Together with lack of independence, China’s stock market also suffers from lack of transparency. Some companies have booked their balance sheets to get listed and the owners make handsome profits by selling stocks after the listing, behavior that is seldom investigated.

Facing those chronic diseases, policymakers have taken various measures in the past but all in vain, demoralizing the tens of thousands of investors.

The State Council statement, unsurprisingly, would temporarily boost investor morale. But before it can be translated into real market-building and investor-protecting measures, it is advisable for individual investors to remain sober-minded despite the strong rally on Monday.

The orientation of China’s stock market build-up is clear: It must be free of administrative influence; it must have clear information disclosure; and it must be supported by an effective legal framework that can punish those who cheat.

Indeed, it is easier said than done. But without achieving those Herculean tasks, it would be hard for China’s stock market to serve as a real corporate financing platform that serves the long-term interest of both investors and the national economy.