Stock Market Downturn Hurts Economic &Nbsp; Urgent Need To Boost Stock Market Confidence

In September 9th, Mid-Autumn Festival On the last trading day of the mainland stock market, although the economic data released slightly warmer, the Shanghai and Shenzhen two cities collectively opened high, both fell, the Shanghai Composite Index [2497.75 -0.05%] closed down again from 2500 points to 2497.75 points. In fact, although China's economic fundamentals are generally good, the external stock market is also rising and falling. A shares The market has been in the doldrums for two years. People can not help but sigh: what is the mainland stock market? Insiders pointed out that the slowdown in domestic economic growth and high inflation are internal causes, and the real cause is also lack of confidence.

The performance of listed companies is good, but the market is green.

Since April this year, the mainland stock market has been on the decline. In August 9th, the Shanghai Composite Index dropped to 2437. But the semi annual performance of listed companies is quite brilliant. Statistics show that in the first half of the year, Shanghai listed companies achieved a total operating income of nearly 8 trillion and 260 billion yuan. Of all listed companies in Shanghai Stock Exchange, 806 companies were profitable, 116 were losing money, and the number of loss making companies decreased by 4 compared with the first half of last year.

The August CPI high ring ratio, which was announced in September 9th, has dropped, which is in line with market expectations, but it still can not drive the mainland stock market to turn red.

From the periphery market, over the past year, stock markets in the US and Europe have been running high. It can be said that when the global stock market is booming, the A share market is weak, and A shares remain weak when the global stock market is depressed.

Hu Yuyue, director of the securities and Futures Research Institute of Beijing Technology and Business University, said: "almost all commodities are rising in price, only the stock market is not rising. The mainland stock market, which is an important part of the global market, is affected by the outside world, but it always keeps up with it."

Inflation makes the stock market. lose Upward momentum

Investor confidence is the foundation of the development of the securities market. According to the insiders, the performance of China's stock market has been poor in recent two years, and the amount of energy is still the main factor restricting the rise of the stock market. The most important reason is the lack of confidence.

Professor Han Fuling, director and doctoral tutor of Applied Finance Department of Central University of Finance and Economics, said that a big problem facing the Chinese economy is high inflation. Although the CPI in August was 6.2%, the ratio of the central bank dropped slightly, still above 6%, and the residents' deposits were still negative interest rates. If inflation can not be effectively curbed, it will affect the stamina of economic development, and the anticipation of policies such as raising interest rates and raising the benchmark will make the stock market lose momentum.

Market confidence can enhance investor confidence.

The industry believes that the market is much more important than bailout. Only by regulating the market can we truly enhance investor confidence and attract more investors to form a positive wealth effect.

Han Fuling believes that at present, we must strictly grasp the quality of listed companies, stop listing and financial fraud from the aspects of issuance, listing and disclosure, and establish a mature and sustainable underwriting pricing mechanism. From the regulatory level to the listed companies, we must strengthen management and formulate more perfect rules of the game.

Hu Yuyue pointed out that, first of all, although the stock market hovered around 2500 points, the market value of the upper class stock market has exceeded the market value of the total stock market at more than 6000 points. In this sense, the new share market should grasp the rhythm and slow down. Second, A shares reached more than 3000 points this year, but failed to break through the key points. He believes that even if it can not rise to a higher level, it can be increased from 2500 to 3000 points, which is also a great encouragement. Therefore, the SFC should take effective measures to stimulate institutions to increase their positions. Third, saving China's stock market needs both symptoms and symptoms. This year is the beginning of 12th Five-Year. In the period of China's economic strategic spanformation, improving quality is more important than increasing quantity. China's economy and China's stock market also need to boost the stock market to inspire confidence in the future growth of China's economy.