The Stock Market In China Has Been Financing For 4 Trillion And 300 Billion &Nbsp In 21 Years.

Chinese Listed Companies in the past 21 years

Editor's note: in the past 10 years, China's economy has maintained an average growth rate of 10.48%. The performance of China's listed companies is also higher than that of other enterprises. In the same period, China's stock market continued to be depressed after a brief blowout. It seems to be a reverse indicator of the barometer of the national economy.

What caused such a great contrast?

In order to solve the reasons for the contrast, the reporter interviewed and investigated the listed companies, investors, intermediaries and industry experts from the perspective of "stock market ecology", hoping to promote the market return to the standard while facing the ecological crisis of China's stock market at the present stage, which is really playing an important role in optimizing the allocation of resources.

From today on, the research report will be published in succession.

Despite the fact that it is across the river from the famous the Bund, Shanghai, it is difficult to conceal the pessimism of the stock market.

Similarly, the Shenzhen Stock Exchange, which is opposite to the king's building of Shennan Avenue, is also full of sigh from the institutions.

"During this period, the market has fallen more severely, which has a great impact on its performance, but it still needs to be done."

A trader said helplessly.

But for preparing for war

The experts interviewed by the economic reference daily believe that listed companies only know money and do not know what to return, which has become one of the most ill and most detested phenomena in the A share market.

The lack of shareholder return culture in listed companies has become a major reason for strangling ordinary investors, leading to prevailing market speculation and restricting the healthy development of China's capital market.

A handful of "iron chicken" is not in the minority.

For a listed company, the capital market is probably the best.

According to the SFC statistics, from 1990 to July 2011, the total amount of financing of domestic A shares including initial, seasoned equity offering and rights issue amounted to nearly 4 trillion and 300 billion yuan, of which the amount of refinancing amounted to about 2 trillion yuan.

According to Wind data, reporters initially estimated that from 1990 to the end of 2010, A shares accumulated cash dividends (excluding bonus income tax) about 1 trillion and 800 billion yuan.

However, it has to be mentioned that the proportion of ordinary investors who invested 4 trillion and 300 billion yuan in the listed companies is relatively small, and the dividends they get from the listed companies are also small.

According to Wind data, the shares raised by IPO in the domestic stock market account for only 11% of the total share capital issued before.

"Generally speaking, the total share capital of listed companies after initial and refinancing (including rights issue and issuance) will not exceed 30% of the total share capital."

A senior brokerage analyst admitted.

The analyst estimates that in the cash dividend of a total of 1 trillion and 800 billion yuan in the listed company, the cash dividends received by ordinary shareholders will not exceed 540 billion yuan, based on 30% of the shareholding of ordinary investors.

Moreover, for ordinary investors in China, they still need to carry "

Although the number of companies that distribute cash dividends has increased as a result of regulatory constraints in recent years, there is still a small number of "iron chicken" listed companies.

According to statistics from the Securities Research Institute of Fudan University, from 2005 to 2009, the proportion of listed companies that paid cash dividends accounted for 45%, 50.22%, 51.85%, 52.35% and 48.52% of all listed companies respectively.

In 2010, of the 2175 listed companies, only 117 companies were losing money, but the number of "iron cock" without dividends or shares was as high as 798.

In addition, by the end of 2010, the time of listing was over 5 years, and there were 414 stocks that had never been paid dividends in 5 years, of which 136 were profitable companies, accounting for 32.85%.

These include Jinma shares (6.49, -0.05, -0.76%), Hai Wang biological (8.35, -0.08, -0.95%) and Tonghua Dong Bao (8.59,0.05,0.59%) these hot stocks.

Worse still, many listed companies have paid dividends to investors by refinancing.

Liu Shulian and Hu Yanhong, a researcher at Dongbei University of Finance and Economics, point out that dividends in listed companies generally do not exceed book profits in the empirical analysis of cash dividends in Chinese listed companies. However, a considerable proportion of the company's cash dividends per share exceed its share free cash flow per share, which means that these dividends come from the rights issue financing, and the money coming from them has become the source of cash dividends.

The face of money only doctrine is exposed.

There are other strange phenomena associated with low dividend payout: all kinds of financing activities are endless. ST type zombie companies continue to perform the myth of immortality.

Although the domestic stock market has been in the doldrums in recent months, Shaan coal shares still passed smoothly at the end of August.

The company intends to issue 2 billion shares and raise 17 billion 251 million yuan.

Prior to that, China's hydropower has also been successful. It intends to issue 3 billion 500 million shares and raise 17 billion 361 million 800 thousand yuan. If it is successfully issued, it will become the largest IPO project this year.

Statistics show that in the first half of this year, 164 new shares were issued in the A share market, 12 less than last year's 176, and IPO actually raised 160 billion 775 million yuan, down 24.60% from the 213 billion 228 million yuan a year ago.

However, from the issue of IPO in August, 23 new shares were issued.

In from September 5th to 9th, 8 new shares including 29.890,11.89,66.06% and 18.280,3.90,27.12% were launched.

Moreover, many of the weighted super large cap stocks are repeatedly financing and refinancing without restraint.

In September 9th, China Merchants Bank (11.66,0.07,0.60%) adopted the "A+H" rights issue plan. The size of the rights issue financing is not more than 35 billion yuan RMB.

Some analysts said that several major banks in the past five years will have 400 billion to 500 billion yuan capital shortfall, bank stock refinancing has become an inevitable trend.

In addition to endless money, some ST type zombie stocks have repeatedly staged the "undead myth" in the A share market.

Statistics show that as of June 30, 2011, there were 19 listed companies with net assets per share (excluding minority shareholders) below -1 yuan.

These long term serious insolvency "shell companies" have already trained a superman's "survival skills".

Take *ST China (5.25,0.10,1.94%) A as an example, since its listing, it has 9 years of losses and 2 years of profit record: loss in 1997 and 1998; profit in 1999; loss in 2000 and 2001; low profit in 2002; loss in profits and losses; small profits; losses; small profits, losses, and profits.

In this way, the stock has not touched the "three consecutive years of loss" of the delisting line.

Some executives of listed companies are trying to get money from the capital market by hook or by crook.

Wind statistics show that in 2011, a total of 2117 top executives of A share were reduced, and the total number of shares reduced to 790 million shares, which involved a market value of about 12 billion 600 million yuan.

In the A share market, the lack of shareholder return culture has become the most hated and criticized phenomenon in the market.

The core content of equity culture is the concept of shareholder sovereignty.

Liu Junhai, director of the Commercial Law Research Institute of Renmin University of China, who participated in the research, drafting and revision of commercial law and securities law, said that the so-called shareholder sovereignty is to completely confirm the ownership status of shareholders in corporate governance and fully respect the rights and interests of shareholders in accordance with the laws and regulations, especially the right to know, the right to participate in decision-making, the right to dividends, the right to supervise, and the pfer of shares.

"This means that the stock market is no longer just a means of circulation for listed companies and issuers, but a treasure bowl for investors to obtain investment returns and share the fruits of healthy development of China's capital market and national economy."

Liu Junhai believes that the rules of A share must be changed in terms of "heavy financing, light investment, heavy money and light return". Instead, the "banner of heavy investment, heavy protection and heavy repayment" should be replaced by high flying.

Heavy financing and light return distort stock market system

A healthy capital market should be a function of financing and investment. Any function of "going out" will affect the development of the market itself.

"The cash dividend level of listed companies is generally low, and the ratio of dividend payout rate in domestic market is only 20% to 30%, while the proportion of dividend payout rate in overseas mature markets is generally 40% to 50%."

Li Daxiao, director of the British Securities Institute, thinks.

In the western mature market, listed companies have pparent dividend policy and long-term dividend measures.

Shares such as general motors, Coca-Cola and Alcoa have kept a certain amount of dividends for decades, and their shares are held for a long time by investors with both fixed income and growth value.

In the "BRICs" of Brazil, the company law of the company requires that a share company must stipulate in its articles of association that a certain percentage of the surplus should be paid every year for cash dividends, and that the proportion shall not be less than 25% of the surplus.

In fact, there are not many enterprises with high growth in the A share market. At the same time, the performance of growth enterprises after listing is far from satisfactory.

Zhao Changwen, director of the Enterprise Research Institute of the State Council Development Research Center, said, "this is the death of China's capital market".

On the one hand, on the one hand, China's current trial system has the risk of "adverse selection" to a certain extent. The typical manifestation is that a large number of high growth and good texture enterprises represented by Baidu and Tencent can not enter the A share market.

On the other hand, after the listing of enterprises, due to the imperfection of China's capital market, the corresponding governance mechanism has not been provided to the healthy growth of enterprises. There may be "moral hazard" in management or controlling shareholders.

At the same time, the uneven development of the industry also leads to dividends.

"To change this phenomenon thoroughly, the dividend mechanism is an important aspect, and it also needs to be improved in other aspects of the capital market, such as the optimization of the investor structure."

According to Zhao Changwen, there are two obvious characteristics of the investor structure in the A share market: the proportion of short-term investors is relatively large and the proportion of institutional investors is relatively low.

Short term investors are less likely to incorporate dividends into their investment decisions, which leads to insensitivity to the dividend policy of listed companies. Therefore, a relatively high proportion of short-term investors means that the voting mechanism of "foot voting" has failed to some extent.

The proportion of institutional investors is relatively small, which makes it difficult for shareholders activism to play a role in the governance of listed companies on a macro scale.

"All kinds of ST shares dominate the market and will encourage the stock market to speculate wildly, and the junk stocks without investment value will become the bargaining chip of gamblers. It will seriously distort the valuation system of the entire A shares, and make the stock market totally lose the function of resource allocation and the barometer of the economy."

Dong Deng, director of the financial and Securities Research Institute of Wuhan University of Science and Technology, said.

"In a sense, there is something wrong with regulatory policy."

Liu Jipeng, director of the center for capital research at China University of Political Science and Law, told the economic reference daily that 258 GEM listed companies were very serious in terms of the gem, but until today, although the market has made a disagreement, the average price earnings ratio of the 258 GEM companies is still 66 times higher than that of the GEM companies. The average issue price is as high as 33 yuan / share.

"All these executives have become red eyed upstarts. The gem has caused systematic harm to China's capital market, misleading Chinese entrepreneurs, and turning them from very good and honest entrepreneurs to wronged people who have gone astray."

He said.