Yi Xianrong: Let Investors Lose Heart When They Stop Mentioning IPO.

Domestic IPO restart expectations, immediately hit the market confidence, the Shanghai Composite Index fell 1.5% in April 21st. Market analysts pointed out that, due to the current domestic economic weakness, IPO is about to restart, which will not only create a heavy market confidence, but also bring repeated volatility to the market in the short term.

Why does the market have no confidence in the restart of IPO? Is it liquidity or other aspects of the market?

It can be said that for a mature stock market, it is normal for a listed company to exist and die. If there is no market or no IPO restart, there will be no exit from the listed companies, nor is it possible to form the market competition mechanism for the survival of the fittest. And if the market does not compete, where does the effective market come from? IPO startup is a good thing for the stock market.

But why does the domestic stock market become so nervous about IPO startup? The domestic stock market IPO has been suspended for a year and a half. Such a long time without starting is itself a problem. Now, IPO is also a problem to start - the reason for the domestic stock market volatility. This only shows that the fundamental defects of the domestic stock market have not been solved.

According to the spirit of the third Plenary Session of the 18th CPC Central Committee, Xiao Gang, chairman of the securities and Futures Commission, has launched a series of major institutional reforms in the stock market, especially the reform of the stock issuing system. Its strength is unprecedented and its direction is correct. However, because any system is imperfect, and the existing laws and regulations can not keep up with it, the new stock issuing system has not really achieved the goal of the beginning of the system design. On the contrary, some companies have made the most of the shortcomings of the "listing money" in the past when some stock companies went public. So, once I hear it, I want to restart it. IPO Investors have no confidence in the market.

domestic equity market The biggest problem is that the stock market is completely finished. Listed company The tool of money collection has become a tool for some people or organizations to rob ordinary investors. These people or organizations can enter the stock market to get rich overnight. The financial resources of the society easily flow into their hands. However, most investors are basically killed by the stock market, and even many people are going to enter BMW's "Alto". How can small and medium-sized investors have confidence in such a market?

Restarting IPO is the premise for domestic stock market to reform, develop and prosper, because the existing stock market problems can only be exposed, improved and solved through IPO restart. If IPO is not restarted, it is impossible to make major institutional reforms in the securities market. Moreover, the restart of IPO can add new impetus to the downward trend of China's economy, increase the financing channels of enterprises and reduce the financing cost of enterprises.

Since the current restart of IPO is so important, under the market's lack of confidence, regulators should not only persist in the major institutional reform of the securities market, but also give investors a very clear expectation that the new issuing system will change the status quo and create a fair and fair trading platform for small and medium investors.

In addition, due to the incompleteness of the system, the regulators should pay close attention to and study the new problems emerging in reality, and improve the issuing system at any time. In other words, we need to set up a new arrangement of issuing system in order to cooperate with the start of the new round of IPO and ensure that small and medium investors can gain access to the market through institutional arrangement. Only in this way can the confidence of the stock market be gradually established.