The Sharp Rise And Fall Should Not Be The New Normal In The New Era.

Some say that the sharp rise and fall is the new normal of China's stock market in 2015.

I strongly oppose this.

Although the "1. 19" crash is the most recent decline in China's stock market in the past seven years, judging from the statement made by the SFC last night that there is no intention to suppress the market, the SFC, like everyone else, is unwilling to see that the bull market that has not been easy to rise has been lost in the misunderstanding of the regulatory intent of the two financial issues.

The continuous rebound since "1 / 20" proves that perhaps it is precisely because the market understands and accepts the clarifying intention expressed by the SFC that the stock index will not be able to fall down like a previous "5. 30" market.

China's economic development is entering a turning point of sustainable and stable growth.

Taking the reform of registration system as an opportunity, China's investment and financing system will undergo profound changes.

The bull market that came into being is, fundamentally speaking, the embodiment of the return of capital market to value and the return of investment confidence back to investors in the direction of direct financing serving the real economy and promoting economic pformation.

This is the most important and basic value standard for us to analyze and judge the final trend of this market.

Admittedly, after the central bank cut interest rates in 2014, the funds flowing out of the domestic banking system did not flow to the real economy according to the intention of policy design, but rather to the stock market.

The margin trading of some brokerages has a certain degree of anomie, and insider trading and manipulation of the market and manipulation of stock prices have occurred frequently, leading to a rapid rise in stock market leverage.

Under such circumstances, it is obviously necessary to strictly investigate illegal pactions or standardize margin trading.

The problem is not that illegal trading and illegal financing and lending should not be dealt with, but rather the timing and way of monitoring the issue.

In the case of the new normal situation of bear changing cattle, it is especially important that investors are just starting to boost their investment confidence and investors are just beginning to enter the market. It is more important than anything else to protect the enthusiasm of investors and protect the vital interests of investors, especially small and medium-sized investors.

As president Xiao Gang pointed out at the national securities and futures regulatory conference recently, to promote the reform and development of capital market under the new normal, the key is to deal well with the relationship between market and government and continue to promote regulatory pformation.

It is necessary to pform from ex post examination and approval to supervision afterwards, which is the inevitable requirement of changing government functions and improving supervision efficiency.

However, regulatory pformation is easy to say, but actually it is not easy to do so.

From this thorough investigation of the "two fusion" issue, although its original intention is only to make the market more stable, and it has not put forward too harsh demands, why can it still unavoidably cause the overreaction of the market? In my opinion, if we want to solve problems and do things often in the traditional thinking set, then we will return to the set of a gust of wind and exercise.

As long as we do not change the exercise type.

In the old normal market, the market will never be able to talk about the new normal that will keep pace with the times.

There is no doubt about that.

China

From birth until now, there has never been any need for bulls like now.

The pformation of China's economic development has never been like this, and it needs to constantly restore the investment and financing function of the stock market under the impetus of the bull market.

To boost the stock market has not only become the current political task, but also the market direction consistent with the reform of the registered system of people's hearts.

Although we may not deny that the boom in the scale of the two financial businesses may accelerate the pace of the market to a certain extent, the whole wave.

From the beginning to the present, the operation time is not long, and the rate of index rise is not too high. Too early to worry about what mad bull market overdraws the future stock market's rising space is not only unnecessary, but also very unrealistic.

Exaggerating the risks of the two financial problems and even hurting the enthusiasm and confidence of investors in the market will inevitably lead to small losses and bad results.

This is obviously inconsistent with the original intention of the management to strengthen the supervision of the two financial risks.

Protecting the legitimate rights and interests of investors is an inherent requirement for the healthy operation of the capital market, a major event for safeguarding social fairness and justice, and an important guarantee for promoting the registration system reform.

In the process of promoting the registration system reform, we must not let the sharp rise and fall continue to become a new normal for hurting investors, especially small and medium investors.

To strengthen market supervision and risk warning is not to make the stock market skyrocketing or plummeting, but to do a good job in protecting small investors and stabilize the market on the basis of stabilizing market expectations.

The sharp rise and fall is more likely to become a fatal injury to investors, especially small and medium investors, and then, as a market regulator who cares about the safety of investors, it is necessary to prevent sudden surging and plunging at any time, hurting the fundamental interests of investors, especially small and medium-sized investors.

In this respect, we must not be careless and vague.