Yi Xianrong: How Does The Government Control The "Crazy" Stock Market On The Right Track?

The problem now is that the stock market has gone crazy for 7 and a half years, and the stock market volume has been enlarged, breaking the world record of daily turnover. These should not be the biggest problem in the stock market.

The biggest problem is that the stock market is betting that the government's tendency to do more "national bull market" will not change in the short term.

This makes the whole stock market go up side by side to bet on the stock market, so that the amount of money will flow into the stock market, and the stock market bubble will blow up and spread.

Under such circumstances, the risk of frenzied stock market is increasing.

For example, the current stock market volume has been creating a world record, which means that the amount of money is pouring into the market to bet on the domestic stock market rising unilaterally.

Otherwise, the volume will be so crazy.

In addition, the average price earnings ratio of the gem which rose 140% this year is nearly 130 times.

The A share price earnings ratio has eliminated nearly 63 times the market share of the stock market, which is nearly 50 times that of the A share market in 2007.

Faced with this situation, it is very important for the government to control the current frenzied stock market to ensure the sustained and healthy development of the domestic stock market.

As far as the government is concerned, the current stock market is not only important for stabilizing domestic economic growth, boosting residents' consumption and enterprise investment, and promoting the growth of domestic residents' wealth, but also for the international market.

Because yesterday, FTSE, a British index company, said at a news conference that Chinese A shares would be included in the FTSE Russell index (FTSERussell).

FTSE will launch 2 new emerging market indices, including China's A shares.

China's A shares are included in the international index system, not only because China's A shares are recognized by the international market, but the significance of symbolism is very important. More importantly, it means that the global fund will face the Chinese A share market, and these funds will enter China's A shares through the open channels at the right time.

That is, China's A share market will face the choice of global capital.

That is to say, whether it is from the requirements of domestic economic development or China's A shares.

China needs a healthy and sustainable stock market instead of a stock market that is rising unilaterally.

China needs a stock market that goes to the international market, rather than always shutting its doors from the fun market.

Therefore, China

The way of behavior, investor mentality, the concept of investors, the corresponding market rules, government regulation and so on must be integrated into the mature market, and all have to internationalize.

To achieve this, the government must control the current frenzied stock market.

Of course, if the government wants to control the current frenzied stock market, it will have to change the market's expectation of the unilateral rise of the current stock market. It will have to weaken the impact on the stock market in monetary policy and slow down the so-called stock market positive policies.

Of course, the government can't intervene in the stock market in a direct way.

It uses policy leverage to influence market expectations, in order to reduce the risk that the stock market is increasing.

Only in this way can we ensure the healthy development of the domestic stock market and truly create the prosperity of the domestic stock market and China's stock market going all over the world.

In short, the government's

The craze of the current domestic stock market has been spawned.

As long as the government's policy tendencies remain unchanged, the pace of stock market rises will not stop.

Once this trend is changed or reversed, the impetus for China's stock market to go upward will weaken and disappear.

Nor is it to say that the current frenzied stock market, whether it is the stock market's crazy rise or the successive record breaking of trading volume, is not the most important one. The most important thing is that the risk of frenzied stock market is increasing continuously in this process.

In this regard, the government must control the current stock market craziness, we must use economic leverage to change market expectations, rather than directly intervene in the stock market.

This is the key to ensure the sustained and healthy development of China's stock market.