What Is The Significance Of Zhang Yujun'S Investigation To China'S Stock Market?

The Central Commission for Discipline Inspection website announced that "Zhang Yujun, assistant to the China Securities Regulatory Commission, is suspected of serious violation of discipline and is currently under investigation."

As soon as the news came out, one stone stirred up thousands of waves, and the market immediately produced great repercussions.

Why did this event cause a great response in the market? What is the future trend of China's stock market? What should investors pay attention to? And so on. This is the market thinking.

Zhang Yujun was investigated and said that China's stock market should be an unprecedented event.

Since the establishment of China's stock market after the reform and opening up, this should be the top management of the CSRC's management.

The government's move to Zhang Yujun also means that for the issue of China's stock market, no matter who or how high the position is, the Central Commission for Discipline Inspection's anti-corruption will not be soft hearted, but will fully investigate and seriously deal with it according to the circumstances, and it is estimated that this will not be tolerated.

The Central Commission for Discipline Inspection has been involved in a question raised more than ten years ago. "Who will supervise the China Securities Regulatory Commission?" because, as far as the fundamental characteristics of China's stock market are concerned, it is basically a government led market and a market oriented one.

It is entirely implicit by the government.

Since the entire stock market is dominated by the government, the government has unrestricted power or absolute power over the Chinese stock market.

The power without restraint is the root cause of corruption in China's stock market and the root of the chaos in China's stock market.

Because absolute power must be absolute corruption.

China's stock market is just beginning to appear.

From Zhang Yujun's investigation, it should only set off a small corner of financial corruption in China's stock market.

Imagine that the core of the incident is CITIC Securities's use of the government to rescue the market.

Through insider trading, we can make great profits, or we can pform public interests into private or corporate interests through simple information superiority.

So the Chinese stock market has gone through more than 20 years, so much experience has gone through. In the past events and activities, the unrestricted power or absolute power of the CSRC can make use of its opportunities to make profits, which will be infinitely more than before.

If the Central Commission for discipline inspection can borrow this incident, investigate the corruption problem in China's stock market and punish severely the corrupt.

If this is done, it will play an important role in promoting the healthy development of China's stock market in the future.

The question now is, since the Central Commission for Discipline Inspection has already opened a knife to the top management of the China Securities Regulatory Commission, who will supervise the China Securities Regulatory Commission?

The personal problems will also be prevented by the formulation of the system to prevent the supreme authority of the SFC from abusing its power.

The incident also reveals why China's stock market has been immature for so many years, that is, it can not develop, such as violation of laws and regulations, insider trading and so on. It is estimated that not only is China's stock market coming from planned economy to market, but also many regulators are making use of unregulated regulatory power to make profits.

There are not only market access problems such as approval and rent seeking, but also information seeking rent seeking. Regulatory power rent-seeking is ubiquitous.

Just imagine, if the regulatory framework of China's stock market is the source of violation of the law in the whole market, can the effective market order of the entire Chinese stock market be established?

When stealing is stolen, the problem can only be intensified.

This is the root of the current stock market development in China.

If the Central Commission for discipline inspection can take the event as an entry point and formulate relevant basic systems against financial corruption, this is also the basic condition for the healthy development of China's stock market.

Now, the Central Commission for Discipline Inspection starts from here to investigate the financial corrupt practices of supervision, that is, to supervise these regulators from outside, and to restrain the regulators of China's stock market from outside, then these Chinese stock markets will not be able to converge or converge, or else they will make their own decisions.

In this sense, the development of China's stock market should be of considerable significance.

At the same time, we should also see that since the government rescued China's stock market in July, China's stock market has not only been really stable, but the market problem is getting bigger and bigger, and the government has invested a lot of money in order to save, but the stock market has been falling down.

Therefore, after the incident is detected, the government will not only rethink the idea of rescuing the market, but also formulate new rules to save the market, which will help the government to save the market and truly stabilize the market.

In this sense, this is good for the current stock market in China, depending on whether investors recognize it.