Capital Market Reform And Development Should Be Focused On Key Issues.

I have a theoretical framework. This theoretical framework is a pyramidal structure. The bottom should have an appropriate system and policy culture environment, and the whole social resource mismatch should be minimized.

Second, there is an efficient real economy, and industrial investment has sustained high returns.

Third, financial investment continues to pay high returns, for example, the renminbi will become an international strong currency and become the global reserve currency.

In the competition of global powers, I summarize who can provide the highest rate of financial investment in the world, and whose financial center can become the world's leading financial centre.

Second, who has the best real sector of the economy and the highest average return on investment in real economy will continue to provide the world's highest rate of return on financial investment.

Third, whose market distortion is the smallest, and the social cultural system political environment is most conducive to the efficient allocation and utilization of social resources. Who has the best corporate sector entity economy in the world, including the group of listed companies, can have the highest rate of return of the real economy in the world.

Fourth, who can provide the highest rate of return on financial investment in the world, and its monetary and financial assets will be the most attractive in the world.

There are three principles for the construction of an economic and financial power. We should not short-sighted and focus on the long term. We should not blindly cater to the short-sighted demands, and short-sighted short-term vested interests and sacrifice the healthy and long-term development of the economy.

Second, practice internal skills return to the root, do not do superficial work, can not just say no practice, can not end.

Third, professionalism and rationalism, the modern market economy is a specialized division of labor economy. Its basic logic is specialization. Every field must be specialized from the real economy, the management of the company, the strategic management of the company, the investment from the company to the operation of the capital market, the operation of the government, and the supervision of the market.

The trilogy of the United States and Great Britain in building a powerful financial power: first, to build suitable culture, system, policy and market environment, to effectively deploy and utilize resources in the whole society, to build excellent corporate departments and industrial organizations, and to build a solid solid economic foundation for colleges and universities.

Second, we must establish a deep and wide range of efficient financial markets, including the capital market and derivatives market, while strengthening domestic financial sectors, including the securities industry.

Third, let their financial institutions internationalize and let their financial institutions go out of doors and be invincible.

The United States has been very successful in the three step strategy, and has brought about two leading global positive results in the capital market. First, the total number of Listed Companies in the United States over the past few decades has exceeded 75% of its financing structure from the internal operation process, resulting from the continued high investment returns, and external equity financing accounted for only 5% to 6%.

Second, over the past two hundred years, the outstanding profitability of us listed companies is the annual average return of 5% to 6% after excluding inflation. The so-called Siegel constant is not bragging, nor bubble blowing.

The strategic goal of the development of China's capital market in the future will be summed up as four words: "enriching the people and powerful country", developing into a healthy, orderly, efficient, perfect, outstanding and global leading capital market, realizing the overall pformation and upgrading of the whole economy and society, and building a leading innovative country in the world. Avoiding the fall into the middle-income trap, we must develop a very perfect direct financing system.

The capital market has the correct pricing function, the pricing is wrong, all the functions are all finished, so the correct price signal is the premise for the market economy to rationally allocate resources and the health of the capital market. This is especially true for the capital market. To judge whether a market is functioning well or not is not the index, but whether the valuation is reasonable or not. The valuation is unreasonable. The higher the price is, the faster the bubble will go up. The more reasonable the market is, the more reasonable the market will be to provide a better incentive mechanism.

In a clearly priced capital market, the price is higher than the intrinsic value. The more the stock paction is away from value investment and rational investment, the more speculative and colorful the market is. The closer the market is to irrational prosperity, the greater the negative impact on the whole society will be. The whole society will pay a heavy price when the capital market is completely open to the outside world.

Most investors are entering the stock market with the mentality of getting rich overnight, which means that the stock market's culture is out of order, and its operation mode is out of order. What problems need to be solved in the future? To construct an appropriate macroeconomic environment, let the macro-economy have a solid economy, put the microeconomic efficiency in the first place, and the macro stimulation with inefficiency on the micro level is bigger. The greater the social loss is, the more unsustainable it is, and the higher the risk it brings.

Therefore, we should strongly support China as a global economic and financial innovation and the power of wealth production. The status, function and function of capital market in the whole society will need to be continuously improved, continuously perfected and continuously expanded.

As far as the size of the stock spot market is concerned, the market value of China's listed companies has ranked second in the world, but the quality and efficiency of the market operation are very backward. The market is large but not strong and immature. It is still a immature market with low core professional competence and strong barbarous growth and government intervention.

We have been saying that this is a new pitional market. For nearly 20 years, we should say that until now, we are still a newly changing market with strong color. The risk of market fluctuation is high.

Low returns, its function is not perfect, far behind the basic needs of the real economy and the whole society.

After the establishment of the Shanghai stock exchange, the volatility of the Shanghai Composite Index and the Hang Seng Index and the N225 index of the S & P 500 and Hongkong have fluctuated too much. The high volatility is the risk. The volatility is the risk. The comparison of the three indices in the recent ten years shows that the risk of the market is too high and its efficiency is too low. We are still a weak and effective market, and once entered a semi strong and effective market. Now it is back, not even a strong and effective market. The quality and efficiency of the market are all very problematic.

What are the problems of the stock market going up and down? What are the problems? I can summarize the weakness of the key ability building in the stock market, the three key abilities, the professional ability, the value creation and the wealth creation ability, and the two is the ability of value discovery, that is, the correct pricing ability, and the third ability to control systemic risk.

For example, the main driving force of the stock market has been driven by leveraged driving. I call it Bo herd investment driven herding, valuation distortions and wayward stock market prosperity. Five stir fry, stir fry, stir fry, stir fry, stir fry, stir fry, frantically, crazie, blind, and speculate.

The stock price is too high, the proportion of shares rising after IPO, and the price ratio of small cap stocks and large cap stocks far exceeds that of any other country in the world.

Also eliminated.

After that, we can see that at the high point of the stock market, its P / E ratio is close to the very high P / E ratio at 6124.

In addition, the correlation between our corporate earnings and the Shanghai composite index is negative.

With the support of fundamentals, many of our securities analysts are big flickers, without very rigorous professional analysis.

Therefore, we are faced with the fate of the two China, a primitive and speculative China and prudent, professional and rational investment in China.

To build a financial power, we must develop a prudent, professional and rational investment in China. Therefore, we need the comprehensive pformation and upgrading of the capital market.

Second, focus on improving the continuous return rate of listed companies and the real economy. Now the rate of return of listed companies is less than 5%, and bank deposits are close to 7%. As a balance sheet, it can be seen as a profit statement, a cash flow statement, no money, no EVI and no net capital value.

This problem must be solved. If this problem is not solved, China's capital market can not become the world's leading capital market, because the quality of listed companies is not good enough.

How to proceed from the present situation of investors based on individual investors, effectively promote the capacity building of capital market, improve the value discovery ability of capital market, ensure the appropriateness of capital market pricing, ensure market participation four, do not abuse the market mechanism, and cause the market to grow wild and let go.

Third, how to improve the operation mechanism and ecosystem of the derivatives market, and achieve the balance between the three types of pactions, including hedging, hedging and investment.

Fourth, straighten out the relationship between the government and the market, push forward the regulatory reform, avoid the conflict of multiple decision making by regulators, build a centralized, unified and efficient functional supervision mechanism and effective law enforcement mechanism to ensure the appropriateness of government, regulators, media and market participants, and the duty of all parties to return.