Du Kunwei'S Interpretation Of China'S Stock Market Skyrocketing And Plunging

There is still a lack of evidence to blame the small and medium investors in China's stock market problems, and there is still suspicion of scapegoats, because the author re read the former chairman of the securities and Futures Commission Gao Xiqing's interview with reporters from Phoenix network.

As long as institutional funds still take a gamble mentality to participate in stock market speculation, it is useless to vigorously develop institutional funds to kill small and medium-sized retail investors. That is the game between institutions and institutions, rather than the game between institutions and small and medium-sized investors, and the market may be more brutal.

The reality tells us that only by allowing institutions to mature and changing short-term gambling behavior will the Chinese stock market mature, and the Chinese stock market will go out of the vicious circle of skyrocketing and plunging to avoid the recurrence of the stock market crash at the end of June.

As far as agencies are concerned, the author thinks that they include regulators, investment institutions and business organizations.

No matter which organization, it is necessary to get out of the market fundamentalist influence and not to commercialize profits for itself, especially the regulators, in the name of marketization. It is also necessary to establish Scientific Outlook on Development and always follow the scientific and steady development thinking. As for the Chinese market, the task of issuing new shares is extremely heavy, and we should pay attention to the expansion of new shares. We must not forget the situation because of the spur of the moment, expand the scale on a large scale, let investors feel fear and let the market enter the freezing point very quickly, so that there is always a strange circle that will suspend the resumption of the great leap forward expansion.

As far as operating organizations and investment institutions are concerned, they should not take the name of marketization as a pretext, regardless of market realities, and strive for maximizing their own commercial interests. They may even try to make up their minds, opportunistic and opportunistic, engage in speculative operations, hit the edge ball, play hide and seek games with management, or play cat and mouse games, thus jeopardize the stable operation of the entire capital market.

Business organizations and investment institutions should understand that there is no end to eggs under the nest. You have to make a mess of the entire capital market for your own interests, or simply create a stock market crash, and you can only follow the burial.

Despite the market share differences in June, there is no denying that excessive leverage is an important factor. One is too much leverage. In terms of two financing for the field, June 18th is the peak value, with 2 trillion and 270 billion yuan. The off market leverage fund is much different from the market. The median is about 3 trillion yuan, and the leverage ratio is too high. The funds in the field are about 1-3 times, and the off site funds are 3-10 times.

Two, leveraged business leveraged investment is a kind of financial innovation. It will magnify risks while magnifying profits, but the parties in the market should consider their interests maximization and immerse themselves in the short term.

In the honey pot, regardless of the laws, regulations, market risks and disorder development, the operators completely ignore the principle of investor appropriateness, blindly ignore the market risk principle, blindly develop, and do whatever is right. This is a short-term madness that ignores long-term risks.

It is the lever funds that break out gradually, causing the market to spiral down, and the market liquidity is exhausted instantly.

At the same time, it also creates huge risks for itself. Some of the funds can not be recovered, resulting in a lot of P2P platforms failing, or even running off.

In other words, as a small group, I wrote a short article to warn of the risk of excessive expansion of leverage capital. As a group of securities firms such as experts, do not know the huge risks involved, especially the over-the-counter distribution of assets and the high leverage ratio. Investors do not have investment experience or have corresponding risk bearing capacity. They are only seeking an income risk under the temptation of short-term risks. They are risk thinking that knows that the tiger has a tendency toward tiger mountain.

Driven by short-term profit margins and huge profits from Commission, they have put responsibility risk behind.

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Public funds, securities companies are the two important institutions that stand on the front line of China's capital market. The former is the backbone of stabilizing the stock market, and the latter is also strong in strength. It is one of the market investment directions. At the same time, it is responsible for compliance business. Improper behavior will inevitably lead to huge capital market risks. They not only make waves during the bull market, but also be accused of being a big trouble during the bailout period.

The market behavior of any organization can not be carried out in the name of marketization without anarchism, ignoring the interests of the state and ignoring national laws and regulations.

Their behavior has greatly increased the risk of the market, especially the leverage problem of the securities companies, including the two party financing and the access of the third party funds.

Although there is no explicit provision on the scale of the two leveraged funds, as a supplement, regulators and brokerages have a prudent provision to prevent financial risks, but in the interests of driving, Prudential provisions exist in name only.

In the market demand for the two financial funds is extremely strong, the broker is not considering the risk, but to increase the intensity of financing, increase net capital and increase lending ability, and leverage funds have no suspense barbaric growth, laying an excellent foundation for the collapse of the post market.

Leveraged funds have the cost of capital, especially the annual cost of off the shelf leveraged funds is around 20%, and investors are not rational enough to start frantically chasing market hot spots.

But the disorderly development of brokers also left behind a hidden danger for the future market. At present, too many idle funds left behind by the securities dealers can not be melted out and become a heavy burden.

Capital interest expense has become a major weapon to nibble away profits.

Management agencies and investment institutions always play cat and mouse games with management. This is also true for leverage funds. Management has warned more about leverage risk once again, and has advised and even cautionary. But market participants remain unconvinced by their own interests, and are still convinced that wealth and risk are still being leveraged.

The result is that they smashed their bricks on their own feet, not only destroying China's stock market, but also destroying China.

Or self destruction of the Great Wall, let oneself suffer huge losses, and smashed their own rice bowl.

Not only did they run huge losses, but they also encountered severe penalties from management, and the SFC punished four major brokerages and ordered them to be corrected.

Among them, the illegal gains of Huatai Securities were confiscated by 18 million 235 thousand yuan and a fine of 54 million 705 thousand and 800 yuan. The illegal gains of Haitong Securities were confiscated by 28 million 653 thousand yuan and fined 85 million 959 thousand yuan. The illegal income of GF Securities was confiscated by 6 million 800 thousand yuan, and a fine of 20 million 410 thousand yuan was confiscated. The illegal gains of Founder Securities were confiscated and 8 million 710 thousand yuan was fined, 17 million 430 thousand yuan was fined. The illegal gains of Zhejiang merchants were fined 28 thousand yuan, and a fine of 300 thousand yuan was imposed.

Penalties for other institutions are also very severe. According to the "illegal operation of securities business" stipulated in the 197th article of the securities law, the SFC will confiscate the illegal income of Hang Seng company by 132 million 800 thousand yuan, and Hang Seng company will also pay a fine of 398 million yuan for this purpose.

Meanwhile, Hang Seng company chairman Liu Shufeng and general manager Guan Xiaolan will also face a warning and be fined 300 thousand yuan respectively.

It's hard to steal a lot of rice.