There Is No Need To Set Up A Strategic Emerging Board In The A Share Market.

On the news briefing held by the Information Office of the State Council in December 25th, Fang Xinghai, vice chairman of the securities and Futures Commission, made a briefing on the key work of capital market next year.

Among them, one of the most important tasks is to actively develop the stock market, enrich the market level, and set up a strategic emerging board, which will be launched next year.

Judging from the arrangement of the SFC, the launch of the strategic emerging board has not been suspense in 2016.

However, I am sorry to tell you that this work, which is regarded as the top priority by the SFC and the Shanghai Stock Exchange, is of little significance to the development of China's stock market.

It shows that our management departments are still in an unprofessional state, or they are doing superficial work and image engineering rather than focusing on improving the construction of China's stock market system.

With the view of old leather, if management knows anything, there is no need to do this kind of thing.

Why? First of all, the opening of strategic emerging board is not conducive to competition between Shanghai Stock Exchange and Shenzhen Stock Exchange.

The intention of the Shanghai Stock Exchange to advocate the strategic emerging board is to launch a strategic emerging board to compete with the Shenzhen Stock Exchange's growth enterprise market.

Because at some time in the past, the Shenzhen Stock Exchange's small and medium-sized stock issue was booming, and the speculation of small and medium-sized stocks was also booming. The Shanghai stock exchange not only lagged far behind the Shenzhen Stock Exchange in the issue of new shares, but also fell far behind the Shenzhen Stock Exchange in the daily turnover of shares.

In order to reverse this disadvantage, the Shanghai Stock Exchange came up with the idea of opening up strategic emerging board.

Secondly, from the perspective of expanding financing, there is no need to set up strategic emerging boards.

As China's stock market has never changed the positioning of the money market, for management, expanding financing has always been very interesting to management.

In fact, it does not exclude the introduction of strategic emerging board, which is also based on the consideration of expanding financing.

But the problem is that the introduction of strategic emerging board will not help expand financing.

Because in the reality of China's stock market, whether we can issue more stocks and allow more IPO companies to go public, is in the final analysis the matter of market affordability, rather than the opening of several "strategic emerging boards".

If there is a problem in the stock market's capacity, it will be no use to launch more "boards".

Therefore, even from the perspective of expanding financing, the introduction of strategic emerging board has no practical significance.

Third, there is no strategic emerging board.

Listing can also be listed on the Shanghai Stock Exchange.

After all, the current A share market is not short of Listed Companies in emerging industries, including the Shanghai Stock Exchange, and there is no shortage of new industrial enterprises.

From another angle, it is not because of the strategic emerging board that all emerging industries will choose to hang out on strategic emerging boards.

Those listed on the Shenzhen Stock Exchange will still be listed on the Shenzhen Stock Exchange.

It is impossible for strategic emerging enterprises to "take all" into enterprises of strategic emerging industries.

In addition, it is a wrong decision to set up a strategic emerging board to welcome the return of stocks.

On the one hand, the return of China's stock market does not need the embrace of strategic emerging board.

In the days when there was no strategic emerging board, China's stock market returns were repeated.

On the other hand, it is even more unnecessary to set up a "stock return to special board" to meet the needs of China's stock market.

After all, China's stock market return must meet the requirements of A share listing, and it will not relax the possibility of stock return because of the strategic emerging board.

Further,

There is no need to welcome the return of China's stock market.

It should not be advocated, nor can we use the strategy emerging board to reverse the history.

After all, the return of stocks is not to return domestic investors, but more to avoid severe market regulation in the A share market and better to withdraw money from the A share market.

This motive itself has great problems and is not conducive to the healthy development of the A share market.

But today, the disadvantage of the Shanghai Stock Exchange has basically been changed.

In order to take care of the interests of the Shanghai Stock Exchange, the SFC has adjusted the IPO audit policy since March 27th last year.

The restrictions on the number of initial shares to the listing place have been pferred to the Shanghai Stock Exchange.

It can be said that as long as the Shenzhen stock exchange can issue shares, it can also be issued on the Shanghai Stock Exchange.

There is no clear boundary between the two, but on the other hand, the Shanghai Stock Exchange also has the advantage of issuing large cap stocks.

Because of this, from the perspective of competition between the two exchanges, the opening of strategic emerging board is no longer necessary.