The Talent Crisis Of China Securities Regulatory Commission Has Become Increasingly Popular.

At the beginning of the new year, China's stock market did not change everything.

It seems to be a test of the effectiveness of the fusing mechanism. There are four high frequency scenes triggered by the four trading days.

What is more dramatic is that the China Securities Regulatory Commission (CSRC) has called for a halting and blowing up mechanism overnight.

It seems that the scars of shareholders are not painful enough. The SFC announced that the adjustment and enhancement of the leading group for poverty alleviation and development was chaired by Chairman Xiao Gang.

Chinese investors must be very interested in knowing whether they meet the criteria of "victims".

Beyond endurance, there is no need to bear it any longer.

Li Jiange once again warned that "if the crisis of talent in the regulatory sector is not resolved, the crisis in China's stock market will come in waves."

His warning once again raised doubts about the SFC's "capability".

Li Jiange's words were very weighty. First, he had severely criticized the dangerous practices of making "national cattle" and "reforming cattle" before the stock market crash in 2015. Two, because he served as executive vice chairman of the securities and Futures Commission during Zhu Rongji's term of office, he was the "old Wizard" who responded to the stock market volatility. Three, because he said the point of the SFC, he pointed out the root cause of the disorder in the securities market.

Why does the SFC behave in disorder?

In the third Plenary Session of the 18th CPC Central Committee, the reform put forward: let the market play a decisive role in the allocation of resources.

One of the core principles is to correctly handle the relationship between the government and the market.

Liu He pointed out that every financial crisis means a serious imbalance between the government and the market.

The relationship between the government and the market has always been the core proposition of economic research.

Initially, the CSRC maintained a strong paternalism complex for the stock market, which could be understood.

At that time, we need to make use of the stock market to help state-owned enterprises get rid of difficulties and structural reforms, and we need to gradually improve the regulatory system and learn from them.

Over time, the SFC began to make breakthroughs in dealing with the relationship with the market, especially in prime minister Zhu Rongji's term.

In the 1996 A share bubble, regulators continued to strengthen investors' sense of risk and repeatedly issued "twelve gold medals".

Zhu Rongji said, "at this time, we can not help talking, so we published a commentator article of the people's daily, which was drafted by comrade of the China Securities Regulatory Commission. In fact, there are three reasons: first, the stock market is irrational now.

Second, when the stock market is going up and down, the government will not support the market, nor can it afford it.

Historical experience proves that no one can support the stock market.

Third, the risk of the stock market is conceited.

You earn more, you lose money, you pay for yourself, the government can't manage it.

Now the risk awareness of shareholders is not as good as before the founding of new China, when the Shanghai shareholders lost money and jumped to the Huangpu River.

Now he has made no money in making money; he has lost money to look for the municipal government to smash the glass of the municipal government.

Now, do not warn him, what will happen in the future?

It should be said that after 97 years of lessons learned from the stock market crash and the clarification of the boundary between the government and the market, the concept of investor's risk conceit is basically established.

Unfortunately, the stock market crash in 2015 led to a mess of the SFC again, a "behavioral disorder", and a blurring of the government and the market boundary.

This is the most serious institutional setback in the 25 years since the development of China's capital market.

No matter what the original intention of the SFC is, the volatile policy changes will only increase information interference and aggravate the unfair game of the market.

A market with stable rules can not be expected, and the possibility of healthy development is almost 0.

Therefore, the biggest crisis in the stock market is not a sharp fall, but in the concept, integrity and determination of regulators.

Perhaps the SFC considers itself "very hard" but its behavior is actually a new source of risk.

Behavioral disorder is a representation, whose root lies in the confusion of ideas.

How to do something right or not is a major task for the SFC to reconsider.

Liu He, director of the financial affairs office, recently pointed out: "financial regulators need to have a deep sense of self-examination and continuous improvement."

The stock market crash in 2015 paid a heavy price.

The root cause of the stock market crash is that some officials and official media endorsed the bull market, leading to the consensus of the so-called "reform cattle" and "national cattle", which quickly went to the "mad cow" pattern; the regulators failed to enforce the law during the bull market crazily; they sat on the "brutal growth of matching capital", fighting against false information, insider trading and weak manipulation of stock prices; after the stock market crash, they began to "exercise law enforcement", and strictly investigated the allocation of capital, fraud and stock price manipulation, which aggravated the market panic.

If these works are done seriously during the bull market, why should they do so? This is typical of doing the right thing at the wrong time. After the stock market crash, the SFC was totally led by the market, and its behavior was disorder and its size was not in the same place. Once it fell sharply, it was introduced into the stock market overnight, exacerbating the market expectation disorder. In order to save the market, the SFC willfully amended the rules, even passed the securities law, suspended the issue of new shares for the ninth time, restricted the shareholders' rights of the major shareholders and Dong Jiangao, forced the broker to rescue the market, and allowed the insiders to sell and buy again in six months.

All these, not only can not achieve the effect of saving the market, but also make the international

A serious shake of confidence in the institutional foundation of China's securities market.

With so many problems, the SFC did not reflect on itself, instead, it made the "imaginary enemy" to shift the focus: first, it blamed the hostile forces outside the country; second, it was attributed to stock index futures; third, it was blamed on the lack of fusing mechanism.

It turned out that these are all nothing - the hostile forces outside China turned out to be the vice chairman of the securities and Futures Commission, Yao Gang, assistant chairman Zhang Yu Jun, and CITIC Securities, a rescue team. The suppression of stock index futures led to these important financial innovations at risk. Many institutional investors had to rebuild their trading models. In the presence of the 10% limit trading system, the 5% and 7% fusing mechanism was purely "gild the lily".

Facts have proved this point. The fusing mechanism has further constrained the liquidity of the stock market and aggravated the panic mentality.

The fusing mechanism is so funny and so exiting. It is not that the SFC is really "very silly and naive". It lacks the courage to reflect on itself, and scapegoats blindly.

For the Commission's behavior disorder, Li Jiange accused, "last June crisis, why every time the Securities Regulatory Commission in the market forced every night to make a new policy adjustment, where did you go beforehand? Since 4 days later announced the suspension of the fuse mechanism, indicating that in the tight situation last year, some of our regulatory measures are hasty and crude.

What we want to ask is, until now, is there enough time to summarize what is rough last year? "It is a pity that although the SFC has recently sacked senior executives such as Yao Gang and Zhang Yujun, it has not seen any signs of in-depth self-examination by the SFC.

What should the SFC do?

Supervision is the core function of the SFC.

The securities market is a capital and information intensive market, and the temptation of illegal crimes is enormous.

Therefore, whether regulators can ensure openness, fairness and impartiality by strict supervision is the basis for healthy development of the securities market.

To return to our supervision means that: no matter bear market or bull market, the SFC must strictly supervise and punish according to law, punish criminal offenses strictly, and do not engage in sports law enforcement. The main targets of supervision are counterfeiting listing, false information disclosure, insider trading and stock price manipulation. At present, the securities law is punishing too little for illegal crimes.

Regulation is certainly not easy: the SFC not only has to fight against criminals, improve its supervisory capability, but also fear criminals and the interest groups behind them.

Therefore, the most important thing is not to enforce the law, but to enforce the law.

Only by Wang Qishan's historical courage can China's securities regulation regain its dignity.

What should be emphasized is that the SFC has done too much offside at present and must be corrected.

On the one hand, the stock price index should not be concerned.

The SFC officials should avoid issuing comments on the stock market trend, and should not introduce policies to suppress the stock market or to support the market.

The stock market is rising or falling, and even bubbles and collapses are also caused by animal spirits. There is no need to make a fuss. No one can interfere with the rhythm of IPO, and the listed companies increase or reduce stock issuance according to the price earnings ratio. This is the market mechanism of the interaction between price and supply and demand. Human intervention will only destroy the market mechanism.

On the other hand, there is no beauty contest.

Which companies can be listed and what prices are listed, only the buyers are eligible to vote with money.

Regulators decide which companies are eligible for listing. This is a serious offside and rough intervention in market behavior.

It can be seen that the ambiguity and deviation of the concept is the death point of the SFC and the root cause of the chaos in the stock market.

"Loyal words and bad ears are good for business". Loyalty to Li Jiange's point of view can give the SFC a big bang and wake up.

It is not complicated for the SFC to do a good job of regulators. The key is to establish a correct concept, strictly abide by the reasonable boundaries between the government and the market, and let the market go to the market, rather than fall into the trap of being led by the index.

Only if the idea is correct, can we not be covered by the "floating clouds" of market fluctuations, so as to avoid falling into a bad cycle.

For China's top leadership, 2016 is the year of supply side reform.

To promote deleveraging, we must implement IPO registration reform as soon as possible.

Therefore, starting from the overall reform of China's economic pformation, the central authorities must make early efforts to solve the "talent crisis" of the SFC.

People are right, the stock market can really get better.