Reducing The "Free Volatility" Of The Stock Market Is Imminent

As the media reported, China's stock market is more volatile than the developed countries, because China's stock market participants are mainly retail investors, lacking the experience of large institutional investors.

Because of this, it is more necessary for regulators to take more measures to reduce market volatility and guide investors to enable investors to mature at an early date.

Rather than simply "get used to it", it is used to such high volatility in China's stock market.

Fang Xinghai, vice chairman of the securities and Futures Commission, said in an interview with CNN in Davos that the world should be accustomed to the high volatility in the Chinese market.

Fang Xinghai also said: China's regulators plan to reduce market intervention and allow the market to fluctuate more freely.

Affected by this, the 21 day stock market fell nearly 100 points, showing a trend of "more free fluctuations".

Since Fang Xinghai made the above statement in Davos, whether there is a misrepresentation in the content of Fang Xinghai's speech remains to be clarified by the SFC later.

However, I understand and understand the Chinese stock market for more than 20 years and observe and think about it. The content reported by the media is obviously not good enough.

Personally, the role of regulators is not to "allow the market to fluctuate more freely", but to reduce the "more free volatility" of the stock market as far as possible.

After all, the current Chinese stock market is not mature, as Xiao Gang, chairman of the securities and Futures Commission, said at the national securities and futures supervision conference in 2016. "China's stock market is immature, immature traders, incomplete trading systems, imperfect market systems, and inappropriate regulatory systems, including loopholes in the supervision of the SFC."

It is not suited to supervision.

Therefore, in this case, it is more necessary for the regulator to "work hard to make up for the bad" rather than "reduce market intervention", or even do "hand in hand supervision" and let the market fluctuate more freely.

In order to reduce the "more free volatility of the market", this involves the protection of the interests of investors.

As Li Yuanchao, vice president of the state, said at the Davos forum 21, "over fluctuating market is speculative market, only a few people get the majority interest, but most people suffer losses."

Therefore, Li Yuanchao's speech not only speaks the voice of the country, but also tells the true meaning of the regulation, and also tells the voice of the vast number of investors.

After all, the stock market in any country can not protect the interests of investors, especially in the US stock market.

The protection of rights and interests has risen to the height of protecting the Wall Street, that is, the stock market's survival.

Not only that, it is also necessary to reduce the "more free fluctuation of the market", which is also a need to crack down on illegal activities.

The "free fluctuation" of the stock market is just a representation, and behind this appearance, there are many reasons for it.

For example, the herding effect of small and medium investors is one of the reasons for the high volatility of stock market, but this herd effect does not exclude the use of some ulterior motives.

If some institutions artificially suppress the stock index, or some ulterior motives suppress the market by issuing various rumors, this actually involves the problem of manipulating the market.

In this regard, regulators must be clear headed rather than blindly "get used to it".

In addition, reducing the "more volatile market" is also conducive to restraining the supervisors' words and deeds and increasing the responsibility of regulators to the market.

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In the history of "free fluctuation", sometimes the "free fluctuation" of the stock market is actually related to the improper remarks made by regulators and even some top officials.

It is also a constraint for regulators themselves to reduce the "market more freedom" as the responsibility of regulators.

If there is no such constraint, allowing the regulators to speak irresponsibly in an open place without restraint, this will inevitably exacerbate the "more volatile market".

In fact, in January 21st, the stock market fell nearly 100 points, which has been well commented on.

As a regulator, take this as a warning.