"Mandatory Dividends" Will Help The Stock Market To Bid Farewell To The Money Market.

"Stock issuers and directors and executives reduce their cash holdings" are linked, requiring that the total cash dividends of listed companies "for ten consecutive years is no less than the direct financing of stock market", which means that listed companies must repay investors in cash dividends, which is conducive to draw a clear line with the "money market".

At the beginning of the year of the monkey, Liu Shuwei, an old friend of the Chinese stock market, proposed to the stock market "restore the basic functions of China's stock market".

The most important essence is to set two basic constraints for stock issuers and directors and executives to reduce cash holdings. First, the average annual dividend yield is not less than the risk-free return rate for ten consecutive years; the two is that the total cash dividends in the ten consecutive years are no less than the direct financing of the stock market.

Liu Shuwei's proposal has attracted wide attention from the market.

Personally, Liu Shuwei's proposal has important reference value for the healthy development of China's stock market, which is conducive to the Chinese stock market to bid farewell to the "money market".

Of course, it is not ruled out that some people will raise objections to Liu Shuwei's proposal: if the cash flow of enterprises is sufficient, what is the listing of enterprises? This view is widespread in the market, and it is actually the most justifiably strong reason for the Chinese stock market as a "money market".

Liu Shuwei's proposal is to bid farewell to the money market, because Liu Shuwei advocated "restoring the basic functions of China's stock market", which included the investment function of China's stock market.

Therefore, for Liu Shuwei's suggestion, we should not use the eyes of the money market to look at it, but look at it from the perspective of investment.

In this regard, Liu Shuwei's proposal is worth affirming.

Liu Shuwei's proposal is called "mandatory dividend" proposal by market participants.

Personally, I think this "mandatory dividend" proposal is not a simple repetition of the "mandatory dividend" system in the past market, but rather a deeper meaning.

Because in Liu Shuwei's proposal, this "mandatory dividend" is linked to the "stock issuers and directors' executives' cash holdings", which largely captured the seven inch of China's stock market.

Because for the current Chinese stock market, the reason why it is called the money market is one of the most important reasons, that is, the purpose of the listings of the issuers and the directors of the directors is to rush to the money rather than to repay the investors.

Liu Shuwei linked cash dividends to the "stock issuers and directors' executives' cash holdings" requirement.

"The total amount of cash dividends in ten consecutive years is no less than the amount of direct financing of the stock market", which means that listed companies must repay investors in cash dividends, which is conducive to drawing a clear line with the "money market".

The reason why Liu Shuwei's proposal is of reference value is that Liu Shuwei's proposal still needs to be perfected.

For example, "the total cash dividends in the ten consecutive years are not less than the total.

The amount of direct financing is still not precise.

Due to the unreasonable ownership structure of listed companies, more than 3/4 of the dividends in the cash dividends of listed companies are taken away by large shareholders and so on.

And direct financing is ultimately paid by the public shareholders.

Therefore, the total amount of cash dividends should refer specifically to the total cash dividends allocated to public investors.

Again, "

The statement of "reducing cash holdings by issuers" is rather vague.

The issuer refers to the listed company, but the listed company itself has no problem of reducing cash holdings.

As a behavior of collecting money, listed companies are mainly financing and refinancing.

Therefore, my understanding is "stock holders' cash holdings", which should refer to the financing and refinancing of listed companies.

This is in line with Liu Shuwei's proposal.

Of course, it does not exclude what Liu Shuwei said, "stock issuers' cash holdings" refers to the reduction of cash holdings by major shareholders.

If it means large shareholders' cash holdings, it is necessary to combine cash dividends with the financing and refinancing of listed companies.

Such a mandatory dividend is more practical.

In addition, my view is that only the dividend restriction is not enough for the large shareholders and the supervisor's reduction.

More measures must be taken to solve this problem.

For example, we should change the current "single dominant" ownership structure mode, reduce the size of non shareholding ratio, and stipulate that the shareholding of listed company's controlling shareholders will be reduced to 25% of the total share capital of the company, and the two tier market (including bulk trading) should not be allowed to reduce. It is stipulated that the number of large shareholders and directors of the board of supervisors should not exceed 1% of the total share capital of the company, and the total number of monthly holdings should not exceed 3% of the total share capital of the company.