A Shares Must Not Be Leveraged.

A shares fell sharply in 2015, but financing refinancing hit a new high.

According to Wind data, in addition to the cessation of the implementation of the case, a total of 890 listed companies issued a fixed increase plan in 2015, and the adjusted financing scale amounted to 27599 billion yuan.

In addition, in 2015, 586 listed companies completed private placement, with a scale of more than 12174 billion yuan.

The two sets of figures have reached a record high.

From January 1, 2014 to February 2, 2015, the total refinancing amount of A shares including private placement, public offering, rights issue and convertible bond issuance amounted to 790 billion 671 million yuan, which is about ten times the scale of IPO financing in the same period of 79 billion 91 million yuan.

In the market turmoil, it shows that regulators do not understand the market well enough to manipulate the market, and some of the regulators understand that insider trading can help them.

The most typical one is stock index futures, which has helped to fall and become a slaughterhouse. Overseas traders have gained more than a thousand times of proceeds through procedural trading, but they have not acted in the name of marketization. In fact, they are in the process of procrastination.

It can be compared with the previous warrants.

The same is true of fuses. Fusing is an internationally common means. In China, it has become a poison, manipulating the market and adding to the characteristics of skyrocketing and collapsing, making melting become a shock. We have a deeper understanding of the A shares' craziness and the power of big funds.

The A share market has no money in circulation, and the rate of return on investment is not as good as that of deposits.

Qian Jun, a finance professor at the Shanghai School of advanced finance, Shanghai Jiao Tong University, pointed out in the article "A shares must know the seven great truths" that although the investment scale of Chinese listed companies is larger than that of other developed and BRIC listed companies, the net income from the cash flow is smaller than that of developed countries (such as the United States) and other BRICs (such as Brazil and India).

The net cash flow level in recent years after the global financial crisis is even lower than that of Japanese companies with stagflation.

Explain the overall situation of Listed Companies in China

Low, in addition to eliminating poorly managed enterprises in overcapacity industries, one reason for explaining this phenomenon is that the funds of listed companies are "emptied" - when the major shareholders and related parties take more capital and assets from Listed Companies in various ways, the net cash flow of the company will be reduced.

Xiao Gang was in office for 35 months. He experienced a bull and a bear. The market value decreased from 23 trillion and 370 billion to 62 trillion and 750 billion, and then dropped to 40 trillion. Behind this data, some people became rich and some people became poor.

China

At present, absolute and absolute leverage is not allowed, nor can we be slaughtered by terrible innovations that are manipulated.

Taking the "change deadline" as a uniform caliber, the size of the 1175 listed companies in 2015 was not more than 456 billion 600 million yuan in 2015, which was more than doubled from 210 billion yuan in the same period last year, and at the same time, it hit a new high in the history of A shares.

That is to say, although 2015 is a year of turbulence, it is a bumper year for the financing of listed companies, and according to historical data, such a bumper harvest is not related to the performance of listed companies and the return on investment.

In such a market, the higher the lever and the more frenzied the market, the worse the outcome of ordinary investors will be.

Therefore, such a market must not be leveraged, especially with high leverage.

Although regulators have been deleveraging since then, they have underestimated the dynamics of leverage and the weakness of regulation.

In the insider trading market, it is fatal to add leverage to immature markets.