The Breakthrough Of Revitalizing A Shares Must Be Found.

Why did the Chinese stock market always bear the bull for 26 years? Why did the global stock market hit a new high before the financial crisis after 2009? Why did the Chinese stock market bear the crown all over the world? Why did the Chinese stock market launch the bull market for 11 months quickly and back to the starting point? Why did the stock market have to suspend the IPO for 10 times because of the stock market downturn in the 26 years? Why did the reform of the IPO system total 13 times, which still failed to change the ecology of the stock market, and continued to turn back? Why did the stock market suffer from 3 stock disasters in six months?

Apart from the disturbing factors of the recent registration system, I think the biggest sticking point of A shares is the imbalance of interests in the one or two market.

From the source point of view, from the date of issuing new shares, there are natural defects in the ownership structure: the shareholding ratio of large shareholders is 75%, while the shareholding ratio of public shareholders is 25%.

This has laid a curse on the problems of the stock market in the future: large shareholders are dominant, and the top ten shareholders have natural share advantages and cost advantages.

As long as we go public, we can create a group of billionaires overnight.

Owing to the small volume of new shares, the difficulty of signing the contract, the high value of the new shares, the high profits of the new shares, the large accumulation fund and the undistributed profits, the high potential of sending and pferring, and the market keen to stir up new ones, the location of the new shares is so high that they are frequently seventy or eighty yuan or one hundred or two hundred yuan.

This creates favorable conditions for large shareholders to further encrop on money: on the one hand, they can pull up hidden stock prices through many high pfers; on the other hand, they can encircling large sums of money through repeated high price and large scale refinancing; on the other hand, once the lifting of the ban period is reached, they will be able to cash in on high prices and seek huge profits.

5 recommendations were made:

1, we should firmly oppose the expansion of the great leap forward and strict control.

Rhythm.

The volume expansion of listed companies should be controlled by total amount.

There are only more than 5000 listed companies in the three major exchanges in the United States for more than 200 years, of which there are less than 4000 local listed companies.

And only 20 years of history of China's stock market, there are more than 2800 listed companies.

As a matter of fact, we should not take any advantage in seeking quantity, but we should strengthen the quality through mergers and acquisitions.

The annual expansion of new shares should be treated differently according to the national conditions and the market (bull market or bear market, strong or weak, abundant liquidity or scarcity).

Registration or approval system can not be a reason for IPO to accelerate or slow down.

As long as effective supervision is strengthened, the approval system may not be suitable for China's national conditions, for example, European countries still carry out the approval system.

The US stock market, which is much larger than China, has only 110 new shares in 2001-2012 years, and 179 and 261 respectively in 2013 and 2014. It has been the highest in the century, and it has been realized in the bull market atmosphere for 6 consecutive years in the United States.

China's IPO peak is in 2010 and 2011, even in the bear market, there were 347 new shares and 277 new shares, 96 new shares were issued in 2014, and 180 new shares were issued in 2015.

Considering that there have been three stock disasters in the past six months, it is advisable to issue 100 new shares in 2016.

2, reform the structure of listed companies according to the requirements of public companies.

That is to say, before listing, according to the requirements of corporate governance structure of the modern enterprise system, the proportion of the largest shareholder will be limited to 33%, and the shareholding ratio of the public shareholders will be greatly expanded to make it public.

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This will prevent the unreasonable phenomenon of a big and big shareholder from losing at the source.

3, we should strictly regulate the reduction of major shareholders.

In view of the current large shareholders' holdings, they frequently cause serious concern and unrest in the stock market. Drawing on the experience of the United States, we suggest further restrictions:

First, large shareholders, Tung, Jian and Gao must first predict the reduction plan in the financial quarterly before they can reduce their holdings. The information can only be reduced after three months.

Second, the largest shareholder, Dong, Jian, Gao every year through the two tier market, block trading platform, and other OTC pactions, the amount of reduction of shares should not exceed 1% of the issued shares.

Third, large shareholders, the total paction volume of directors, supervisors and high annual reduction shares should be submitted to the SFC for written applications if the total paction volume is greater than 500 thousand yuan or the paction volume is greater than 5000 shares.

4, more stringent conditions should be set for refinancing of listed companies.

First, after two years of IPO, it is only possible to apply for refinancing.

Second, the proportion of cash dividends paid to shareholders should not be less than 30% of the profits per year.

The interval between the third, second refinancing can not be less than two years.

Fourth, the price of refinancing is not determined according to the application plan submitted, but should be based on the stock price issued after the approval documents issued by the SFC. It should not be lower than 90% of the stock price in the first 20 days, so as to prevent the profits of listed companies and institutions from gaining huge profits and balance the interests of investors in the one or two tier market.

5, when the reduction ratio of controlling shareholders reaches 5%, approval from shareholders' meeting can only be continued.

Because the controlling shareholder's reduction behavior is also a major matter of listed companies.

In accordance with the requirements of the company law and the securities law, all major matters must be approved by the general meeting of shareholders before they can be implemented.

In my opinion, the most important points in the above 5 suggestions are first and fifth.

The first is the whole year.

In order to expand the pace of the market, and notify the public in advance of the market (for example, when the SFC announced in 2014 that no more than 100 new shares were issued during the year), institutions and investors could grasp the supply and demand relationship of the whole market in advance, make a correct and reasonable decision, and dare to invest boldly and boldly.

On the contrary, if the management is worried about the gains and losses and worries about the market, but the quantity of the new shares can not be increased again, and it is too bad for them to engage in blur strategies and engage in black box operations. Large funds will not come in. The result is likely to be counterproductive, and the market will remain depressed, even if the 100 can not be released.

The fifth is the most shocking force for large shareholders of listed companies. It is to test whether your new stock market has long-term growth. Large shareholders are really engaged in industry and long-term operation, or after they have listed the money, then they will run away with a single shot and cash in to find another way out.

The fifth item is also the most vigorous for the market. It can lift the fear of large investors' endless and endless reduction without delay, so as to enhance the belief of investment in the medium and long term, which is much better than other positive effects.

First and fifth, for management, undoubtedly found the key to solve the long-standing problem of the 26 years of China's stock market, and the crux of the accumulation of difficulties. It may become a breakthrough in the revitalization of China's stock market and the resumption of the slow forward.

The above 5 suggestions are the wisdom of many senior experts in stock market. I hope Chairman Liu can set a high profile, understand the public opinion, perfect the amendment, and adopt it as appropriate.

With the increasing number of listed companies, the number of 1050 companies before the share reform in 2005 has changed to 2800 now.

The market value of circulation is bigger and bigger, from the former 890 billion of share reform in June 2005 to 40 trillion now.

The vast majority of investors have long been deeply locked up, and the only risk free investors in the market and the big winners are the major shareholders of listed companies, including the top ten original shareholders.

Therefore, if the Chinese stock market wants to truly save the market, make the stock market able to maintain a long-term stability and attract investors to make long-term investment, create a win-win situation for all parties, and better serve the real economy, we must start with the major reform of the primary market and carry out major operations.