Whether China's Stock Market Needs To Create A "National Bull Market"

At the recently held forum of "Boao Asia Forum", "the national bull market" was criticized by two Boao party members, including Li Jiange, vice chairman of the former securities and Futures Commission and Gao Xi Qing.

For Li Jiange and Gao Xi Qing, the voice of the two vice chairman of the former securities and Futures Commission, the market also came to the voice of criticism of Li Jiange and Gao Xi Qing.

For example, Liu Jipeng, President and professor of the Institute of Finance and finance of China University of Political Science and Law, and professor of the Postgraduate Tutor, came out: what is the crime of national cattle or reforming cattle? The former national development and Reform Commission senior researcher and CCTV special financial commentator Li several strokes also said with no fear: the responsibility of the stock market crash is not high. Li Jiange, you should not push it all to Xiao Gang.

Also called Gao Xi Qing and Li Jiange two as "belated", claiming that "you refuse to accept, try again."

You may not be as good as Xiaogang.

The views between the "Boao party" and "non Boao party" are very strong.

I think it is good to build a "bull market".

On the one hand, creating a "national bull market" can bring the money making effect to the market, which is in line with the interests of investors. On the other hand, building a "national bull market" can support the development of the real economy, which is also in line with national interests.

Especially in the economic downturn, there is a need for a strong capital market to support economic development.

It can be said that this round of "bull market" in the United States has set an example for China's stock market.

but

The stock market is not suitable for building a "national bull market".

There are many problems that are difficult to solve.

The first is the high valuation of the A share market.

Although the A share market is sometimes in a doldrums for a long time, the valuation of the A share market is not low.

Before the start of the bull market, take the data in June 30, 2014 as an example, although the Shanghai Composite Index has a price earnings ratio of only about 10 times, the average price earnings ratio of the small and medium-sized board companies has reached 33.5 times, and the average price earnings ratio of the gem has been more than 59 times.

Building a "national bull market" under such high valuation is easy to form a stock market bubble.

I quite agree with Li's ideas. Last year's responsibility for the stock market crash should not really be pushed to Xiao Gang.

To analyze the causes of stock disasters, we should be objective and comprehensive, and not take them out of context.

For example, to create the last round of "national bull market", at least is not the unilateral strength of the SFC, and the central mama is also an achievement.

In addition, the mainstream media, represented by the people's daily and Xinhua news agency, are actively promoting the "bull market". "The 4000 bull market is the only way to start" is one of the masterpieces.

Returning to the focus of debate between the two sides, the topic of "national bull market", what I want to discuss is whether China should create a "national bull market". Li Jiange thinks: bull market is a very dangerous concept.

And Liu Jipeng's point of view is tit for tat: what's wrong with national cattle or reforming cattle? I just want to express my views here.

Two, the A share market is too speculative, creating a "national bull market" can easily lead to speculative speculation in the market, or even "mad cow".

For example, the share price of all education and security information has been raised to more than 400 yuan.

And in this atmosphere of speculation, it is easy to trigger illegal behavior such as stock manipulation and insider trading, which will seriously damage the interests of investors.

Three, because of the imperfections of the stock market system, building a "national bull market" to support economic development is often reduced to the support of money.

For example, the high price IPO, high price refinancing, the size of non high price cash and reduce the tide.

And because the accelerated issuance of new shares has brought a continuous stream of size to the market, the stock market has intensified to become a place where the issuers, listed companies and shareholders of the original stock exchange money.

Based on the above problems, the A share market is not suitable for building a "national bull market".

This also reflects the problem of immature A share market and imperfect stock market system from another angle.

Furthermore, the immaturity of the A share market, especially the imperfections of the stock market system, has become a shackle for the development of China's stock market.