Stock Market Outlook: Stock Market "Abandoned Like Garbage"

The rumors that the SFC will suspend the listing of shares in China's stock market is still in the balance. The stock market continued to fall sharply on Monday.

At the close of US stocks on Monday (May 9th), the century Internet plunged 24.01%, the unfamiliar street fell 15.84%, the reunion times fell 13.81%, Dangdang fell 13.28%, Qihoo 360 fell 11.32%.

Tencent technology reported in the report that the stock market was abandoned like garbage on Monday.

This is the third consecutive trading day in the US stock market suffered bloodbath.

From last Thursday to Monday this century, the total number of Internet connections dropped by 29%, while the unfamiliar street fell by 25%. The reunion era dropped 22%, Dangdang fell 21%, and the Qihoo 360 fell 14%.

If such a decline continues, the consequences will be unthinkable.

From now on, it is not yet seen that "stop" is good.

This is the biggest scam of China's stock market to overseas listing.

What is the reason? From the international market, especially the US market, although the bond market, futures market and commodity trading are all fluctuating, the stock market in Europe, especially in the United States, is basically stable.

From an index point of view, it often appears as a mixed situation.

Basically, it has little impact on the stock market.

Another factor is that Apple Corp's share price has also suffered a substantial decline due to factors such as declining sales.

However, although it is the same as the IT industry, the Apple Corp is quite different from the China stock exchange.

The fall of Apple Corp's share price has no effect on China's stock market.

Last Thursday, the market rumors that the securities and Futures Commission intends to suspend the listing of shares in mainland China, the stock return to the mainland, backdoor, reorganization, IPO may be restricted.

As news came out, the share price of the privatisation companies fell sharply in early trading, especially the biggest street in the arbitrage space, the highest decline was more than 15%.

This news has a direct impact on China's stock market.

Because, last year, the regulatory department has released news, welcomed the stock market return to China's A shares, and introduced some policy measures.

On the one hand, China's stock market has become more and more difficult in the US market. On the other hand, China has called for the mainland stock market to return to the Chinese market and allow mainland China to return to the mainland.

Share the dividends of China's IT technology industry.

some

We have started to privatize the cattle and sheep, and started the successful reorganization of the earlier enterprises.

In the past three years, 5 red chip companies that have been listed abroad have been listed on A shares through mergers and acquisitions.

If the rumor is true, then the stock is absolutely bad.

This requires the SFC to respond to clarification.

In response to hearsay, the securities and Futures Commission said on Friday that it has taken note of the relevant public opinion. Currently, the SFC is conducting an analysis and Study on the possible impact of such enterprises through IPO, merger and reorganization, and return to the A share market.

It shows that this rumor is not groundless.

The SFC's statement made the stock price of stocks ready to return to A shares continue to vibrate.

The SFC has sufficient reasons to study and analyze.

From abroad

After the merger and reorganization of the 5 red chip enterprises in the A share market, they questioned the market. It is considered that such enterprises have great particularities in returning to A shares, especially the obvious price difference between the inside and outside markets and the speculation of shell resources should be highly concerned.

There is indeed a case of fishing in troubled waters and speculation of shell resources.

Shell resources are so valuable that the discerning eye can see them.

Add 360 to add fuel to the fire, and hit the bottom.

Media reports said that the SFC and the 360 meeting required 360 if the A shareholders were backdoor, their major shareholders and employees, including the participating institutions, should commit themselves to accept the 6 year embargo period.

And 360 has to promise not to issue additional Internet assets in 6 years, 360 initially refuses, and still haggle with the SFC.

But then the Qihoo 360 said on official micro-blog that the rumors were inconsistent with the facts.

Whether or not it is, however, in a sensitive period, a rumor can be bad.

One lesson is that no matter how much attention the regulatory authorities have to the speculation of shell resources and how serious the problem of shell resources is, we need to think about it in terms of the system.

China's stock return has been publicized as the general trend, and the Chinese stock market has been preparing to return to privatization.

Abrupt stop now, it is absolutely bad for China.

The reason why China's A share is also bad is mainly that the policy is not predictable, that the change will change, stop and stop, the contusion of market confidence is serious, and the blow to investor confidence is great.

This is a great lesson.

The author reiterates that China's capital market and China's stock market must have a stable policy expectation and regulatory environment.

The predictable policy regulatory environment, the pparent internal mechanism of the market, and the stock market totally determined by the market mechanism have become increasingly urgent in this event.