Liu Xiaobo: How To Improve The Regulatory System Of The Stock Market?

Financial market is a highly asymmetric information market, so regulation is still a problem worth studying.

Our regulatory system has been debated.

For example, in the stock market, from 90s to early twentieth Century, there was a big debate about how to improve the regulatory system of the stock market.

At that time, Gao Xiqing, a SFC, once put forward a very important view that there is a great defect in the regulation system of China's stock market.

That is to say, instead of putting the regulation on mandatory information disclosure system, it is put on substantive examination and approval, which makes the entire stock market become a rent-seeking arena.

The stock market should base itself on restoring market financing function, fully protecting investors' rights and interests, giving full play to the regulating function of market mechanism, strengthening the basic system construction such as issuing, delisting, and trading, strengthening market supervision, improving the quality of information disclosure, and cracking down on insider trading and stock price manipulation.

It can be seen that the stock market is indeed preparing for the reform of registration system and starting from the foundation.

Start from supervision.

In this sense, registration reform has not stopped but accelerated.

Only the central authorities see this matter very seriously and are determined to do well on the basis, so the final launch time is still hard to ascertain.

In the third Plenary Session of the 18th CPC Central Committee, we made a very correct decision on this issue. The former supervision should be shifted to the supervision of things in the middle and after the event. We should turn from supervision by examination and approval to regulatory compliance. In accordance with the rules, there are clear rules to deal with and reverse the violation of the rules.

Wu Jinglian is not only an important figure in China's economic circles today, but also has a legendary life experience. His parents and stepfathers are important figures in the history of Chinese journalism, and have a certain impact on the history of the Republic of China to new China.

Wu Jinglian's most important remarks on the stock market were the "casino theory" published in January 2001, when China's stock market broke out in big cases. When interviewed by CCTV, Wu Jinglian once said:

The stock market in China is so high that quite a few stocks have no investment value.

From a deeper perspective, the irregularities and illegal activities prevalent in the stock market make investors unable to return and become a speculative paradise.

Some foreigners say that China's stock market is very much like a casino, and it is very irregular.

There are rules in the casino, for example, you can't read others' cards.

And here, some people can see others' cards, cheat and cheat.

This activity can be said to be the peak.

Wu Jinglian's remarks were once generalized and summed up as "pushing back and Rethinking", and then triggered a nationwide discussion.

In February 2001, Li Yining, Xiao Zhuoji, Dong Fureng, Wu Xiaoqiu, Han Zhiguo and other 5 scholars held a symposium, responded and refuted Wu Jinglian's viewpoint, and led the discussion to the climax.

At that time, I was also asked to write a refutation of Wu Jinglian's viewpoint on his own paper media, and now I want to feel ashamed.

So why did Wu Jinglian bombard the stock market 15 years later? Is his view right? What background and what changes will it bring to China's stock market?

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In recent conversations, we can read out the following meanings:

1, Wu Jinglian implicitly mentioned the debate 15 years ago, and history has proved that his views were largely right.

Only from last year's "policy bull market" launch, advocacy, climax to collapse, rescue, can be confirmed.

In other words, in the past 15 years, China's stock market has increased by N times in addition to its market value.

Just because of the introduction of short selling mechanism and the emergence of procedural pactions and large area of capital allocation, retail investors were deprived of their property more rapidly and mercilessly.

2, he mentioned Gao Xi Qing's point of view.

Gao Xiqing is a bachelor's and master's degree of Beijing Institute of foreign trade, a Ph.D. in Duke University. He served as a lawyer at Wall Street. He served as the chief counsel of the China Securities Regulatory Commission, deputy director of the issue department and vice chairman of the securities and Futures Commission. In December 2013, at the Sanya financial international forum, Mr.

He said:

Just a few days ago, when the securities and Futures Commission was established, I felt that the power of issuance and approval of the SFC should not be released.

But someone told me not to say so, or if the SFC's rice bowls were smashed, I knew that the SFC had a problem with rice bowls.

Gao Xiqing's view is that the SFC should not have the power of examination and approval. This power should be handed over to the market. The main responsibility of the SFC is supervision.

His "rice bowl problem" of the SFC has vividly told us the essence of administrative examination and approval.

3, Wu Jinglian's "the third Plenary Session of the 18th CPC Central Committee made a very correct decision on this issue", referring to the IPO registration system reform, that is, the right to return the listing of enterprises to the enterprise, the stock market volatility of the right to return to the market.

Wu Jinglian and Gao Xiqing both made efforts to reform the registration system, and the registration system reform was written into the "deepening reform decision" adopted in the third Plenary Session of the 18th CPC Central Committee. However, the reform was delayed because of the policy bull market launched last year.

It can be seen that in May 9th, "authoritative personages" made a statement in the people's Daily that after the stock market, the real estate market and the foreign exchange market came back to their original meaning, some economists began to press ahead with the registration system reform. This idea is in line with the latest judgement of the higher authorities.

We might as well recapitulate the "authority" on the stock market:

But from the perspective of national strategy, it is necessary and inevitable to move forward from the "printing money era" (through the over issuance of money, the activation of real estate, and the advancement of urbanization) to the "printing stock era" (through the registration system reform, the approval system reform, the activation of public entrepreneurship and the innovation of millions of people).

Hopefully, the Chinese stock market will no longer have a "bull market", but will soon usher in a "bull market" through reform.