How Can We Combine IPO Issuance With Stock Market Stability?

The recent A share market continued to decline, of which three major indexes of Shenzhen stock market all fell sharply, of which the Shenzhen stock index fell 2.95%, the gem index fell 3.64%, the small and medium sized board fell 2.81%, and the three largest indexes fell to the low position of the stock market during the second half of 2015 to the beginning of 2016. Of course, in order to stabilize market expectations, it is necessary for management to make substantive reforms to the issuing system. The stock market can support the real economy in its power and support the financing of enterprises, but the stock market can not support money. The problem now is that the IPO system is not only a financing system, but also a money collection system.

What led to the collapse of the stock market? Of course, the reasons are manifold. But there is a very important reason for this, that is, the accelerated issuance of IPO. Since last November, IPO has obviously increased speed, and after entering 2017, ipo Further speed up, as of January 17th, the first 11 trading days in 2017, the number of new shares issued daily reached 3. This has brought enormous pressure to the market, especially to investors. The confidence of investors has been shaken and the stock market has dropped sharply.

Although there is a public opinion that IPO speed up the pace of issuance is conducive to the real economy, emphasizing the financing function is the most important function of the stock market, but this statement is obviously one-sided. Because of the function of the stock market, the stock market not only has the function of financing, but also has the function of investment. Investment function is also one of the basic functions of stock market. For a healthy developing stock market, the investment function and the financing function are equally important. We must not emphasize the financing function unilaterally and sacrifice the investment function. In fact, as early as the State Council issued the capital market "nine states" in February 2004, it stressed the importance of paying attention to the return on investment in the capital market. Effective measures should be taken to change the situation of "raising funds and paying less returns", so as to provide investors with the opportunity to share the fruits of economic growth and increase wealth. Therefore, the investment function of the stock market should not be abandoned.

Act as equity market To support the development of the real economy is the right thing to do, but to support the real economy, we must consider the affordability of the market. When the market is hot, it is possible to issue more new shares, but when the market is in a downturn, it is still crazy to sell shares, which is totally ignoring the affordability of the market. Like 3 stocks a day, more than 700 shares are issued every year. The frenzied degree of such stocks is unprecedented. As a result, the stock market is solely for financing, and the investment function has been trampled underfoot, so it is not surprising that investors' confidence has wavered. This practice is also a waste of effort, which is not conducive to the development of the stock market. Even from the perspective of IPO, it is also not conducive to the continuous progress of IPO.

Therefore, even if we support the real economy, we need to maintain stability in the stock market. For now, it is to slow down the pace of IPO. We should combine IPO issuance with stock market stability to stabilize investors' expectations of the market. If the issue of new shares is accelerated to allow investors to anticipate further decline in the stock market, such a market will naturally be difficult to stabilize.

How to combine IPO issuance with stock market stability? I believe that this combination is to link the quantity of IPO issue with the location of index. For example, the Shanghai composite index is below 3000, the average daily issuance of new shares is not more than 0.5; up to 500 points index is an interval, each interval increases 0.5 new issue quantity. Namely index From 3000 to 3500, there are 1 stocks per day, 3500 points to 4000 points per day, 1.5 shares per day, and so on. In this way, the issuance of new shares took account of the stability of the market as well as the explicit expectations of investors. What is particularly important is that under such a practice, management will not unilaterally pursue the issue of new shares. If managers want to issue more new shares, they must boost the stock market to achieve a "win-win" between financing and investment.

The amount of IPO financing is not large for every company listed on the market. What is really terrible is that the size of the IPO is non cash, because the size of the non cash amount is often several times that of IPO financing, so the stock market has become a cash withdrawal machine. And the size of non cash is obviously not a financing function of the stock market. The existence of this problem seriously hampers the play of the financing function of the stock market, which is a problem that the management must face up to. If this problem can be solved, the impact of IPO on the market will be greatly reduced, and the financing function of the market will also be strengthened.

For more information, please pay attention to the world clothing shoes and hats net report.