Moderate Acceleration Of IPO Is Not A Problem.

Last year, when communicating with all sides, it was considered that the self repair of capital market was better than expected after the abnormal fluctuations of stock market in 2015. It has the right and proper conditions to increase IPO.

In line with the market mechanism, market rules and market demand, last year, we intensified the IPO audit of capital market and increased the supply of Listed Companies in the capital market.

Indeed, from the point of view of index performance, the current acceleration of IPO is not a problem.

Mark index composite index, since the 16 point in October 24th, 3100 points, although the index fluctuated, but basically in the 3100 index above the operation, 17 years in January 16th touches the bottom, the stock index once again came out of the robust rebound trend, last week five reported 3253.43 points, up 0.06%, and the market hot wheels are also very orderly, infrastructure building materials and financial three swordsman, mixed change theme between the more tacit rotation, also ensure that the index did not fall, from the recent market, the market can always find a hot plate, let the stock index steady step up, very consistent with the management of the slow moving trend.

As for gem, it also began to rebound slowly from 1783.74 points.

The so-called "calm and smooth sailing", the practice of China's capital market for many years has proved that without any stable market environment, any reform can not be pushed forward. The overweight IPO will become an extravagant hope and will be questioned as a market for money. At present, the stable operation of the market environment has won good opportunities for the normalization reform of IPO.

It is especially important to benefit from the issuing mechanism of new shares. The IPO adopts the low price low price earnings ratio issuing mechanism, and the interest is tilted to the two tier market. The effect of new shares is often overflowing, and the demand for new shares has always been more vigorous. It has always been a hard demand. The winning rate has always been very low, which is basically tens of thousands and even tens of zeros. It also provides a good foundation for issuing new shares moderately.

The index performance is commendable and smooth, and the demand for new shares is strong. Indeed, it provides good conditions for IPO to accelerate moderately. In line with the strong appeal of the capital market to support the real economy, management has every reason to increase IPO. However, the old saying is "good Lord and good minister, although it does not forget its worries". Now though it is a good time to accelerate IPO, if we do not change the malpractice of China's stock market system, the adverse consequences of overweight IPO will surely burst out, allowing investors to reconsider the allocation of market investment, so that IPO reform will return to the old road.

At present, China's new shares issue 400 million shares less than 25% shares, and 400 million shares issue 10% shares. The listed companies are pinching points to ensure maximum profits. This creates a huge problem, that is, the market will issue at least 4 times the shares of restricted shares, which means that the size of the public offering shares will be 4 times larger than that of the restricted shares. The size of the shares will increase rapidly, and the old restricted stocks will not be effectively digested. After 1-3 years, the new restricted stock will soon be lifted, and with the rapid pace of IPO, the restricted shares will also be lifted with the amount of days. In China, the lifting of the ban means selling.

Indeed, the size of non reduction cash is a problem that can not be overlooked. It has become a blood pumping channel that exceeds IPO. It also seriously hurts the confidence of investors. Large scale reduction often leads to a sharp drop in share prices. Sina's reprinted media articles show that during 2012 to 2016, the total reduction of important shareholders was 71 billion 118 million yuan, 160 billion 749 million yuan, 250 billion 933 million yuan, 548 billion 45 million yuan, and 359 billion 446 million yuan respectively.

In 2013 and 2015, the total reduction has doubled.

The number of important shareholders has also increased rapidly, from 4463 in 2012 to 8318 in 2016. In 2014, the number of important shareholders has been reduced by over 10000. Accordingly, the average number of daily Holdings has exceeded 40.

The average daily reduction of important shareholders reached 2 billion 246 million yuan in 2015, which was nearly 8 times higher than the 293 million yuan in 2012.

In fact, in 2014, the average daily reduction of A shareholders was more than 1 billion yuan. After the peak of 2015, the average daily reduction in 2016 dropped to 1 billion 473 million yuan.

Statistics show that in 2016, there were 965 major shareholders with a single billion yuan reduction, compared with 2014, an increase of over 60%.

Such a reduction is shocking!

There are many reasons for the reduction of the size of the stock market. One is that some strategic investors are the interests of the people themselves. The only purpose of participating in the listed companies is arbitrage. Therefore, once the lifting of the ban is naturally done for security, the second is that many listed companies themselves are listed through the fake market. Naturally, they need to cash in before the east window incident. Clearing up and reducing Holdings has become a glare word. Avoiding the clearance and reduction of the listed companies is the focus of policy attention. Three, the overestimation of structural value is also a factor that can not be ignored. Four, many companies are listed on the stock market in order to increase their value.

The five is the dominance of a large shareholder. The proportion of large shareholders is very high. Even if the shares are reduced, the holding will remain unchanged.

Therefore, the formulation of new reduction rules is a pressing matter of the moment. It is impossible for the market to undertake hundreds of billions of Yuan reduction and blood collection every year. The market is facing unreasonable coverage every day. It is also unreasonable to let the capital market support the real economy. It is just an irrational pfer of wealth.

At the same time, it is necessary to completely break the dominance of a single company. The root of the interests of small and medium-sized investors that the listed companies are embezzling the interests of shareholders is the biggest obstacle to the governance of the modern corporate system. Large shareholders make the listed company become a controlling company through controlling the high purchase, low sale, illegal guarantee, capital occupation and related pactions.

The ATM can not change the board of directors, and the corporate governance structure can not be perfected. The legalization, pparency, and impartiality of corporate governance can not be addressed. The protection of the legitimate interests of small investors can not be mentioned.

Short term capacity of the capital market can not be unlimited expansion, the SFC opened the import valve, moderately overweight IPO, then we should open the water outlet valve and increase the construction of the delisting system. The normalization of new stock must be supplemented by the normalization of the delisting system, institutionalization of legalization, and the completion of metabolism.

The reason why the US market has opened up widely is the perfection of the delisting system. The proportion of 5-7% delisting is maintained every year. In China, even if 2 companies are forced to withdraw from the market within 16 years of strengthening the delisting system, such a proportion is not satisfactory.

There is no delisting system, the stock market can only be mixed up, become a garbage dump, plus merger and reorganization expectations, the market often staged bad money to drive out the tragedy of good money, the market also lost the price discovery function and become an inefficient market. Bulk listing can only be accompanied by bulk market retreat, so that the market can achieve the survival of the fittest to achieve resources.

Only in this way can we keep our youthful vigour and attract capital to enter.

It is imperative to make compensation for counterfeiting, compensation for all kinds of delisting, compensation for false claims, manipulation of market, compensation for market manipulation, improvement of judicial interpretation, introduction of class action mechanism, cancellation of precondition and implementation of evidence, which are essential for investors' claims. Only when investors' interests are maximized can investors recognize the investment function of the capital market. Otherwise, investors will always lose their legal interests. Sooner or later, they will abandon the capital market. Without the participation of vast numbers of investors, the capital market will become a highly competitive market, and will be marginalized. Capital will go around the stock market. When that time, the financing function will be weakened, and the capital market will not support the real economy. A healthy market requires a large number of investors to participate. Therefore, bulk IPO means protecting investors' responsibilities more urgent.

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