"Flicker" And "Follow The Wind" Restructuring Have Become A Market Chronic Disease.

Since President Liu Shiyu took office, as he did in his duties, the new chairman's primary task is supervision. "Supervision by law, strict supervision and comprehensive supervision, only supervision can guarantee the smooth implementation of the reform measures".

President Liu's work over the past year has been "very simple": first, reform and two supervision.

As Liu Shiyu said, the chief task of the SFC is regulation. If there are still second tasks, it is supervision, and the third task is regulation. "This can not be vague or unwavering."

In 2016, the focus of "one line and three meetings" was to guard against financial risks.

This year, the SFC focuses on controlling leverage, regulating backdoor and major asset restructuring, cracking down on IPO fraud, severely punishing related agencies, limiting speculation and cracking down on insider trading, and further improving the information disclosure system.

This year, the SFC inspecting 20 typical cases of illegal activities, involving manipulation of the market, illegal issuance of IPO fraud and disclosure of information, illegal activities of intermediaries, private institutions, insider trading or the use of undisclosed information pactions.

To this end, the A share market has seen many chaos and many new problems have emerged.

(1) leverage stocks and leverage.

Over the past two or three years, from PE leveraged stocks to venture capital leveraged placards, mergers and acquisitions have become increasingly high-profile and unscruples. They are increasingly aggressive and rampant. They use the Internet financial channel to issue various high-risk financial products to the grass roots and cock wires, to raise funds in a disguised form, to collect money, and then to raise the stock market and to pledge shares, then to obtain mortgage loans from banks, then to continue to increase stock holdings in the stock market, and then to pledge, refinance, and constantly circulate, which eventually leads to the spread and spread of financial risks across the market and across industries. This not only endangers the national industry and national brand, but also disrupts the normal market order.

(2) cross border mergers and acquisitions, valuation manipulation and private placement.

Some listed companies give up their main businesses, do not do their jobs, have no intention of R & D innovation, play cross-border mergers and acquisitions, willful private placement, spend other people's money in acquiring other companies, and are too keen on "extension mergers and acquisitions".

Among them, the most typical case of cross-border mergers and acquisitions is that some listed companies manipulate through valuation and deliberately buy the movie companies with only a few stars at high price. As a result, billions of dollars are spent to acquire a shell and leather bag company, but in return they are hundreds of millions of celebrities.

(3) a large proportion of capital reserve fund will be converted into capital stock.

Some listed companies, in order to cooperate with the market hype, or to cooperate with large shareholders or large organizations to reduce their holdings, or to cooperate with the fixed increase in selling, they irresponsibly and willfully introduce the 10 capital plan of sending 10, 10 to 20, or even 10 to 30.

This is a very evil manipulation of stock prices.

(4) cattle scattered everywhere, new shares, small cap stocks bubble.

China's market is not bad money, because retail investors do not pay personal income tax, so more and more unidentified "cattle scattered" flooded the stock market, their capital scale tens of millions, even hundreds of millions of dollars, where the money comes from, how many levers, no one knows, but they dominate the fate of most small and medium-sized stocks: or even pull up the limit, or suddenly flicker, they are so capricious, no matter how rubbish the stock, they always have a way to single or partnership to push their share price to the world of bliss.

Is this a capital market that manipulate the boundless market?

At the beginning of December 2016, at the Congress of China Foundation Industry Association, President Liu was the first to launch "Biao" for barbaric mergers and acquisitions. I hope that asset managers will not be extravagant, but do not act as a goblin to stir up trouble.

Recently,

A series of abnormal phenomena have taken place. You have money, raise your cards and offer to buy listed companies. This is a positive challenge for some companies with imperfect governance structure.

However, the money you use for the wrong way is a leveraged buyout, a stranger from the doorway to a barbarian, and finally a robber in the industry.

This is the bottom line of challenging national financial laws and regulations, and also the bottom line of challenging professional ethics. This is the retrogression and loss of human nature and business ethics, and it is not financial innovation at all.

In February 10, 2017, the national securities and futures supervision conference was convened at the SFC organ.

President Liu summed up the regulatory concept of "steady progress" into "six stability and six progress".

Among them, "six stability" is the most important thing: marketization, rule of law, internationalization of the direction of reform does not deviate, this is the most stable.

The core tenet of "six in" is to enhance the ability of capital market to serve the real economy and national strategy. This is the most fundamental step.

At this annual work conference, President Liu pointed at the "capital predators". He said that capital markets would not allow capital predators to "call the wind and rain".

At the same time, he pointed out that IPO capacity expansion will normalize, and no longer linked to the stock index ups and downs.

At the meeting, he stressed that the exchange should give full play to the regulatory functions of the first line and take the supervision of members as the center.

On April 8, 2017, Liu Shiyu, chairman of the China Securities Regulatory Commission, attended the second member congress of China Association of listed companies and spoke.

First of all, he paid tribute to the listed companies who had long been focusing on the main business, innovating, caring and rewarding shareholders. He stressed that the listed companies should abandon short-sighted doctrine, focus on the main business, carry forward the spirit of craftsmen and become the vanguard of the industry, and do not take advantage of the financing function of the capital market to cross the border blindly.

The equity level of listed companies can not be too complicated, and the decision-making chain should not be too long. Otherwise, it will provide an opportunity for insider trading, profit pfer and capital flight.

He also stressed the importance of cash dividends in listed companies. Listed companies can not pay dividends on the basis of long-term development and decisions after the general meeting of shareholders.

In addition, he criticized the chaos in a series of markets: some listed companies made fraudulent financial practices, others used high delivery to encourage speculation in stock prices. Some "flicker style" and "follow suit" restructuring had become a chronic disease in the market.

Other listed companies do not have market competitiveness and main business at all. However, their large shareholders and directors of supervisors have raised their stock prices at a high level. They have been overweight or even reduced.

Heavy punches will be used to control market chaos, the punishment of the penalty, the delisting of the delisting, and the exit of the exit.

Whoever breaks the rules must pay him a heavy price.

In a short span of more than a year, from "goblin theory" to "catch rat and Wolf", from the side of the couch, he could not let anyone else snoring to the "capital market does not allow anyone to call on the wind and rain." Chairman Liu released a string of "hard words" and "strong recruitment", which fully reflects his deep hatred for the chaos in the capital market, and at the same time expressed his elimination.

Chaos and the determination and confidence of investors in a big sunny day.

Recently (April 15th), the Shenzhen stock exchange held the 2017 general meeting. This is a 20 year old time. The Shenzhen Stock Exchange once again held a general meeting, with the purpose of strengthening the front-line regulatory responsibilities of the exchange.

Liu Shiyu, chairman of the SFC, said all the entrants were subject to the supervision of the exchange, without exception.

At the meeting, Liu Shiyu, chairman of the securities and Futures Commission, emphasized: "the securities law" gives the exchange the power to regulate the market in all directions through rules.

The exchange must take the initiative to exercise an omnidirectional regulatory function in accordance with the law, including substantive supervision over the listing, delisting and merger and reorganization of the company, which is not the offside function of the exchange, but the place where the exchange is to perform its duties according to law.

For other intermediaries engaged in securities business, such as accounting firms, exchanges must be regulated and negotiable.

At the general meeting of the Shenzhen Stock Exchange in 2017, President Liu also made a remark to me: the function orientation of the exchange is keeping pace with the times with the development of the market economy. At present, it is far from the original location of the securities issuing and trading places.

After I went to the SFC, I spent most time studying and studying the securities law and other related laws and regulations, including combing the relevant provisions of the securities law to the exchanges.

I finally realized that the stock exchange is not only a statutory place for securities trading, but also a statutory regulatory body.

The second section of the third chapter of the securities law provides for the supervision of the listing and delisting of securities, giving the final decision of the exchange.

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The fifth chapter, the name of the stock exchange, consists of 20 articles, which clearly stipulates the organization and supervision function of the exchange.

For example, 114th and 115 stipulate the right of real time monitoring of securities trading, the right to restrict abnormal pactions, the supervision right of information disclosure of listed companies, and the right to decide on temporary suspension and suspension.

The connotation of this aspect is actually massive. The main responsibilities of the front-line regulation of exchanges are based on this.

It is worth noting that this is the second time in two months that President Liu emphasized in public: to strengthen the regulatory responsibilities of the stock exchange, the authority of substantive supervision of the stock exchange should be given.

Once upon a time, A shares IPO, mergers and acquisitions and delisting audits and supervision were all wrapped up by the SFC and fully responsible. The stock exchange became a purely trading service platform, with little effect of auditing and supervision.

However, under the background of registration system reform, the focus of market supervision needs to move downward. The SFC will gradually weaken the substantive examination and approval of IPO, mergers and acquisitions and delisting, and give the securities exchange the "full range" substantive audit and supervision responsibilities and authorities.

In doing so, we can restore the market attributes of IPO, mergers and acquisitions and delisting systems, and even liberate the SFC so that the SFC can get rid of the tedious "examination and approval" affairs and concentrate more time and energy on two major events. First, we should focus on market regulation, crack down on illegal securities crimes, focus on information fraud, stock price manipulation, insider trading, and protect small and medium investors. Two, we should focus on market reform, constantly promote institutional innovation and change, and constantly upgrade the ability and level of multi-level capital market to serve the real economy.

In fact, with the further deepening of anti-corruption work in the financial field, a storm of financial supervision has arrived.

Compared with traditional banking and insurance industry, the regulation of securities industry is more difficult and more difficult.

The purge of the securities market will help crack down on and effectively deter securities crimes and clean up the market, so as to fully remove obstacles and open the way for the registration system.

Of particular concern is that the securities law amendment will be carried out next week for "two reading".

This means that the basic framework and specific contents of the newly revised Securities Law will be widely understood. The omni-directional supervision, stereoscopic supervision and registration system reform of China's securities market will accelerate. This also means that the new life and new rules of the A share market are coming.

Barbarians use money that is not suitable for the road to buy leveraged buyouts. They turn from strangers at the door into barbarians and finally become robbers in industries.

This is a forward-looking warning. It is a precautionary plan for regulation. The purpose is to prevent capital damage to the real economy, prevent capital from being real and virtual, and allow the real economy to become hollow and financial turbulence.

Although the stock market mergers and acquisitions is an eternal theme, the capital market is still based on the real economy, rather than the capital stock buying and selling. Therefore, we should strictly prohibit the opaque acquisition of high bar stocks, prevent capital arbitrage, realize the irrational pfer of capital market, ease market volatility and prevent financial crisis.

Wei

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