Junk Stocks Can Not Be Zero. The Valuation Of Chinese Listed Companies Is Still High.

Many retail investors are willing to sing praises for speculation writers, the reason is that there is a luckily psychology of getting rich overnight.

The problem is that even if you earn money today, there will be countless people losing money. You earn today, and you will lose even tomorrow.

As a whole, the game between retail investors and speculators will always be losers.

At this point, if the market regulators do not intervene, a big hype will harvest the leek. How can this market have hope?

It must be pointed out that the valuation of China's listed companies is still high.

Since 1994, the median rule of China's all listed companies has shown that a median bull market return to 2 will usher in a long bull market.

However, any market that is close to or over 6 will be subjected to the frenzied Revenge of the market. The long time share price decline will restore the index to a low point again.

Now, the figure is 3.7, which is neither high nor low. It may rise or fall.

However, if the size of stock is not restricted, the stock market will only fall one way.

The stock market is down and investors are losing wealth. No one wants to see such a scenario.

What do I do? I think the way of limiting the reduction by the SFC is good, but it is worth further revising.

I suggest adding one: anything.

If the stock is to be reduced, the net profit after deducting the non recurring gains and losses will only be implemented after a new high of 5 years, and the reduction of shares should not exceed 1% within one year after implementation.

After the completion of the year, if the reduction is implemented again, the net profit should continue to reach a new high of five years.

If this is added, it means that all the executives and shareholders of the listed companies do not expect the performance to be bad, the stock price will fall and the stock will be reduced.

As a result, the short driving force from large shareholders disappeared instantly, and the interests of all shareholders will be consistent: the listed companies must be done well.

If not, it can not be allowed.

Simply return to zero, can not learn the United States system, so that listed companies simply withdraw from the market.

Delisting, the ultimate injury is all investors.

Therefore, the Chinese stock market should set up a system that severely punish the loss of the listed companies. If you don't go public, you must be responsible to the investors. If the listed companies lose their profits, large shareholders and management should bear unlimited joint and several liabilities, so that they can repay the original capital and interest, until they are bankrupt.

There is nothing wrong with the corporate governance of countries around the world, which was gradually explored after World War II.

In China's securities market, it is entirely possible to set up a rule different from other countries.

Because we are not capitalist countries, it should reflect the importance of protecting investors.

At the same time, we should further improve the mechanism of the investor protection center's participation in the voting of listed companies, and give the investor protection center the unlimited recourse and litigation rights: if any,

If executives or shareholders infringe on the interests of listed companies, the insurance center will act on behalf of all shareholders to implement class action, and then compensate all the minority shareholders after winning the lawsuit.

If this can be done, then there will be no more speculation in the market, and the price of junk stocks will return to 0. After the IPO, the price will become reasonable and no speculation is made, and the issue of new shares will no longer be a pressure. The new share issuing system may be implemented, and the new stock market will be eliminated. The good enterprises will not have to queue up and be able to go public directly. The overall quality of the market will be improved. No enterprise will go back to the idea of backdoor listing. The garbage enterprises will be returned to zero. The responsible person will be punished. There is no alternative but to Huashan.

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