Can Every IPO Suspension Play A Role In Boosting The Stock Market?

Since the SFC slowed down the pace of IPO in May 26th, the market has been revolting around the debate over the slowdown and suspension of IPO.

Not only did some financial V and big players become the main players in the debate, but even the mainstream securities media took part in hand to hand combat in person.

The high and intense specifications of the dispute are rare in the history of the A share market.

For the A share market, this debate may not be a bad thing.

Truth is not known.

Let the debating parties set facts, reason, and ultimately who is right or wrong. The market has its own views.

Although most of the small and medium investors in this dispute support IPO's slowing down and suspension, the voices of big V players are mostly opposed.

The emergence of this phenomenon is not surprising.

After all, the A share market is a naked interest market.

The policy orientation of the A share market directly determines the interest flows of the A share market.

Behind some of the big V players, there is no sign of interest groups.

The so-called buttocks decide the head, big V big players endorsement for interest groups, which is also the new normal of the A share market today.

IPO gates opened and gold rolled.

In the face of such spectacular events, interest groups certainly hope to make the IPO gate larger and speed up the pace of IPO.

But slowing down the pace of IPO and even suspending the issuance of IPO, it seems to the interest group that this is a great challenge.

Of course, it is intolerable.

From the public opinion of some big V leaders, the criticism of IPO slowing down and suspending is mainly concentrated in three aspects.

First, criticizing the slowdown and suspension of IPO is not in line with the principle of marketization. It is considered that the rhythm of IPO should be determined by the market.

In my opinion, this is a false question.

Because the A share market itself is not a market oriented market. At present, the A share market still lacks the market oriented soil.

The simplest problem is that marketization needs to be protected by legalization. However, the legalization of the A share market is almost blank.

The two is to advocate the stock market for financing services, financing function is the core function of the A share market, so the A share market needs to accelerate the pace of IPO.

But this statement is also a big problem.

Because even if IPO wants to finance services, even if the financing function is the core function of the A share market, the current IPO system is obviously not for financing, but for money collection.

IPO is not helping enterprises to become bigger and stronger. On the contrary, they are destroying excellent enterprises.

Because IPO has limited financing to enterprises, and a large amount of capital has been taken away by shareholders.

The amount of cash held by shareholders is ten times or even tens of times the financing of listed companies.

And after the shareholders have completed the cash flow through the listing of enterprises, they have thrown the enterprise aside and let it live and die.

The fast growing companies before listing will not grow even after listing, or even become mediocre companies or loss companies.

In the face of the pformation of these companies, the IPO system is actually a crime and a sinners of China's economic development.

The three is that the big V players are attacking IPO slowing down and pause. One important point is that IPO moratorium can not change the operation trend of the stock market. In other words, it can not really save the market.

For this point, some big V leaders are obviously one-sided and incorrect.

Looking back at the 9 IPO suspension in the history of A share market, there are still some changes.

The trend of operation occurs.

The suspension of the IPO in July 1994 has changed the downward trend of the stock market.

Like IPO, which was halted in May 2005, it then ushered in the biggest bull market in the A share market.

Another example is the IPO which was halted in September 2008, followed by a big rebound in the stock index doubled.

IPO, which was halted in July 2015, also made the A share market ushered in the first wave of rebound after the stock market crash, which contributed to preventing the evolution of the stock market from the systemic risk of the financial industry.

Therefore, in general, the IPO suspension in history has contributed positively to the market and should not be denied.

Of course, not every IPO suspension can play a role in boosting the stock market.

But this is because the A share market is hard to get back, but it does not mean that the pace of IPO should not slow down.

Moreover, in slowing down the pace of IPO or suspending the IPO, it can not boost the stock market, and continue to increase the intensity of IPO issuance. Is it not that A stocks get deeper and deeper in the quagmire? Therefore, even slowing down the IPO rhythm can not boost the stock market, which does not mean that the IPO rhythm can be further accelerated.

Just like a seriously ill patient, blood pfusion is not enough to restore his health immediately. On the contrary, it is necessary to increase the intensity of blood drawing. Is this not pushing the seriously ill patient to death?

In fact,

On the issue, some big V leaders, including authoritative media, are evading one of the most important problems, namely, the serious defects of the IPO system, so that the IPO is always in a state of "sick distribution".

In fact, the defects of the IPO system are obvious.

It is hard to believe that the big V players are not aware of this. They are only blinded by their interests, so that they are clearly confused.

At present, the problems existing in the IPO system are very obvious.

First, because of the ineffective punishment and the prevalence of fake listing, the two is that the consequences of the fake listing are damaged by the interests of investors, but the IPO system does not protect the interests of investors.

Three, the listing of any enterprise will bring the market not less than 3 times the initial circulation shares.

400 million listed companies with more than capital stock have brought 9 times restricted shares to the market.

The issue of new shares has become a production machine for restricted shares, and the stock market has become a cash machine for restricted stock shareholders.

This also makes IPO not for financing, but for the sale of shareholders.

The IPO system is also completely out of shape.

This problem is obviously the issue that the IPO must face up to. It is also a problem that big V leaders must face when they comment on the IPO issue.

Avoiding the institutional defects of IPO to promote the accelerated issuance of IPO, such advocates are clearly ulterior motives.

In the eyes of these advocates, they may be full of interests of interest groups, but they simply do not have the interests of the vast majority of investors and the fundamental interests of China's stock market.

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