What Is The Best Way To Fight The IPO Market?

In recent times, the market competition surrounding IPO has become increasingly fierce.

On the one hand, based on the downturn in the A share market and the problems exposed by IPO, the party represented by Han Zhiguo appealed to slow down the IPO process and even stop IPO. On the other hand, some big V and mainstream securities media represented by economist Xiang Songzuo opposed IPO's suspension and stop, and advocated accelerating the pace of IPO, indicating that IPO had no effect on the stock market.

In the dispute between the two sides, the voice of speeding up the pace of IPO is obviously more loud.

But Han Zhiguo is obviously more supported by investors and become the spokesman of investors.

Even Liu Shiyu, chairman of the SFC, had to face up to Han Zhiguo's voice and specially invited Han Zhiguo to have lunch in May 24th.

And after this lunch, the SFC did slow down the pace of IPO.

In May 26th, the first application of 7 IPO companies was approved, less than 10 weeks before, and the number of IPO companies approved in June 2nd dropped to 4.

However, as the market objected to slowing down the IPO boom, the number of IPO companies issued by the SFC in June 9th rebounded sharply to 8, but still below 10 weekly under the "normalization" issue.

So, does IPO have any influence on the market situation? Or how do we view the impact of IPO on the stock market? In my view, the impact of IPO on the stock market is bound to exist. Denying this is not a realistic attitude, but also a denial of the law of supply and demand in the market.

The relationship between IPO and stock market is a supply and demand relationship.

In the case of certain market funds, the process of IPO is actually the process of increasing the supply of the market. The faster the IPO is, the more the issue will be, and the focus of the stock market will move downward.

This is a matter of supply and demand, and no one can deny it.

Of course, if we want to reduce the impact of IPO on the stock market, we must increase the strength of the demand side of the stock market, that is, introduce new investors to the stock market and introduce new funds, so as to match the increase of demand side with the increase of stock supply.

But now the stock market is faced with the fact that after the three stock market crash in the second half of 2015 to the beginning of 2016, investors' confidence was severely weakened, and the stock market simply did not recuperate.

Not only a large number of investors withdraw from the stock market, but also the size is not cash in.

The whole A share market suffered serious blood loss.

In this case, IPO has entered the accelerated release phase since the fourth quarter of last year. Especially since this year, IPO has entered the high-speed release stage, and the number of IPO companies approved and issued weekly is no less than 10.

In this way, how can the stock's center of gravity not move down? How can it be said that IPO has no effect on the stock market?

Nevertheless, we still can not believe that IPO has no effect on the stock market.

Because the impact of this IPO on the market is not only a diversion of funds, but also a very important factor, which is the psychological impact on investors.

As the market is sluggish, management still accelerates IPO, which seems to the investors that management only pays attention to financing rather than investment and completely disregards the gains and losses of investors.

As a result, such a practice can easily attack investors' confidence and lead investors to vote on the market, thereby exacerbating the decline of the market.

What is more important is that the current IPO system has significant flaws, which will bring huge risks to the stock market.

That is, IPO has become a production machine for restricted shares.

Because according to the current IPO system, any company issuing shares will bring to the market no less than three times the size of the initial tradable shares.

And the company's share capital reaches 400 million shares, the size of its restricted shares is 9 times the size of the first circulation shares.

These restricted shares will enter the market after one year or three years later.

Moreover, the cost of these restricted shares is very low.

Therefore, once these cheap restricted shares are sold out, the stock market will become the ATM for the restricted stock shareholders.

The impact on the market is enormous.

Now, the lifting of the first restricted stock sale in May, its share price has fallen by nearly 50%, so investors suffered heavy losses.

And the present

Investors are still afraid of such a IPO system, which is still producing lots of restricted shares.

This is also the cause of investors' fear of accelerating the issuance of IPO.

So investors opposed IPO to speed up the issue, hoping to slow down the pace of IPO and even stop IPO.

Of course, facing the accelerated issuance of IPO does not mean that all stocks will be destroyed.

For example, the current "beautiful 50" market, this is actually in the market downturn in the institutional investors holding the heating market.

However, despite the appearance of "beautiful 50", the market can not deny the negative impact of IPO issuance on the stock market.

After all, compared to "beautiful 50", "fatal 3000" represents the mainstream of the stock market, and represents the overwhelming majority of the stock market.

Destiny.

Therefore, from the point of view of regulation, regulators need to face squarely.

The negative impact on the stock market.

Especially when the stock market downturn, we must control the rhythm of IPO and slow down the impact of IPO on the stock market.

In fact, in the issue of the issue of IPO rhythm, management can completely link the IPO rhythm with the development of the market.

For example, the Shanghai Stock Index stops at IPO below 2500, and the average issuance of new shares is not more than 0.5 per day from 2500 to 3000, and every 500 point index is an interval.

That is, the index from 3000 to 3500 points, the average daily issuance of 1 shares, 3500 points to 4000 points, the average daily issuance of 1.5 shares, 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.

In terms of the long-term stability of the stock market, management must adjust the IPO system as soon as possible while adjusting the pace of IPO.

For example, through the revision of the securities law at present, we should improve the ownership structure of listed companies, and let listed companies bid farewell to the "dominance" situation, so that the stock market will no longer become the ATM of restricted shareholders.

If the shareholding ratio of the controlling shareholders is controlled within 33%, the proportion of the first circulation shares will be increased to 50%, so as to prevent the IPO from becoming the production machine of the restricted shares and slow down the impact on the market due to the reduction of major shareholders and other important shareholders after the IPO.

The perfection of the IPO system will also help to slow down the impact of IPO on the stock market.

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