The A Share Market Also Needs More Substantive Protection Measures.

The appropriate measures for the management of securities and futures investors are of positive significance, but there is also room for improvement. I believe that the introduction of class action system and other proven measures that can effectively protect investors' interests can be considered in the mature market.

The measures for the appropriateness of securities and futures investors will be formally implemented in July 1st.

This management method is the first rule of investor protection in China's securities and futures market. It not only clarifies the responsibility of securities operation institutions, but also enables investors to buy suitable products by classifying investors so as to protect investors.

Obviously,

The investor's appropriateness management method is a basic system in the capital market. The construction of this basic system has positive significance for the long-term development of China's stock market.

However, for the protection of investors, although the management method is a special rule of investor protection, this protection is the most basic protection. In view of the current situation of China's stock market, the protection is limited.

For example, for qualified investors to buy qualified products, the management method actually did not cut off the channels for unqualified investors to buy high-risk products.

According to the management method, if investors take the initiative to purchase products whose risk level is higher than their risk bearing capacity, they can still sell products to them after special risk warning procedures.

The right to buy and sell shares will not be affected.

From the perspective of investor protection, there is no mandatory threshold restriction, which is likely to lead to "qualified investors buying qualified products" in a mere formality.

For example, investment faced by qualified investors.

The question is, if there is an event that harms the interests of investors, is it necessary to protect the interests of these "qualified investors"? After all, qualified investors buy qualified products does not mean that they do not assume investment risk, nor does it mean that there will be no harm to investors' interests.

Therefore, even if qualified investors buy qualified products, they also need to face deeper issues of investor protection instead of saying that "qualified investors" can shoulder greater investment risks.

Therefore, although the securities and futures investors' appropriateness management method is the first rule of investor protection in China's securities and futures market, A share market needs more substantive protection measures to protect investors.

I believe that at least three measures.

First of all, it is necessary to further improve the A share market related system.

Because of the imperfections of the system, the interests of investors are everywhere, which is common in the A share market.

For example, investor protection of Xintai electric fraud.

According to the compensation scheme announced by Xingye securities, investors who bought Xintai electric stock after December 11, 2015 are not in the range of compensation.

But Xintai electric stock has not stopped trading since December 11, 2015, which means that investors who buy Xintai electric stock from this day will not get the payment.

Buyer's conceit is right, but due to the unreasonable system of suspension, it leads to the failure of the Xintai electric delisting in the implementation process to effectively protect the interests of investors, but to pfer the losses that have occurred.

Conversely, if the suspension system is reasonable, and from December 11, 2015 onwards, Xintai Electric will be suspended for a long time, then this kind of damage will not happen.

Second, we must deter the illegal and criminal acts through strict law and order, so as to reduce the events that harm the interests of investors.

In the US stock market, listed companies dare not easily violate the law, because the US stock market draconian law has increased the illegal cost of the counterfeiters.

The main reason for the rampant violations of the A share market is that the current securities law is not enough enough to create a profit seeking space for criminals.

Like the green land and the Wanfu branch, the original protagonists and controlling shareholders were sentenced, but they did become billionaires because of fraud. This has become a hidden inspiration for fraud.

In addition, there are no lack of nominal measures to protect investors' interests in the A share market, but these measures are hardly effective.

For example, the share repurchase measures issued by IPO fraud is a measure that can protect the interests of investors, but this measure is not guaranteed. If the listed company fails to implement it, it can not be implemented and even protect investors.

For another example, the advance compensation system failed to accommodate all shareholders in circulation.

I believe that on the issue of investor protection, the most important thing is the introduction of class action system, which is proven to be an effective measure to protect investors' interests by mature offshore markets.

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