China'S Stock Market Has Never Been Able To Embody "People'S Character".

The market slumped again on Monday, despite a rebound in the following days, but structural divisions continued to intensify.

This week after the national financial work conference, the draft of the SFC's learning committee revealed two highlights: "the SFC must always maintain a sense of crisis of" ability panic "and" protect the legitimate rights and interests of investors, especially small and medium investors, "which is the embodiment of the people's nature in the supervision of capital market.

This is the two sticking point for regulators to reveal their supervisory work for the first time in the history of stock market after President Liu Shiyu took office and 27 years ago.

Here, we will draw a portrait of these two sticking points.

Stock market crisis and stock market crash have not been solved yet.

In the 8 consecutive years of global stock market, China's stock market, as a global "thriving" Chinese economy, has been in the world for many years.

The function of the capital market, which reflects the interests of the state and the interests of the people, fails in China.

And so far, problems are piled up.

This really gives regulators the sense of crisis of "ability panic".

Misreading the meaning of "increasing the proportion of direct financing".

In order to avoid the risk of bank loans caused by excessive indirect financing, international financial circles all emphasize increasing the proportion of direct financing, for example, the proportion of direct financing in the United States accounts for 70% of total financing.

But the problem is that regulators have misunderstood the meaning of "direct financing".

Nearly 90% of direct financing in the United States is to issue bonds, and to repay the principal and interest. The proportion of direct financing through the stock market is less than 20%.

Even in the bull market that has been in the US for 8 consecutive years, less than 150 new shares are issued each year.

However, China's financial regulators are not only afraid of the risks of indirect financing, but also do not want to borrow money from direct financing to finance corporate financing. They are afraid to repay their debts and cause bad debts.

Therefore, the risk spearhead is directed to a large number of new shares that can be easily exchanged for money and do not repay interest or dividends.

It is a rare expansion of stock market in the world.

The 200 year old stock market in the US has only 3700 stocks so far, compared with 3200 in the 27 year old Chinese stock market.

As a matter of fact, disaster relief is the first task after a rare stock disaster.

In the bear market, it is time for us to recuperate for a period of time. New shares should be delayed and less developed, so that the system and mechanism of the stock market can be perfected and the organism can gradually be recuperated and repaired.

However, in 2015 and 2016, only 247 and 227 new shares were issued each year, but in the first half of 2017, the number of new shares exceeded the sum of the previous two years, which was the most rapid expansion rate in history.

The regulators ignore the fact that the market is bearing capacity and the fact that investors are losing money. The normalization of IPO is a byword for the expansion of the great leap forward, and it also violates the minimum financial sense.

Mistakenly put forward "financial deleveraging".

In April this year, the new chairman of the CBRC took office, eager to make contributions and put forward "financial deleveraging".

In a week, 25 deleveraging documents were issued, and the CIRC and the SFC also competed in the "deleveraging" competition. The time limit was limited to the survey of outsourcing investment, channel business, financial products and information management products, which led to the 4 stock market crash.

Fortunately, the Politburo meeting promptly corrected and put forward "to prevent the risk of disposing of risks".

The national financial work conference held last weekend no longer referred to "financial deleveraging" instead of "economic leverage".

The term "financial leverage" is absurd.

The so-called finance has always been to increase leverage.

Especially when the crisis is coming, more leverage is needed.

For example, when the United States rescued the financial crisis, it launched the quantitative easing policy of QE1, QE2 and QE3. At the same time, it created a long-term bull market in the stock market and restored people's confidence.

However, when the leverage ratio is too high, we must use a safe and gradual way to reduce leverage a bit, and we must not leverage it.

The supervision of listed companies is severely ignored, dereliction of duty and dereliction of duty.

The quality of new shares is getting worse and worse, and the market is constantly changing.

In the first quarter of this year, there were 34 new shares.

After the IPO, it can't wait to refinance, invest blindly and even pfer assets to overseas investment.

After the listing of new shares, a large amount of capital is idle, and the reality is virtual.

For example, since 2016, 270 listed companies have purchased high returns of financial products, amounting to 1 trillion and 70 billion, accounting for 56.6% of new stock financing.

Of these, 8 listed companies cost more than 10 billion.

After the IPO, many of the major shareholders of the company do not want to make progress. They only want to create themes, make high delivery, raise stock prices and refinance.

Then we will wait until the lifting of the ban period.

In the first half of this year, there were 781 listed companies and 2278 holdings of shares, which drew 96 billion 260 million yuan, accounting for 76.8% of total IPO in the first half of the year.

After the listing of new shares, the circulation is only a small part, and the stock price is bound to be high, 3 times or 9 times the size of the current stock. After 1 years and 3 years, it will relentlessly throw into the market, so that hundreds of millions of retail investors will become more and more sophisticated, and wealth will continue to shrink.

The national team, which has information superiority and capital advantage, has repeatedly regarded small and medium investors as rivals.

For example, at the peak of last year's growth enterprise market, the national team made a big profit and cleared out small and medium sized stocks.

Subsequently, when the South car was merged with the Chinese stock market, the national team made a profit in the high position.

。

In April this year, the Xiong an concept stock rose for 6 consecutive trading days, and the national team made a profit in Beijing, Tianjin and Hebei.

As a result, the national team lost only 5% last year, and has made profits in the first quarter of this year, and has gained 78 billion 400 million in the two quarter.

With the huge profits of the huge allotment of new shares under the Internet, the national team, whose mission is to save the market, has not only solved the problem, but also made a lot of profit.

The rescue of the national team is only a mere formality. It is a great loss to the small and medium-sized investors.

Although the Shanghai Composite Index has recovered 3200 points now.

However, the majority of small and medium-sized investors hold 1800 gem, small and medium sized boards, and small and medium-sized stocks, which is lower than the price at 2638 o'clock in February 2016.

Contrary to the principle of free trading in the market, it violates the public position of the referee.

What to stir up the market, what should not stir fry, should embody the free paction principle, the supervision layer should not make the window guidance.

The reality is: continuous strong guidance of public opinion, against small and medium-sized investors, high-tech stocks, high growth stocks, asset restructuring stocks, venture capital, speculative preference, no "stir fry, stir fry new, stir fry, stir fry theme, stir fry concept, stir fry" and so on, emphasize buying big blue chip stock, buy 50 index component shares.

{page_break}

As a result, it led to the structural split of "beautiful 50" and "fatal 3000", so that the stock of large and medium-sized investors who had already been miserable enough to be seen had been chopped down again and again, and 70% or 80% of small and medium-sized stocks were everywhere.

The class action system strongly advocated by the market has not yet been listed below.

The market is full of fraudulent and information fraud companies. After irregularities were checked, the listed company violators were fined up to 600 thousand yuan and the huge profits swallowed up were no longer spitting out.

Because there is no class action system and economic compensation, the violation of listed companies is more and more daring.

Even if the company that announces the delisting is only a piece of paper, there is no way to make the fraudsters and violators to make institutional arrangements for the small and medium investors.

Sometimes changes in the system will fundamentally drive the market to produce chemical reactions. Although the views are different, the quarrel itself is conducive to market progress. Of course, we hope that there will be another reform, that is, the SFC can maintain enough neutrality, that is, the stock price should be reduced as much as possible and the purpose should be reduced, such as the purpose of financing, the market led stock market and the central bank led banks are totally different.

Since China is a practitioner of Keynes doctrine, it should be understood that negative emotions can lead the market to extremes, and wealth effects can sometimes achieve prosperity.

For example, good expectations can bring financing and enhance brand image, which can improve the performance of listed companies, while the performance improvement of listed companies can continue to drive the expected increase and share price rise.

But on the contrary, if management suggests that there is a risk in today's stock market, the price will fall, the funds will be further reduced, the financing will be reduced, the products will be unsalable and the reputation will be damaged. Then the Davies double kill will happen. The price performance will decline and finally will strengthen the anticipation. This is probably one of the reasons for the decline of the gem.

Therefore, some people call for supervision from the general manager of the securities company, because managing banks and managing the stock market requires different risk management methods, and banks are risk averse to prevent risks from lowering leverage.

And stock market risk prevention is a high risk preference by raising confidence.

What about the financing of the stock market? Following the natural and market rules, the short selling mechanism is often regarded as a poison.

But if they are short of state-owned enterprises, are you guilty or meritorious?

When the stock market crash fell to the 4 edition and the majority of investors were in deep water, recently, some people who held the group to warm up and scrambled the Shanghai Stock Index 50 issued a new argument: "in the future, only the Shanghai Stock Index 50 (50) and the Shanghai and Shenzhen 300 index (300), and the MSCI index (222) can rise and 90% stocks will be marginalized".

In this regard,

There should be strong sense of danger and guilt in "skill panic".

Fortunately, we finally heard this week that regulators should protect the interests of retail investors and reflect the "people's nature" of stock market regulation.

The SFC's Party committee's learning of the spirit of the national financial conference has brought new hope to the market, and the novelty is: "accelerating the restoration and purification of the capital market ecosystem", which means that the stock market crash should be restored as soon as possible, and out of the Chinese stock market, the vicious circle of the global bear and bear market.

"Pay more attention to the quality of listed companies", including the quality of new shares and the quality of listed companies through mergers and acquisitions.

"Further dredging and standardizing the entry of various kinds of funds

"Channel" means that instead of deleveraging the stock market and clearing all kinds of channel business funds, it has to open up channels and introduce new capital.

"Protecting the legitimate rights and interests of investors, especially small and medium investors, is a concrete manifestation of the people's nature in capital market supervision."

The "people's character" emphasized is the stock market in the 27 years, and the first time in China's public opinion propaganda since the founding of the people's Republic of China for 68 years.

If the new content of the SFC's learning conference can be truly implemented, then the Chinese stock market will take the long term track of the slow bull market.

For more information, please pay attention to the world clothing shoes and hats and Internet cafes.