Category: Money Tips Date: 2006-05-28
Recently, a stock market plummeted again and again 1000-point mark at stake. To see a record nine-year low in the Shenzhen Composite Index, four years ago, the high point is 665 points, today's low of only 235 points, or nearly 65%, if the Shanghai Composite Index has such a decline, then the current position has only 793 points a.
Data show that from June 9, 2005 to July 19, the Shanghai index was down 10%, but in all A shares in 1343, down less than 10% of only 376, less than 28% of the total. Another 72% of the stock average fell unexpectedly as high as 24.3%, which fell more than 30% of the stock had 232, while the rise in the stock during the period is only 144.
A small number of rising stocks are precisely the ongoing split share structure reform pilot varieties. In the second batch of pilot shares a month after its launch, in the broader market fell 5.5% (average of all stocks decline 9.5%) cases, 42 pilot enterprises have an average share price rose 5.5%. An anti-1 are two different worlds, people worry about.
Data shows that at the end of 2004, all shareholders of listed companies, a total of 60.16 million, while the top 300 best-performing companies, but the total number of shareholders of 10.75 million people, accounting for 17.8%. But rather is that the 300 most promising companies, but also have the ability to complete share reform. While the other 50 million investors may have to swallow bitter water in the share reform.
Say this is not alarmist talk. Some experts have suggested that in the two cities to establish G board index, able to complete the share reform into their columns, these companies qualify for refinancing and other treatment. Well, performance is poor, equity complex, there is no ability to complete share reform of enterprises, we should be labeled a "singled out" do? Hold these shares of a company many investors is not necessary to bear their own potential losses?
We can not ignore the fact, that is: the vast majority of listed companies come from the restructuring of state-owned enterprises, is very strong color through the amount of administrative examination and approval system, issuing approval system only after the issuance and listing. Today, these companies become the underperformance of the stock, so that holders of stock in how to do?
Thus, in the "National 9" has been enacted a year and a half, our stock market policy should be clear "to protect the interests of the vast majority of investors," and not just focus on a small number of blue chip stocks. That being the case, it is imperative is to stabilize investor confidence.
First, let underperformance share code resources into a net shell, strongly encourage the re-shedding. Joan China can learn from the source to the Zhongguancun High-tech conversion and the sea to the Kyrgyz electricity conversion of shares to participate in the shedding preferential treatment given to enterprises restructuring.
Second, all enterprises as early as possible guidance from the share trading reform, protecting the interests of shareholders of tradable shares.
Third, as soon as possible a clear B shares of the stock reform of the solution. In theory, the legal person shares in which market liquidity, they should be given what the market price of the public to be right. But the B-share market of special circumstances, a high degree of openness that under the administration has caused holders of B shares is mainly in the public loss. They also represent the majority of B shareholder interests should be protected. In the major shareholders are unlikely to give right price cases, management should be promoted as soon as possible A, B-share market the merger.
I believe that the only way to stabilize market expectations, in order to end the stock market vulnerable to an early resumption of market investment, financing and resource allocation functions.
