Category: Money Tips Date: 2007-01-08
Regulate the market VS Tube Index
China Securities Regulatory Commission on October 12, 1992 set up on the opportunity, indeed a bit like a volcano into the active stage, and quickly linked up their meaning.
Feisi Liang is the stock market was a lot of problems, Liu Hongru the scholar-officials, senior bankers and higher-order Why is the stock price changes, specifically Eurya out of the SFC's mission statement?
Into the specific context of government officials in order to understand try to figure out the logic of their thinking and behavior. This can not fail to mention three key words - stability, development, and reform. As the situation between the three emphases vary. At one time, is "stability overrides everything" in 1992 that "development is the last word." The development, it is necessary to deepen the reform talk. However, logically, and stability is the necessary environment for development and reform.
In the 20 years of economic reform, financial sector reform is a late start, capital is highly concentrated in state-owned banks. Taking into account this background, Liu Hongru the so-called surge in stock prices should not be allowed, we can not plummeted, can not help but rise not fall, it is easy to understand. The stock soared, going separate ways competing capital market, a lot of money does not come from individual investors, they did not so much money, only the types of enterprises can bring a lot of money, the money is a lot to come from banks. Bank itself through its trust company, securities firms enter the market. In this way, the risk of the stock market will accumulate in the banking system, once the reach the critical point, the stock market bubble may trigger financial crisis. Conversely, if the stock plunged, "shareholders," the loss is too large may cause social instability. Financial stability, social stability, will inevitably become one of China China Securities Regulatory Commission in charge of the securities industry, department heads top the industry's most bother thing.
So, you can understand why, in well-developed securities market is considered contrary to the spirit of administrative interference in the free market, but in the hands of China's securities market regulators, and so frequently used. In practice, the new shares issued is faster or slower frequency of some, time to market of new shares how the arrangements had to take into account the secondary market at that time his face is not good-looking.
In this case, requested the SFC to act as a good supervisory role, as a good "night watchman" to indeed a bit difficult one. Although the "possession index" will affect the normal development of the securities market, but in the prevailing economic system, situation, and perhaps is superior choice. The SFC's role is like an active volcano in the fire brigade, fire general good rescue, fire volcano how to save? Change the stock market is absolutely not a government agency can be brought under control. This role has been inherited from the embarrassment.
The Chinese stock market "traditional" seems to have become a kind of market, the human subconscious. Every active stock market, people want to ignore the existence of the SFC, and good grasp Quotes money; and once the market into a downturn, it is generally hoped that the Commission come forward in time to rescue the market.
On this issue, the third and the fourth term chairman Zhou Xiaochuan, chairman Zhou Zhengqing ideas have certain differences. After taking office once said Zhou Xiaochuan, the SFC under the new situation to adjust the functions, you can not control index as the objectives and directions. The current deputy director of the NPC Financial and Economic Committee of the Zhou Zhengqing continue to insist that we must make careful care of the market and proposed the establishment of the Stabilization Fund's policy ideas.
Obviously investors want to hear behind the phrase.
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