Guard against thebanker to manipulate rampant Money Tips

Category: Money tips Release Date: 2005-12-24

Hu Zhi up to 1500 points, after the stock market speculation on the apparent concentration of the atmosphere.

Disappear in a bear market in the past, various types of funds and private institutions are ready to make trouble, the market speculation malpractice. Backdoor, mergers and acquisitions, restructuring, concepts, themes ... ... similar to the news a lot lately, listed companies are also frequently announces stock transaction notice.

Since China's resumption of the stock market, the "PLAY" cultural fashion set more than a decade. To investigate the case as the beginning Yiankeji manipulation, "Iron Lady" Laura Cha had a fad for A-share market "supervision Storm", the "banker" manipulation impose fist. That time, "China's Zhuang Gu end times", "China's entry into post-Zhuanggu era" argument would break out.

Large four-year bear market brought the size of the "rules" have collapsed, and everything is Dunxing, but due to the breeding of the domestic stock market, "banker control", "insider trading" the soil has not fundamentally changed, so once again active in the market, these irregularities will rise again.

Delong and other private institutions as well as the collapse of the South, Min hair brokers such as the downfall time and again to tell us, "banker" the harmful effects of manipulating the stock market is not self-evident, it is not only a serious breach of the market, "Sangong" principle, has shaken the foundations of the market , so that the stock market become a "casino" and led to a lack of effectiveness of the entire capital market, unable to fully play to its resource allocation function, and even seriously disturbed the financial order, threatening the real economy and industrial development.

It can be said from the source to combat the "banker" manipulation and insider trading is also a A-share market out of the marginalization of the plight of out of the "irrational exuberance", and a permanent cure for international standards, especially in the post-tradable share reform in the context is even more urgent.

Currently, when a similar blue chip stocks such as G Moutai rose hundred dollars (right complex), similar to the G Po titanium such resources stocks soared tenfold after the limited stock of good stocks in the market in the shares suspended more than a year, the new the value of stocks has not yet appeared in large numbers before the macro-policy tightening in the context of the appeal of value investing appears to be growing weak. When large amounts of funds rush to the market but could not find a suitable investment opportunities, the "banker" will gain remote control.

Even such institutions as the public offer funds, according to statistics will also have 80 billion of new capital into the market, but who can guarantee that they will not take part in short-term speculation in order to fame and fortune? One can imagine, in the judicial and regulatory continued absence, the stock market to continue to lower the cost of non-compliance, the "banker" manipulation is bound to spread.

As a result, the first day of work arising from the international market beyond reasonable hype though, it does not a great surprise.

Regulators have been wary, if not promptly stopped the hype of the wind, the future equity-based incentives, inspired by full circulation, the existing regulatory system will be more difficult for the behavior of all the main stakeholders to create an effective constraint. Although we believe the SEHK and the SFC have sufficient technical means to get to the bottom so that the stock price manipulation case, but the historical experience tells us that these tools do not seem to be a good application.

At this point, I do not mean the regulators have too many accusations, but more is to explore the root causes to stop the "banker" to manipulate way.

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As we all know, the domestic brokerages are "PLAY" culture of the initiator, many brokerage firms not only personally involved in PLAY, but the vast majority of the market, "Makers" are available through brokers "Tractor" accounts to evade regulation. As long as you are a big, any securities business department are readily available to you dozens, hundreds or even thousands of "sub stores" account. Therefore, the securities account as real-name system has been in the industry is to contain the "banker" to manipulate the weapon.

June 1, 2002, the China Securities Depository and Clearing Co., Ltd. issued "securities account management rules," the official implementation of the "rules" a securities account and made off more stringent requirements, which emphasizes the natural commissioned agent accounts , we must provide a notarized copy of the book commissioned agent, an agent and a copy of a valid identity card.

However, this is a real sense of the real-name system is a far cry. Because, if the existing stock brokerage accounts do not conduct a thorough and effective clean-up, it is impossible to fundamentally put an end to "Tractor" account of the phenomenon; to open a securities account if the investor is still a window through the brokerage agent, it is impossible to block source of real-name system will be equally existed in name only.

The most radical solution might be by the China Securities Depository and Clearing Co. Ltd. to independently carry out a nationwide re-registration of a securities account, and request an equity investment from individual investors must account for himself to the China Securities Depository and Clearing Co., Ltd. directly institution or other independent third-party organizations to register. Of course, in practice there is very difficult. For example, do not come to the late registration of investors how to deal with? How can I monitor the registration process? However, I believe these difficulties will eventually be able to find a solution. As long as the regulators have enough determination, careful arrangements, will be the "banker" of the clean-up investigation work and account registration at the same time, we will be able to right the domestic securities market to a thoroughly cleansed and cleansing, and thus those hidden in the dark undesirable elements completely outside the clean-up appearance.

In addition to real-name system for securities transactions and strengthening routine monitoring will undoubtedly be indispensable. In this regard, people are more concerned about is this: who is watching the regulators? Suspected acts of manipulation, investors have the right to draw the regulatory investigation? Course of the investigation is timely public? Whether the findings of the hearing? In addition, the newly revised "Securities Law" clearly provides that insider trading, market manipulation caused losses to investors if the investors have the right to court to demand civil compensation, but the Supreme People's Court of the relevant judicial interpretation of existing requirements will only be accepted by misrepresentation caused by tort claims. In this regard, the upcoming new judicial interpretation should be considered to be revised.

For the non-standard "market maker" manipulative behavior, but perhaps the name of investors are still people under the banner of "Chinese characteristics", "emerging market" appeal on grounds of its lenient; management may also have to some extent by its active market psychology; majority of individual investors may be more complex feelings for the both hates and loves, and even to follow the trend is still hoping to win the short-term operations. Such psychological lack of long-term vision, indeed desirable nor.

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