Category: Money tips Release Date: 2007-05-08
"6.8" market, in the WBC go after the temporary calm. However, the policy has mushroomed come good.
Recently, a listed company repurchase shares and the holdings of the controlling shareholder of the outstanding shares of listed companies at the same time open their floodgates. This may be a signal to guide the incremental funding through institutional innovation and the market, it will be an important weapon for management to stabilize the market.
For example, to allow listed companies to repurchase outstanding shares, not only for the legal market capital of listed companies opened the door, but also shut down the stock panic room. Inherent in the fund management companies are allowed to use funds to buy the fund, no doubt is to reduce the Fund's redemption pressure. Innovative pilot securities firms and the central bank intends to provide the expected re-lending, but also has to do more to broker a "forage."
Coincidentally, the great stock market crash in 1987, the U.S. government to provide loans to blue-chip companies, to encourage companies to buy back outstanding shares. In the "9.11" incident, the Federal Reserve to provide loans to market makers, to encourage investors to actively buy stocks on price stability.
The event of a liquidity crisis, regulators, and decisive intervention in the market, which is a sound system of the maturity of the stock market is no exception. As a "new + transition," characterized by Shenzhen and Shanghai stock market, good stability in the stock market through policy is to protect the legitimate rights and interests of small investors, a strong move. Because, in the most easily injured when the market panic, often there is a chase medium and small retail investors sell into habitual behavior.
Moreover, the rescue does not mean jack it up. Prop up the market is forced to maintain a higher index, the rescue is more in order to reduce market liquidity risk. However, the simple funds "rescue" policy is not a panacea for the bull market, more's role is to help the stock, "diarrhea."
Positive issued due to policy uncertainty, the big fluctuations in the stock market often. According to statistics, since December 18, 1996 to now, Shanghai and Shenzhen cities of more than 5% single-day gain in the number reached 15 times. However, the surge in emerging market system for the transition when the only way.
Inquiry system for IPO launch of the implementation of split share structure reform, as well as possible future introduction of stock index futures, which are changing the rules of the game change in the stock market will inevitably result in the volatility index. In contrast, mature system in the building of the stock market is not only sound, but also a high level of supervision, the system is relatively transparent process of being introduced, the impact on the index also relatively small.
At the same time, if you want to solve the system of defects in Shenzhen and Shanghai stock markets, such as the governance structure of market players has not been standardized, market structure and function are not perfect, are often brought about the market pain. If there is no corresponding favorable policies to protect the reform process is likely to be a drag on the stock market downturn.
"Country 9" clear requirements of the capital markets, market-oriented reforms, we should "insist on reform, the speed of development and the market can withstand the degree of unity", which means that "talk about regulation, regardless of index" regulatory way, divorced from the actual situation of Shenzhen and Shanghai stock markets.
Today, there are still people stick to the "rescue the victims is a city" that only create a "perfect market", is the sole responsibility of the regulator. The reality is that tape once fell below 1000 points, the stock market is still not perfect. Who can guarantee that after the market fell 700 points on the "perfect" out? In the Shenzhen and Shanghai stock market as "Excellencies," the market prior to the collapse of the management is turning a blind eye on the stock market do?
Due to lack of investors and financiers to balance between the interests of the mechanism, the management in the split share structure reform launched, suspended IPOs and refinancing behavior. Due to lack of stock index futures markets are correcting mechanism in the market, unable to save themselves, the Government has reason to correct market irrational shot down. Although the visible hand of the market trends will not necessarily bring about a turning point, but it can be extended or shortened to run the stock market cycle.
If we say that in 1999, "5.19" big bull market cycle after the extension was administrative intervention, then, in June 2001 since the bear market cycle, is because the Government has extended the implementation of institutional change. Now, institutional change is facing a major turn, may mean that the arrival of the stock market turn.
Shenzhen and Shanghai stock markets to form a major turning point, need to quality of listed companies, institutional change and the stock market regulatory standards are the cornerstone of the synchronization transition. At present, the management of change through the system to do more the stock market signals is obvious, this is undoubtedly a long-term bullish for the stock market's foundation.
