Category: Money Tips Date: 2006-03-20
Author: East China Normal Business and Economic Development Institute Zhilin Li (Tadatoki), Dr.
Although the Shang Fulin, Chairman of the SFC in order to "open bow does not go back to Arrow," "basically stable operation of the market" to embolden the pilot for the stock split. However, since April 12 announced the stock split during 1253 about the essay points to May 27 1051, the index actually Diediao 16% more than the average stock price fell more than 20%, forcing large-cap stocks A + H distribution model, starter, an additional issue, allotment can not be implemented, which is the market parties are unwilling to see and can not be accepted.
Repeated the recent stock market decline, the market most of the "price of structural adjustment", "shake the valuation of the Fund System", "New insufficient funds" to explain. I think that the collapse of the source of cover for the SFC's "pilot notification" to unilaterally change the rules of the game is the vast number of investors who imposed the "unequal treaties", it led to market "the stock with their feet."
1, with the Pan-market doctrine to shirk its responsibility for the executive branch. China's stock market 15-year history, the 2 / 3 of the reason why the state-owned legal person shares shares converted into shares for 1 yuan, while the circulation of the reason why the shareholders by a few dollars, a dozen yuan, or even tens of dollars on subscription, secondary market investors reason to use a higher cost of investments are not in circulation as a prerequisite for the former, which in fact has become the administrative regulations and contracts. Today, the management to break down the split share structure problem, changing the rules of the game, so that the right of access to liquidity in non-tradable shares, has given up its administrative responsibilities, blindly advocate a market-oriented means. This in itself is not in line with the Chinese government under the guidance of the characteristics and principles of a market economy, is a pan-market doctrine will inevitably lead to anarchy and loss of control situation.
Second, from the benefit side out of the program, so that a loss of side passive acceptance. Logically, the cost of 1 yuan benefit of the non-tradable shares of one party wants to change the rules of the game the right of access to the circulation should be more than a dozen yuan costs, loss of numerous to mention one of the outstanding shares of the conditions out of the program, and then to consult the parties to negotiate the final compromise to form a right price. However, the "pilot notification" only to the flow of shareholder voting rights, deprive them of their rights and bargaining proposals, instead letting non-tradable shareholders, board of directors of listed companies unilaterally drawn by the program, to pay shareholders a vote when the threat is not quite similar to the large businesses will pay consumers to sign the same form contract, in fact so that consumers at the time of conclusion of the contract position of passive acceptance is a serious harm to legitimate interests of consumers.
Third, with the right to vote, denied the shareholders the right to participate in circulation. In theory, the pilot's board of directors should not be released to the circulation of the shareholders of the program, but only an offer. Circulation of the shareholders should be given some time (at least 15 days) to offer a revised proposal, after full consultation, and finally reach a mutually acceptable to the price of the program - contract, and then pay shareholder meeting to vote on. However, the current four pilot projects will be in circulation before the vote of shareholders the right to participate all the deprivation. Although the four pilot stocks rose to varying degrees, but by the flooding or for a small profit, or out of frustration, it does not reflect public opinion, while the index and the shares continue to drop while the majority is deprived of the right to participate is a protest before is the touchstone of success or failure of the pilot.
Fourth, from a single broker to help in the pilot program to replace the professional negotiations. At present, any one shareholder of listed companies are more dispersed distribution, age, mainly to middle-aged, uneven market awareness, while the pilot program's procedural requirements are more ordinary investors can not immediately adapt to. Therefore, lawyers, accountants, analysts, brokers, consulting firms and other professionals should play the role of the professional influence. For example, a listed company after years of operation, Dividend Information, issuance of the final forming of the market, etc. What is the value? The number of non-tradable shareholders of profits, loss of circulation of the number of shareholders? How to quantify the various types of shareholders to calculate the net assets of listed companies the formation of the profitability of the formation of the core competitiveness of the contribution of the formation of such areas? flow right price is reasonable? flow schedule appropriate? these quantitative calculations depends on the active participation of professionals has become an important basis for the negotiations, they would not have been non - circulation of the shareholders random fool trouble. In addition, professionals can also be commissioned by the shareholders to accept the circulation on the non-tradable shareholders, the offer to solicit the views of, quantitative calculations, and participate in the negotiations with the non-tradable shareholders, and through media propaganda, just, fair and open manner embody the "right price" nature. However, it is still not in the four pilot program to see more scientific and democratic decision-making, consultation, and shadow.
5, with the change of shareholders, old and new flow of votes through the program. "National nine" states that "the interests of investors in particular to protect the public" should refer to the flow before the introduction of conservation programs shareholders. To this end, once the pilot program introduced, the company should be suspended until the general meeting of shareholders to vote on the program so far. But now the practice is that the program can continue after the introduction of trading, dissatisfaction with the old shareholders who angrily leave the flesh, and the new shareholders directed at 10 to send the difference between 3 and buy the shares does not exclude non-tradable shareholders, related parties , as well as listed companies, investors buy shares on behalf of others, or through internal consultations with the large circulation of shareholders, change the program, buying at a lower cost largest holding of the fund support, which pulled 2 / 3 in favor, with pseudo-democracy program, adopted and fully promote full circulation. I call, in order to truly reflect the rationality of the pilot program must implement the suspension system of consultation.
To unilaterally change the rules of the game, and frequently create new market uncertainty, it is taboo for a market economy. This led directly to the Government and the policy of the loss of integrity and credibility and investor disappointment. Because right now, though still on the Shanghai Composite Index in 1999, 1047 points. But this is false by the index and 4.50 yuan on average stock price than in 1996 at 12 o'clock on January 5 was actually lower at 10 percent, only slightly higher than the 1994 level of 325 points, that is, China's stock market has virtually come to a 10-year low, the majority of investors have plunged into "the abyss of history," the wealth shrink day by day, it do not it collapse? especially serious is that management has recognized this is not collapse, but considered to be "market basically stable," "Investor basically agrees with four pilot programs. " If this runs counter to scientific and democratic decision-making principles of "open bow does not look back arrow" is bound with "carried out in the end to collapse," synonymous.
