news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

Hello everyone, today we are going to talk about a topic that concerns the vital interests of every stockholder - the healthy development and future prospects of the A-share market. Recently, Professor Liu Jipeng, Dean of the Capital Finance Research Institute of China University of Political Science and Law, made a statement that really made people's eyes light up and thought deeply. Professor Liu is an authoritative drafter of capital market laws, and it is not an exaggeration to say that he is the "behind-the-scenes promoter" of A-shares. But guess what? Even such a big shot has fallen in the stock market. In an interview with the media, Professor Liu spoke frankly and pointed out the crux of the current stock market.

Professor Liu said that there are problems in the design of our market rules. The stock market downturn is not due to lack of money or poor environment, but the root cause lies in the governance structure, wealth distribution and supervision. If we want to get A-shares out of the downturn, we must establish a fair and just stock market environment. Now, the speculation in the stock market is too strong, and it has become a battlefield of zero-sum games. As soon as the company goes public, the major shareholders become rich instantly. To put it bluntly, this money is taken out of the pockets of the shareholders who lose money. But the stock market should be a win-win situation. The money of those who make money should come from the market's liquidity premium and expectations of company growth, rather than simply robbing from other people's pockets.

What is most chilling is that some companies go public not for development but for cashing out. As soon as the stock price rises, the major shareholders can't wait to sell off their shares and take the money away. The money they make does not come from the actual appreciation of the company, but from the redistribution of existing wealth. This is like a carefully designed game, where stockholders invest real money but become the leeks that are harvested.

Professor Liu suggested that since the major shareholders have gained huge wealth through listing, they should be responsible to the market and small shareholders and set up some constraints. For example, they can only reduce their holdings after the dividends exceed the financing scale. I fully agree with this view! In the past ten years, the number of A-share listed companies has increased sharply, but the market seems to be standing still, and sometimes even regressing. Trillions of funds are withdrawn from the market every year, and shareholders are under too much pressure.