China's stock market deficiencies in the system spike

 China's stock market deficiencies in the system spike
mm of Stock Market in the five system defects
Wuhan University of Technology Director of Finance and Securities Research Institute, New Tang (Professor)
China has been a surge in the stock market crash has become a chronic illness,UGG boots clearance, mm up too far one: early September 2006 mm2007 years 10 months, about a year, the Shanghai Composite Index from 1664 points to 6124 points onslaught, soared 268% a year, ranked first in the world rose! even more ironic is: 10, 2007 mm2008 years 10 months the end of about a year, the Shanghai Composite Index once again return from 6124 points to 1664 points, their colors the year plunged 73% decline in the column first in the world! this boom, crash of the ;, is series of system defects and the
pricing basis and investor confidence in the sequence in the securities shelf products, corporate bonds between the bond and stock, between the mix of risk and return, the company has an excellent diversified bond In terms of risk, Treasury is the transitional species, only bonds to provide investors with investment options and portfolio diversification.
reform and opening up, China has always been the Treasury bond market However, the majority of financial bonds and corporate bonds can only be the central issue of corporate or state-owned enterprises, so they have a very strong October 2007, interest rates by the sponsors and distributors to market the results of the inquiry in consultation and inquiry objects covering almost all types of bond market transactions of institutional investors, market-oriented pricing, coupon rate truly reflect the market rate of return requirements .
Unfortunately,UGGs, the credit rating is the prerequisite for corporate bonds, market-based pricing of corporate bonds in China, so far has been difficult to shape, or form a climate. corporate bond market as an important platform for interest rate market or the carrier , it is institutional investors and individual investors the eyes in addition to stocks, have no choice.
(b) The lack of short mechanism: the stock market to do much more utilitarian side
1995 年 5 17, as China does not have the basic conditions for carrying out government bond futures, China Futures Trading Commission pilot made the decision to suspend debt. So far, China has tried the first declaration of a financial futures died.
one was bitten, twice shy .15 year later, the Chinese government bonds spot cash market and the stock market has entered the world, however, we still can not launch China's first financial futures. Although as early as two years ago, has been prepared at any time the official launch of ; margin, profit, is the extremes meet, when the stock rose no rose,UGG boots, or rising too far, the in order to get a rebound or reversal again.
Thus, when the lack of short mechanism, frequent rises and falls, in particular or one step up, one step down, the market will become an eternal choice.
(c) the lack of OTC: exit system exists in name, the stock market is bound to refuse cross-flow
the two most important basic functions: financing and investment functions and resource allocation function. survival of the fittest, Ebb Tide is the true nature of the stock market.
survival of the fittest market functions, mainly depends on two checkpoints: one doorway mm listing standards; second exit off mm exit system. IPO of the approval system is to ensure that selecting the best, so good business, good corporate priority listing, to gain more social resources; the stock market delisting system is to ensure that clean water often change frequently, through metabolism to achieve survival of the fittest. < br> If you can not only enter, and then can not withdraw from the market garbage, then the system must withdraw from the market failure, or useless. delisting system ineffective for two main reasons: First, by manipulating the statements of listed companies or false re refuses to withdraw from the market, which has become a junk stocks kept secret It is because of delisting system exists in name, junk stocks delisting difficult, has become the market consensus. This is the institutional investors and individual investors the courage crazy fried junk stocks at any time the root cause of the lies. as long as the waste does not withdraw from the market shares of its stock to dare to turn hand for the cloud cover as the rain hand. Of course, the garbage stock speculation is pretty wild itself, does not matter, because after all, is at your own risk, but even worse, the frightening thing is: junk stocks Bijiaxiaoying will seriously distort the market price order. For example, , when all the junk stock price are reluctant to less than 5 yuan, the investors will unconsciously raise the type of long-term stock market bubble mm high price-earnings ratio.
CD this measure, as quickly as possible OTC market (OTC market or, said that the counter market), open up the motherboard,cheap UGG boots, between the GEM and the OTC , both qualified to OTC can upgrade to the Main Board or GEM listing, on the contrary, the Main Board or GEM stocks may also refuse to withdraw from the market OTC. In other words, this channel system also gives the delisting a It can make junk stocks delisting easier and more efficient, more relaxed, more calm!
(d) of the stock market tax system: the absence of the main taxes mm capital gains taxes, encouraging Duanchao
tax structure from the world stock market point of view, capital income tax has become the main stock market taxes, stamp duty and dividends tax relegated to a secondary position, a supplementary tax. But just the opposite case of Chinese stock market, stamp duty is still the main body of China's stock market taxes.
capital income tax rate due to were in accordance with the to differences in design and use of progressive rates, so both can play, In the Chinese stock market, because capital gains taxes (or stock income tax) is still unable to levy, therefore, it is not only a direct result of wage income and capital gains speculation.
(e) , can not or do not want to let go. the stock market booms, regulators fear; stock market crash, the regulators, is afraid.
for our stock market, regulators are not confident, or not to trust? whenever the bull market too far not down in the end. up too far, everyone is proud of shareholders, regulators, cooling, investors criticized; down too far, individual investors BS-ing, regulators stand to save the market until investors smile. so forth, as long as they control the administrative, economic, legal means, for example, stamp duty, broker-employed, interest rate, deposit reserve ratio, or even direct control of the IPO and the IPO pricing rhythm.
It is clear that spike oscillation pattern, other obstacles to market reforms will be