I was so impressed! The People's Daily made a heavy statement, and the refinancing of short selling and quantitative trading was named, and the next step is likely to be a big move to reform!
Niu Wenxin, chief commentator and chief researcher of the People's Daily's "China Economic Weekly", and a member of the financial market expectation management expert of the Financial Stability Commission of the State Council, issued an article saying: Refinancing short selling and quantitative trading are the most criticized trading mechanisms by retail investors, which violate market fairness and should not be legalized in the name of 'standardization', and should be banned. To strengthen supervision and prevent risks, it is necessary to vigorously and effectively deal with those "market mechanisms that run counter to each other." It is hoped that the China Securities Regulatory Commission will make great efforts to rectify deviations, say "no" to all behaviors that deviate from the principle of fair trade, and fully protect the legitimate rights and interests of investors, especially small and medium-sized investors. Now that we know that there are 220 million retail investors and 700 million fund investors in China's capital market, we must not allow high-frequency trading to treat these investors as lambs to the slaughter.
This article is so well presented! As a member of Xiaosan, I was moved to cry when I saw this article, because the life of everyone's investment in the past two or three years has been too difficult! In the case of continued sluggish market confidence, it is very rare for the People's Daily to be concerned about small and scattered and speak for the capital market! Refinancing and quantitative trading are indeed unfair to retail investors, because these means are simply not used by everyone, and as a market with retail investors as the main investment group, 99% of people cannot use the means, which can be used by institutions, as Niu Wenxin said, "these stock trading mechanisms violate market fairness".
Investors and many experts in the whole market are calling for the suspension of quantitative trading and refinancing, and now the People's Daily has personally stood up to speak for investors, I think this should be a weather vane, and the next step is likely to reform and improve the quantitative trading and refinancing system, and there is a possibility of tightening or suspending it.
In fact, the CSRC is very pragmatic, and Chairman Wu has issued dozens of institutional rules in just a few months after taking office, and has done a lot of work in reshaping the investment pattern of the capital market, strengthening the construction of the investment side, enhancing the investment value of the stock market, and plugging the loopholes in the system. It's just that the market is too weak and the reaction to various positives is relatively flat. However, with the continuous advancement and deepening of reforms, the improvement of various systems, and the increasing value of market investment, the growth of A-shares is accelerating, and the long-term positive situation is becoming clearer and clearer. As an old leek, I think the next round of bull market is the most promising to get out of the first healthy cattle in the history of A-shares! The system is getting more and more perfect, the market is becoming more and more fair, and the investment value is getting higher and higher, the attraction will become stronger and stronger, and incremental funds will continue to enter the market, and the stock market will be expected to grow and slow down.
Going a little deeper, building a strong capital market is a practical need to help China's economic transformation and upgrading, a key link for the optimization and transfer of resource allocation, and an important means to promote the expansion of consumption, which is of great benefit to the country, the people and the society.
Why should the capital market become a key link for the optimal transfer of resource allocation? A lot of friends don't understand. Let's say a few more words here and make a pedigree.
In the past few decades, it was real estate that served as a link in the allocation of resources in China's economic development. Enterprises invest in real estate industries from bank loans, driving 60 or 70 upstream and downstream industries and providing a large number of jobs; The government sells land and increases taxes, and the funds obtained are invested in infrastructure construction and major projects, which not only lengthens GDP, but also creates a large number of jobs; A large number of workers earn wealth through labor, turn to consumption and investment, and promote the development of all walks of life. This has formed a complete economic chain of "finance-investment-consumption-development". In this chain, real estate acts as a link in the allocation of resources. In the future, there is basically no industry that can replace real estate as a resource allocation link except for the stock market.
Back to the stock market, some experts said: If retail investors make money, what money do institutions still make? The implication is that Xiaosan should become a leek of the institution. The dark horse really disagrees with this point of view. The stock market should not be a zero-sum game or a negative-sum game, and all market participants should not make money from each other's pockets, but should earn money from the growth of listed companies and the incremental wealth created by the rise of the stock market, which is a normal, healthy and sustainable market. Many friends will have questions in their hearts, isn't buying stocks just inverting the price difference? Inverted spreads are certainly a way to invest, as trading is one of the basic functions of the stock market. But the stock market doesn't just exist for financing and trading, it also has an important function of creating value and increasing wealth, which has been neglected in the past. Even many institutions and listed companies do not have such awareness and awareness, in their eyes the stock market is an ATM, rather than creating wealth, so a large number of companies have no bottom line to reduce their holdings, institutional high-frequency trading and a large number of securities lending.
How does the stock market create incremental wealth? There are two main ways:
The first is the profit and dividends from listed companies. High-quality companies continue to create income, continue to make profits and dividends, which is incremental wealth.
The second is the growth of the total market capitalization. Market value itself is a manifestation of wealth, how many of the world's richest people are not heroes based on market capitalization? A stock market that has risen steadily for a long time has created an astonishing amount of incremental wealth. For example, Microsoft, Apple, and Nvidia in the United States, the total market value of the three giants exceeded 10 trillion US dollars, what is the concept? It is equivalent to about 73 trillion yuan, and the three companies are equivalent to the total market value of A shares! In other words, only by selling all the A-share listed companies can you buy these three companies in the U.S. market. Let's think about it, are these three companies in the U.S. stock market really that valuable? Is it really more valuable than our more than 5,300 companies? Apparently not! It's that our equity is too cheap. If our index rises to 10,000 points, how much wealth will we have to create for the country, for the enterprise, and for the people?
If you don't look at the market on the weekend, let's talk more.
If the total market value of A-shares increases by 20 trillion, does it need to have 20 trillion incremental funds to buy? The answer is no!
Suppose there are only 100 shares of stock A, the stock price is 10 yuan, and 10 investors each spend 100 yuan to buy 10 shares, and the total market value of these 100 shares is 1000 yuan, which is just the total amount of funds invested by investors. One day, Xiao Li was optimistic about the investment value of stock A, and bought stock A in the hands of the holder Xiao Wang at a price of 15 yuan per share, at which time the stock price rose to 15 yuan, and the total market value of these 100 shares increased to 1500 yuan. In other words, Xiao Li's incremental capital of 50 yuan has increased the wealth of the market by 500 yuan. It seems that only Xiao Li and Xiao Wang have traded, and the other 9 people have not traded, but they each directly won 50 yuan.
Why $50 incremental funding? Xiao Li invested 150 yuan? Xiao Li invested 150 yuan to get 10 shares of stock A, Xiao Wang sold stock A to get 150 yuan in cash, and the 150 yuan in cash included his principal of 100 yuan, and he earned 50 yuan, and this 50 yuan is the incremental capital brought by Xiao Li.
Seeing this, everyone must have understood that the wealth effect created by the rise of the stock market is fission-level, and the wealth increased by a trillion incremental funds to promote the rise of the stock market is trillions. It is hoped that the A-share bull market will come as soon as possible and become an important place to create wealth for the people of the country.
Finally, please give a thumbs up, give encouragement and support, thank you very much!
The above content is personal opinion only and is not intended to be instructive. The mention of individual stock funds is only to record market views and the actual operation process, and accumulate materials for future creations, without making any recommendations, please do not blindly follow up. Past performance is not indicative of the future and investors should be aware of the risk of market volatility.