Why do China A-shares keep around 3,000 points? Some people say that there is a problem with China's short-selling mechanism, which is "refinancing".
A-share market, and 3000 points to defend the battle
In recent years, many listed companies have taken advantage of the loopholes in the refinancing system to cash out on a large scale, and even sold their company's shares to Chinese shareholders through various cash-out methods, resulting in high prices and heavy losses.
However, we know that China's financial market, like the real estate market, could have played the role of a reservoir of capital, helping investors to make profits together, so as to cultivate more middle class and allow ordinary investors to obtain benefits, thereby stimulating consumption and stimulating domestic demand to drive economic development.
However, China's Shanghai Composite Index is still below 3,000 points, and it has not crossed this hurdle for decades, and even in 2024, the median stock of A-shares has fallen by 23%, in the final analysis, it is the system of the securities market that has a loophole.
In the A-share market, individual stocks fell this year
So, today let's talk about why A-shares fell below 3000 points again, and let's start with "refinancing", code words are not easy, welcome to like, forward, collect.
Why does the SSE keep 3000 points? Refinancing loopholes, and short-selling mechanisms.
What is refinancing? To put it simply, this is a key mechanism in China's securities market, because China does not allow "naked short selling", that is, direct short selling, so if you want to short sell, you need to find a listed company, and then let the listed company first "melt" the stock to you, so that you can short it.
This system looks very good, after all, the financial market that can be shorted is a complete financial market, European and American countries have always been able to short, indices and stocks are still rising, so the shorting mechanism exists, it is no problem.
The existence of the refinancing mechanism is theoretically fine
However, there are loopholes in the short-selling mechanism of A-shares, which has become a way for many listed companies to "cash out". For example, if a company has just been listed, in order to protect the interests of investors, the shareholders of the company cannot sell shares.
However, due to the existence of the refinancing mechanism, listed companies can simply find a brokerage to cooperate, just listed, immediately borrow and sell securities, and then find an institution in the primary market to take over, so as to achieve the purpose of "reducing holdings" in disguise.
Moreover, due to the existence of loopholes, even if the shareholding is reduced, the listed company does not need to make an announcement according to the 5% shareholding change, so shareholders can easily use the capital market to arbitrage, cash out, and take away a lot of cash.
Major shareholders lend securities at a high level, and buy at a low price after smashing the market, so as to get profits
To be honest, the purpose of the company's listing is actually to make money, so since there is such an easy way to make money, why do you have to run the company desperately? Wouldn't it be better to sell your shares early and retire early to enjoy life?
Therefore, we will find that for most Chinese companies, listing is the ultimate goal, and selling shares after listing to cash out is the result they want most.
What is even more "coincidental" is that the existence of the refinancing mechanism and other loopholes has fueled this atmosphere, allowing these entrepreneurs to continue to reduce their shareholdings and let retail investors take over, while Peng Man, who has earned a lot of money, went to Hong Kong, Singapore, and the United States with money. Or even a change of nationality. There are many such examples in reality, and I will not cite them here in order to avoid risks.
Hongbo shares, a listed company, directly polished the company with 2 billion.
We know about this, and the senior management actually knows about it, so we carried out a series of vulnerability patching, but have all the vulnerabilities been completely filled? Not really.
Or look at the data of refinancing, a listed company still ignores the warning of the China Securities Regulatory Commission, and continues to lend shares through refinancing, so as to achieve the purpose of shorting and reducing holdings, and many companies have lent more than hundreds of millions of yuan in shares in just one month! And this money, in fact, ended up in private pockets.
A company continues to refinance
More importantly, after a few months of harvesting, shareholders know that as long as a company's financing amount is greater than the repayment amount, it means that the company's shareholders are "running away", which will directly hit investor confidence and cause capital flight.
In fact, due to the majority of retail investors in the A-share market, most of the shares are at a premium, so as long as the shareholders of listed companies do not really want to make the company a "century-old enterprise", they basically sell their shares.
As a result, in recent years, more and more listed companies have sold their stocks and exchanged them for cash, which has directly led to the overall "bleeding" of the A-share market.
China's financial defense war has begun! How to save the A-share market?
Therefore, don't blame why A-shares don't rise, a financial market that is constantly bleeding, and finally stumble and stumble only by constantly falling a way, and only by plugging the bleeding loopholes, and then constantly cultivating the market and injecting fresh blood into the capital market, can we attract investors to continue to join, thereby driving the A-share market to rise.
Beijing Stock Exchange Building
So, China's financial defense war has begun, how to save the A-share market? It is mainly divided into three steps, the first is to reform the system, the second is to stabilize confidence, and the third is to cultivate shareholders.
First of all, the reason why A-shares have been at 3,000 points for a long time is mainly because of the uninterrupted issuance of IPOs, which has led to the capital market "exhausting and fishing", when I first worked in the capital market, there were only more than 1,000 listed companies, and now there are more than 5,400.
On June 22, IPOs on the three major exchanges resumed
Every company goes public, in fact, it is "financing" in the market, and the money is ultimately "out of pocket" by retail investors, so that each company will receive less funds, so the activity of the market will naturally decline significantly.
Of course, IPOs can't be stopped, and if they do, there will be problems, but can the speed of IPO issuance be slowed down? This is the main problem that wants to solve the long-term downturn in the A-share market, that is, to strictly control corporate IPOs.
Many people say that we are already in the registration system, and this kind of problem should not occur in theory, so there is also a solution, that is, to break the law that new shares must rise, and allow the listing to directly and significantly "break".
For example, on the first day of listing, a new stock can directly fall by 99%, and it will go bankrupt directly, and after the loss of money effect, then naturally no one will treat A-shares and A-share shareholders as "ATMs".
The next day is to stabilize confidence, since the end of last year, the A-share 2600 points of defense, the national team has begun to "protect the disk" through various means, and the national team's disk protection, stabilized confidence, but not enough.
A shares fell below 3,000 points, and the national team protected the disk
Everyone now knows that if A shares fall below 3,000 points, the national team will come out to protect the disk, as long as it exceeds 3,000 points, it will not protect the disk, which means that A shares will always hover at 3,000 points, and will not rise to 3,500 points, or even 4,000 points, that is, the "official army" is actually "lying flat".
So, can the Ministry of Finance and the central bank take out more money to increase their holdings of state-owned enterprises and outstanding private enterprises, lift the capital market, and attract investors? It's actually a good way to do it.
After all, if we look at the current interest rate, due to the continuous interest rate cuts by the central bank, the interest rate of wealth management products on the market is now very low, and China has actually had an "asset shortage", so as long as the A-share market has a money-making effect and there are signs of a bull market, then there will be funds continue to enter the market.
The third point is to cultivate shareholders, now A shares seem to be rotten to the point that everyone is rotten, many people do not pay attention to the cultivation of young shareholders, which means that whether it is a magnat, or a shareholder of a listed company, or other institutions and capital, they all regard retail investors as "leeks".
Everyone looks at the A-share market with a "harvesting" attitude, do we still hope to see a healthy capital market? In fact, it is very difficult, and the dream of becoming a financial power is also difficult to realize.
summary
China is already the world's second largest economy, but the A-share market has been struggling around 3,000 points for many years, which is indeed embarrassing and helpless.
However, the development of the country must be all-round, finance itself is the threshold that modern countries can not bypass, if we do not fundamentally change the capital market system, do not put the protection of investors, especially the interests of small and medium-sized investors in an important position, and have long been accustomed to the system to mend the seams, 3000 points will always be a hurdle.
The financial defense war is of great significance to China's economy!
Although the lame A-share market has not had a huge negative impact on the real economy now, once there is a problem in the future, it will cause a chain reaction, thus threatening the entire financial system.
Is it really necessary to lose all investors to despair and then go in search of the next round of leeks? If this is the case, then it will be very difficult for China's financial system to resist the invasion of the United States' well-established capital market and the hegemony of the dollar.
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【Sakura Wolf Finance】Explore the truth behind the hot spots, welcome to forward, like, and comment. The source of the picture comes from the Internet