On the Rise and Fall of China s Stock Market

Mondo Finance Updated on 2024-01-29

In the past few days, the world's major indexes have risen gratifyingly, and only A-shares have fallen repeatedly, so what is the reason for the downturn of China's ** index constituents?Today, we will objectively sort it out.

First, the index is determined by the rise of the constituent stocks, and the rise is determined by investor confidence and investor enthusiasm. In the past two years, the global economic downturn, China's real economy is also facing the impact of networking, intelligence and overcapacity, and the original physical marketing and service ecological chain has changed more or less in nature according to the degree of Internet in the industry. The convenience and diversity of consumption promotes consumption, and at the same time, reduces people's ability to save.

Second, in recent years, a variety of investment opportunities have been constantly scraping the pockets of investors, and in the case of a downturn, the number of investors and the amount of participation are decreasing, which is a superficial phenomenon.

Third, due to the strong supervision of the industry and the difficulty of listed companies through the secondary market financing, the management of listed companies no longer cares about the changes in the company's market value, and the company's business indicators lack the company's market value and capital operation level of the task objectives and related assessments. At the same time, most listed companies do not have professional legal market value operation talents, and the China Securities Regulatory Commission and the stock exchange also lack policies and guidance on compliance and sustainable operation in terms of legal operation and operation indicators of the enterprise market [China's ** market needs a group of professional talents and listed company capital operation teams focusing on index operation and legalized capital operation of listed companies].

Some containment policies or restrictive measures that have been introduced now can only allow the company's proprietary business, listed companies' private placement business, and the company's behavior to be subject to corresponding control, but it has also discouraged the enthusiasm of directors, supervisors, senior executives and investment institutions of listed companies to make medium and long-term investments in combination with the development plan of listed companies. How to identify and control the malicious market manipulation in a scientific way, reasonably protect entrepreneurs and investment institutions to operate in market value based on the principles of value investment and reasonable valuation, and protect the legitimate rights and interests of shareholders of listed companies with practical actions is the basic direction of exploring the construction of a capital market with Chinese characteristics.

Fourth, starting from securities companies and investment advisory institutions, improve and improve the investor education system, and correctly guide investors to make medium and long-term investments from a professional perspective in line with the principle of seeking truth and pragmatism [based on trend quantification and non-subjective decision-making, and guided by brand value and industry growth expectations], so as to enhance the investment management ability of the whole people. At the same time, combined with domestic and foreign economic trends and international capital layout expectations, we will establish and cultivate a group of international investment management and capital operation teams that are good at adapting to trends and have forward-looking capabilities, so as to strengthen the ability of the game between Chinese capital and international capital.

Fifth, actively organize the implementation of the whole market T+0 and no limit on the rise and fall of the trading system, so that all investors in the market can fully carry out an equal game, which can also reduce the chance of systemic risk in the whole market, reduce the possibility of killing pigs and malicious manipulation, accelerate the release of investment risks and improve the resilience and repair ability of the index. When a T+0 trading atmosphere is formed, enterprises with long-term investment value will naturally become the main force of the market, while enterprises without investment value will increase the speed and efficiency of natural elimination.

Sixth, weakening the influence of the index on the investment plan of individual investors, looking at any market in the world, there are ** and **, so the current investment only needs to be rigorous in the selection of industry sectors and the selection of listed companies, and strictly based on the trend changes in the investment target to implement their own established investment plan.

The above views are for reference and communication only, more articles welcome to pay attention to my column, Minglong Think Tank Author: Yu Minglong.

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