Miserable!
Today, the 53rd 3,000-point defense battle of A-shares officially began.
Everyone is already numb, watching the index struggle up and down, and even a little like laughing!
We are wilting, but India next door is a pillar of optimism.
India's Mumbai index, which hit a record high yesterday, continued today, reaching 69,376 points at one point.
This is going to go for 70,000 points......
In this regard, we can only force a smile and comfort each other:Don't envy, their market is out of control!
To put it bluntly, it's still sour.
I still remember that 3 months ago, when I heard that the European Union was going to increase India's **, I immediately **an Indian off-the-counter**.
I held it for half a month, it rose by 1%, and I couldn't stand it and sold it.
If you get it now, you can earn at least 10 points ......
Alas, I am used to Xi playing in the fast in and fast out of A-shares, and I have completely forgotten the original intention of value investment and long-term holding.
The environment can affect and change a person.
I suddenly understood why A-shares are compared with India, and the two are fundamentally opposite environmental ......
Similar starting point, opposite choice
Most of the successful ** reflects one characteristic:There is a good index, which can represent the most advanced industrial direction.
Its long-term average rate of return should be higher than the growth rate of the country's economy.
Only in this way can the whole people believe in the fortunes of the country and form a wealth effect.
Ordinary people are not stupid, what's the use of just talking with their mouths?It is the last word to let everyone make money.
So here's the question:How do you know which is the direction of advanced industries and which are high-quality enterprises?
No one knows in advance, so leave it to the market to choose.
Survival of the fittest is the way of heaven.
Can U.S. stocks grow bullish, does it just rely on financial hegemony?Of course, there must also be quality companies to support the market.
And super-large companies like Apple and Microsoft, are they the result of deliberate cultivation in the American market?
Definitely not. It is their own creativity and vitality that they survive to the end in a highly competitive market.
Only full competition can promote the market into a virtuous circle, and the cake will become bigger and bigger.
It's the same in India.
The Bombay Stock Exchange, founded in 1875, is the first ** exchange in Asia.
The original India** is somewhat similar to today's A-shares, with companies constantly listing to make money, and foreign capital is not allowed to intervene.
By the end of the 1980s, there were more than 6,500 listed companies in India, but the index hovered below 1,000 points for a long time.
It was not until the 90s that India began to engage in "reform and opening up". In order to attract overseas investors, ** followed suit.
In 1992, China promulgated the Measures for the Pilot Program of Joint-Stock Enterprises.
In June of the same year, the Indian ** Exchange Commission also issued the "Investor Protection and Information Disclosure Guidelines", which changed the "preferred-based" issuance system that had been used for hundreds of years to "disclosure-oriented".
What does that mean?It is to fully embody the principle of marketization, ** there must be out, and you can't just circle money for high-caste masters.
The attitude is very resolute.
From 1992 to 1996, a large number of new listed companies were added in India, igniting the final madness
In 1992, 316;549 in 1993;In 1994, 968;In 1994, 1,281;1,105 in 1996.
The flip side of opening up new listings** is the imminent wave of delistings.
From 1997 to 2020, the cumulative number of IPOs in India was less than a quarter of that of 1992-1996. However, a total of 2,869 companies were delisted, accounting for 54%, with an annual average of 106.
Make sure that only high-quality companies can stay, forming a good index.
That's what the NASDAQ did, that's what the NYSE did, and that's what India did.
The delisting of a large number of companies will not dampen market confidence at all, but can become a bull market starter.
Of course, there is a premise for this:Retain high-quality listing resources.
Unlike China, where a large number of outstanding companies are listed overseas, excellent companies in India must be listed on the National Exchange of India or the Bombay Exchange.
For larger overseas listings, 15% of the shares must be offered to domestic investors to effectively avoid market hollowing.
Only in this way can full competition be ensured. Instead of big companies going to sea, there are only three or two kittens left in China.
So in 2004 alone, as many as 974 companies were delisted from the Bombay Exchange. But from this point in time, the Indian stock index has really started to rise sharply.
In 2016-2017, India's second wave of delisting, the stock index trend was also significantly stronger than before.
Compared with only dozens of A-shares that are delisted every year, whether voluntarily or forced, the determination of Indians to open up is stronger than ours.
While improving the "trading side", it is necessary to increase the intensity of delisting.
If this problem is not resolved, there will never be a long-term bull market in A-shares.
Hello everyone, it's really good
After talking about the market system, let's talk about the issue that everyone is most concerned about: the trading system.
Guan Zi said: Whoever makes a hole is invincible in his country.
Shang Ying also said: If you make a hole, the country will have many things.
Don't dwell on the original meaning of the ancients, from today's point of view, it can be explained like this:Only when most people can make money in the market will everyone work together to go long in the market.
This is a virtuous circle, and fishing is the next policy.
So what does an excellent market have to do?——Protection of small and medium-sized investors.
In 2001, India began to fundamentally reform the trading mechanism**T+0 is forgotten, and it is still necessary to let the institution go to T+3.
Yes, you read that right, it's the other way around with A-shares.
That is to say, once there is a risk, let ** run away first, and the institution will break off.
Really?Envy or not?
There is only one purpose:Improve pricing efficiency and reduce transaction risk.
In this environment, ordinary people dare to invest boldly.
You think that's the end of it?
India's protection of small and medium-sized investors goes far beyond that.
In front of the Mumbai Exchange, investors are trending.
India has one"Investor Protection**"., specifically to provide relief to investors who have been damaged by violations by listed companies or brokers.
In order to not only ensure that the best money is made, but also to take care of them, so that they will not be cut leeks, but also insulted and ridiculed by the main force!
India also has a special **-scores (scores.) that specializes in reporting violations by listed companiesgov.Guess how many cases it accepts and resolves each year?
30,000 pieces. Brothers and sisters, what is this concept?!
It means that 30,000 practical things are done for ** friends every year!
And a lot of it has been done.
So you can see,The number of reported cases and the number of pending cases on scores** are on a downward trend.
XXX on our side, in addition to shouting slogans and punishment orders, how many things can be done in a year?
Even if we have a report**, as long as the mechanism is not changed, the cases will only pile up more and more ......
In addition, India has established a strictAnti-fraud issuance system and class action systemAn investigation team has been set up to arrest people directly in the violating company or institution.
Want to run away after rolling up the money?Inexistent.
Screenshot of the scores reporting page.
Of course, the Indian market is not completely indifferent to institutions, and if it is really done like that, there will be no funds to dare to enter.
It is important to understand that:India does not regard T+0, bulk, volatility adjustment, securities lending, market maker and other mechanisms as individual detachable modules, but considers the trading mechanism as a system as a whole.
In short, it is to vigorously develop risk management tools such as derivatives, which are closely related to institutions.
In other words, this thing is what institutions should focus on, rather than thinking specifically about cutting leeks.
At present, the National Exchange of India*** ranks first in the world in terms of notional turnover of options and fourth in the world in terms of notional turnover of stock index** and options.
* Long cattle, the market is so friendly, is there any reason for the middle class not to invest?
No. In recent years, especially after the outbreak of the epidemic, India has released water super-liberally, and the enthusiasm for entering the market has become more and more high.
In 2015, there were 10 million investors in IndiaIn 2020, 21 million;In 2021, 40 million;In 2022, it will exceed 100 million.
More and more people are making money in **, and the benefits are obvious.
Cao Dewang once said:Of China's 1.4 billion people, only 200 million people actually have spending power.
In 2022, the global GDP per capita is 120,000 US dollars, 1 per Chinese$250,000, which doesn't look too bad.
But our consumption rate is less than 50%, far below the world average of 75%.
India has also been a big saver in history, but its consumption rate is as high as 77%.
The main reason, of course, is that Chinese are kidnapped by housing loans, and it is difficult to increase their spending power.
But if it can be good, so that the small people can make more money, the situation must be better than now.
Actually, is there anything special about these things that India has done for **?
No. Every successful, upward market in the world does this, and India is just copying it.
It's just that our own market is more peculiar, so it feels so strange.
A good market follows two things:A good regulatory system and relatively fair market rules.
Is there any difficulty in achieving this?No.
What India can do, China can certainly do. I don't doubt this in the slightest.
The key is, whether you are willing to do it or not.