In recent years, China's A** market has performed relatively poorly on a global scale, which has made some investors and observers believe that the A** market lacks confidence. They believe that investors' lack of confidence in the A** market has led to instability and trend in the market. However, is this statement true?This article will look at several aspects of this issue.
First, we need to understand what faith means. Confidence refers to the degree of trust and reliance that people have in something or a market. In the financial market, confidence usually refers to investors' confidence in investing in assets such as **, bonds, etc. In the A** market, confidence is reflected in investors' expectations and trust in market movements.
However, is there really a lack of confidence in the a** field?We can analyze this in terms of historical movements and market reactions. Since 2008, the A** field has undergone a series of fluctuations and adjustments. Among them, the stock market crash in 2015 dealt a particularly heavy blow to market confidence. However, even after the stock market crash, the A** market still maintained a certain stability and trend. In addition, judging from the market reaction, every favorable policy and market ** will cause a positive response from the market, which shows that investors' confidence in the market exists.
So, why is there a saying that "A-shares lack confidence"?First of all, the general consensus is that China is not short of money, and as of October 2023, China's total M2 currency has reached a huge 289 trillion yuan. The real estate industry has entered a steady downward trend, and there is a large amount of speculative funds in the marketThe people's savings amounted to 225 trillion yuanA considerable number of people will think that ** is capital + confidence. Judging from the numbers, there is money, and the only thing missing is the confidence to enter the market.
However, we can't simply reduce the problems of the a** field to a lack of confidence. In fact, investor confidence in the market is based on a number of factors. First, investors need to trust that the market's rules and regulatory regime are fair, transparent, and effective. Financial fraud is punished, fraud is fined, and benefit delivery is fined, and the entire a** field is full of things that can be done as long as you spend money. In recent years, China's anti-corruption efforts have been strict, but it has chosen to open the capital market to the net. In fact, China's real large-scale corruption occurs in the A** field. Arrest the director of a hospital, confiscate tens of millions at most, and the amount of crime in the capital market is calculated in units of 100 million yuan, so it is urgent to rectify the a** field with strict punishment and strict law. Second, investors need to trust that the company's fundamentals and performance are reliable. Finally, investors need to believe that the future prospects of the market are positive. Only when these factors are met will investors have confidence in the market. The characteristics of the A-share system are large and many. Before the IPO, the sudden large dividends hollowed out the listed company;The major shareholder has not lifted the ban** to lend to the institution to short the stock price, and then buy it back at a low price;For many years, financial fraud has not been dealt with, etc. Every time a major event happens, it is discovered by netizens. Regulators have become ornaments, and every time they shout to the market, they say that they insist on "zero tolerance", but in reality, they become "tolerable".
Therefore, in order to improve the confidence of the a** field, we need to start from a number of aspects. First of all, we need to strengthen the regulation and regulation of the market to ensure the fairness and transparency of the market. Violations of the law and crimes cannot be punished at once. Not only to criminalize, but also to double the compensation for the losses of investors. At the same time, it is necessary to allow ** supervision, and for small compositions, you can't kill them with one shot. Second, we need to improve the quality and service level of listed companies, form an environment for the survival of the fittest for listed companies, clean up companies that do not abide by market rules and do not meet the requirements for continued listing, and enhance investors' trust in the company. Finally, we need to strengthen the education on the regulatory risks of listed companies and establish a comprehensive and three-dimensional supervision and supervision system.
In short, the statement that "A-shares lack confidence" is not entirely correct. While there are a large number of problems in the a** field, we can't attribute all the problems to a lack of confidence.