IndiaMumbaiThe index continues to hit record highs, and the market has risen more than 100 times, while the Chinese market is still hovering around 3,000 points. Does this mean that China can learn from India's experience and make it happen?What about the rapid growth of ?In recent years, IndiaAfter a 13-year bull market,MumbaiThe index has risen by 702% and has grown by 10,900% since 1990. Currently, IndiaThe overall market capitalization is the fourth largest in the world after the United States, China and Japan.
Again,Japan**Recently, it also hit a new 33-year high, and it has risen as much as 3 times in 10 years. And the United StatesIn 2008Subprime mortgage crisisAfter also achieving multi-fold growth, such as:Dow JonesThe increase is about 300%.NASDAQIt has increased by nearly 10 times. Why these countriesAble to continue to soar whileChina**In the past 13 years, there has been no gain
To answer this question, first we need to understandThe reason for the increase. The increase can usually be attributed to two factors: direct causes and long-term factors. The direct cause refers to the inflow of funds, as long as there is a continuous influx of new funds into the marketwill continue**. However, it is impossible to accurately measure the extent of a bubble. Long-term factors are the sameEconomygrowth is relevant only whenEconomySustained growth will lead to higher earnings and higher valuations, thus creating a virtuous circle.
IndiaThe growth is due to two factors. First, India, like the United States, has adopted a permissive-entry and strict-out registration system, requiring transparent information disclosure by listed companies and severely punishing violations. If a fake listing is discovered, the company will be quickly delisted, and the relevant personnel may be sentenced to hundreds of years in prison. In addition, companies are required to buy back when they are delistedInvestmentsin the hands of the people, thus preventingFinanceDeceit. This system ensures that high-quality enterprises can quickly obtain funds for development, withChina**The situation of waiting in line for years to go public is in stark contrast.
Secondly, IndiaFocus on protecting the individualInvestmentsinterests. IndividualsInvestmentscan make a buy and sell transaction on the day (t 0) while the institutionInvestmentsYou need to wait three days (t 3) before selling. Such a provision protects the individualInvestmentsthe interests of the institutionInvestmentsThey usually have higher operational capabilities and information advantages. In contrast, China's trading regime is for institutionsInvestmentsis more friendly, institutions can perform short selling operations, but ** cannot. This led to China AThe cost of shorting institutions in the market is lower, and it is difficult to form an effective market mechanism.
China**Contrary to the performance of other countries, the reason lies in China's funding andEconomyState. Over the past few years,China's capital marketsThe development of the real estate market is mainly dependent on, and not。In 2008Subprime mortgage crisisAfter the Chinese real estate market skyrocketed, it became a reservoir of capital pooling, whileRule**. China's $4 trillion infrastructure stimulus package has further exacerbated its reliance on real estate. This led to:China**It has been hovering around 3000 points for a long time.
However, now that the historical mission of the real estate market has been completed, it will return to residential properties, which makes:The importance is rising again. Recently, the regulatory authorities have frequently issued favorable policies, but China AThe field is still at a stage low, which is related to the funds andEconomyof the situation.
1.Valuing the individualInvestmentsinterests. China**The concept of development should be changed to value the individualInvestmentsinterests. In the past, China tended to foster institutionsInvestmentsbut ignore the ordinaryInvestmentsrights and interests. Measures should be taken to protect individualsInvestmentsto increase the confidence and participation of market participants.
2.Strengthen supervision: Strengthen the supervision of listed companies, severely punish violations, and improve the transparency of corporate information disclosure. In this way, the company can avoid fraudulent listing and protectionInvestmentsinterests.
3.Improve the delisting system: Strengthen the punishment of delisted companies and require delisted companies to buy backInvestmentsof。This prevents itFinanceFraud, maintaining market order.
4.Optimize the trading system: consider formulating it in favor of the individualInvestmentsThe rules of the transaction, protectedInvestmentsrights and interests. Restricting agencies may be consideredInvestmentstrading behavior, such as restricting short selling operations.
In short,China**We can learn from India Xi to improve the institutional environment and protect itInvestmentsto increase market activity. Only then,China**In order to achieve rapid growth and form a virtuous cycle of development.