Statistics show that this year, A-shares have set a total of 10 world records, namely:
1. The number of listed companies ranks first in the world
2. The world's largest financing amount;
3. The number of cancelled accounts ranks first in the world
4. **Drawdown and loss rate are the first in the world;
5. The GEM hit a 3-year low;
6. The Shenzhen Component Index hit a 4-year low;
7. The trading volume has not reached a new high in 8 years;
8. The world's only T+1 trading system is implemented, and it is the highest stamp duty
9. In the world, the market with the largest per capita loss and the index has remained unchanged for more than ten years
10. The market with the lightest punishment for all kinds of violations of laws and regulations.
From the above data, it is not difficult to see why A-shares are at the bottom of the world, not only known as a "wonderful" in the world, but also the reason why they have become the laughing stock of the international capital market.
Why is China's economy growing rapidly in the past 30 years, but it has been in a bear market state of endless ups and downs all year round, which is contrary to the overall positive development trend of the macroeconomy?And it is not proportional to the growth of China's economy for more than 30 years** Not only has it failed to become a barometer of the national economy, but it has become a contrarian indicator of economic development.
It stands to reason that the more listed companies in the market, the larger the market capitalization and the higher the assetization rate, the more beneficial it is to promote economic development. However, the current situation of China's first is diametrically opposed, the number of listed companies is increasing, but it has not played a positive role in promoting the development of the real economy, but has led to a long-term downturn in the bear market, which has become a burden to China's economic development.
The author believes that the reason why such an abnormal phenomenon occurs in China is mainly due to the following reasons:
1. At the beginning of its establishment, it failed to balance the interests of all parties in the capital market from the institutional setting, leaving hidden dangers for A-shares
In fact, the interests of all parties involved in the market are different. As we all know, the purpose of the establishment of A-shares was to solve the financing problems of state-owned enterprises that were in trouble and were struggling, and to transfuse blood for state-owned enterprises through this direct financing channel to save many enterprises on the verge of bankruptcy, which was the original intention of China's establishment at that time.
As a listed company, the purpose of the company's listing is to get as much money as possible from the first to solve the immediate urgency, as for the money in hand is used to operate the enterprise, purchase machinery and equipment to expand reproduction, or to engage in welfare, improve the level of wages and benefits of internal personnel, or divert it for other purposes, ultimately by the enterprise leaders.
More appropriately, for listed companies, listing means being able to get a huge amount of money from the first and no longer have to work hard to run the enterprise. Imagine, since you can easily raise a huge amount of money from the first listing, who is willing to work hard to engage in scientific and technological innovation and run a business.
The purpose of the majority of small and medium-sized investors is to share the dividends of China's economic development and enterprise growth, and to profit from the development of listed companies.
As for the interests of brokers, ** companies and intermediaries, it is hoped that in the IPO process of listed companies, they will make profits by charging a certain percentage of commissions, profit sharing, service fees and other services such as sponsorship, finance, auditing, and legal services for enterprises.
In particular, the company is the biggest profiteer, because the more people who participate in investment and purchase, the more operating funds the company can get for various investments. And the bigger the plate, the more money, and the more management fees the company charges. Not only that, the company also used the people's money to set up the company's self-operated property, used it for investment, embezzled and embezzled, and used the people's money to make money for themselves.
Regardless of the ups and downs?What is the profit and loss of the people?They still collect the management fees of the people, and it can really be said that they are doing a business of ensuring income in drought and flood, and they will never make money and never lose money!With its own professional knowledge, the company is one step ahead of the inside information, and the use of information asymmetry can be sold in advance, so as to easily make a profit in the company.
They can not only profit from ***, but also profit from ** by shorting securities lending, and properly become the biggest winner in **.
What's more, in order to seek personal gain, some ** managers collude with some institutions, use the money of the people to take over a certain **, "carry the sedan chair" for it, and get 10-20% of the share after making a profit. And the people's ** is therefore firmly on the "high hill", which is clearly a naked robbery that makes money for themselves at the expense of the interests of the people.
In fact, the entire A-share system is more conducive to the financing side than to the investor, and it has completely become a vulnerable group in the first place, and many basic demands have not been met.
Since the A-share system itself is set up to serve the financing party, in this case, the interests of the major shareholders and institutions of listed companies have been satisfied to the greatest extent, but the interests of the majority of small and medium-sized investors have been ignored, and the legitimate rights and interests have not been properly protected.
Take delisting compensation as an example, A-shares, which have been established for 33 years, did not begin to compensate shareholders of delisted listed companies until this year, and the implementation of the compensation system was more than 30 years late!
Second, the purpose of most companies to go public is not to make the company bigger and stronger, but to make money in the market
It is precisely because there are a large number of companies in the A** market that they hold the bad listing motive of listing to make money, and many companies do not use listing as a means of financing, but take it as the only purpose, and this behavior of putting the cart before the horse will inevitably lead to serious consequences. In order to achieve the purpose of listing to make money, they do not hesitate to spend a lot of money to hire professionals to package the listing through fraudulent means such as financial fraud.
At the same time, in order to go public as soon as possible and shorten the queuing time for IPOs, the actual controllers and major shareholders of some listed companies have also colluded and colluded with brokers, sponsors, intermediaries and corrupt companies in the China Securities Regulatory Commission to form a fraudulent "ecological chain".
For listed companies, as long as you let me go public, I will give you benefits!There are more than just bright benefits. There are also benefits in private, and there are many more benefits in private than in the open!
In this case, the "gatekeeper" of the market has become the "partner" of the listed company, which is the essence of the problem, which is also the fundamental reason for the lack of supervision and failure of supervision in A-shares for many years.
After the successful listing, the purpose of these companies has reached half, as long as the three-year lifting period has arrived, the major shareholders will immediately sell the company, and will not take into account the company's operating conditions, points and stock prices, even if the company goes bankrupt, it doesn't matter to them, because cashing out is their ultimate goal.
Not only that, many major shareholders are eager to cash out and leave the market, they can't wait for 3 years, they will use other methods such as refinancing to cash out in advance, and this huge wealth obtained through the listing circle is enough to achieve their financial freedom, and the next step is to immigrate overseas to enjoy a happy life.
In fact, the millions of wealthy groups who got rich first created by the a** field for more than 30 years did not leave the wealth earned from the first in the country, but chose to emigrate overseas, which led to the wealth in China (most of which are the hard-earned money of the majority of small and medium-sized investors), a large number of developed countries, and made a positive contribution to promoting the economic development of European and American countries.
This is indeed the case, because the standards for investment immigration in developed countries are relatively high, taking the United States as an example, the investment amount of investment immigration applicants is $500,000, and they must invest $1 million in the United States and create 10 direct employment opportunities to obtain a green card.
Third, the quality of listed companies is low, and most of them do not have investment value
At present, there are very few listed companies with long-term investment value in the A** field, less than 1% of the more than 5,300 listed companies. The data shows that there are very few listed companies with an annualized net profit growth rate of 20% in China, that is, a return on net assets of 20%.
Among the more than 5,300 A-share stocks, only 19 companies meet this condition. These include Kweichow Moutai, Haitian Flavor, Jianfan Biotechnology, etc. Most listed companies do not have investment value. One of the most obvious examples is that in the past 20 years, almost all the people who have invested in ** have lost money, while those who have invested in real estate have made a lot of money.
In the past 10 years, due to the long-term bear market of A-shares, the index has been lying at 3,000 points, and the total market value of A-shares seems to be skyrocketing, but in fact, the market value held by investors is shrinking sharply, which is why so many ** investors will have huge losses.
According to the data, at the end of 2021, the total market capitalization of A-shares was 918.8 billion yuan, but the total market value on September 30, 2022 is only 759.8 billion yuan, the market value not only did not increase, but decreased by 15900 million yuan.
Since the actual controllers and major shareholders of listed companies put all their energy on how to go public and make money, they are bent on studying how to commit financial fraud and fraudulent listing, and how to bribe regulatory authorities to deal with corruptionUnder such circumstances, how can the enterprise operate well, and the final result can only be on the road of delisting. This is also a common phenomenon of A-share listed companies, that is, they make profits in the first year of listing, lose money in the second year, ST in the third year, and delist in the fourth year.
Fourth, "one share dominance" has become the "standard" of listed companies
Regardless of whether the listed companies in the A-share market are state-owned enterprises or private enterprises, the current shareholding structure is "one share", with state-owned enterprises and private enterprises accounting for more than 50%. There are many harms of dominance, and due to the limited space of the article, I will not talk about it here. Roughly the following points:
1. The rights and interests of small and medium-sized investors are damaged;2. Failure of corporate governance mechanism;3. The allocation function of the capital market is weakened4. Impact on the real economy.
At present, the number of A-share listed companies has reached more than 5,300, from a global perspective, the number of listed companies in China is the largest, there are more than 5,300 A-shares, plus Hong Kong stocks, and now the number of listed companies in China has exceeded 10,000.
However, people who know a little bit about economics know that to measure the development of the first-class market, we cannot blindly and stupidly compare the number of listings, but to see whether the capital market has played a positive role in promoting national economic growth.
The data shows:
10-year increase in the United States, 190%;
UK**10-year increase, 180%;
Japan**10-year increase, 119%;
Germany**10-year increase, 140%;
India**10-year increase, 300%;
China's **10-year increase, 02%。
As the world's second largest economy, China has now fallen to the point of being at the bottom of the world, which really does not match China's international status, and it also makes China's 400 million shareholders and 700 million people embarrassed!
Under the frenzied IPOs of recent years, the A-share market is flooded with a large number of garbage companies, and the strict delisting system has not yet been established, we can't help but ask, does China really need so many listed companies?If we don't improve the quality of listed companies and blindly cover our heads to desperately issue new shares, will there be a future for A-shares?
The remarks of Wall Street** suggesting that China **shut down** are still in the ears today, but it still fails to arouse the warnings of the management, where is China going in the future?Unknown. But what is certain is that if the status quo is not changed, the future can only be said to be worrying.