How to make finance better serve high-quality development, especially in the capital market. Imagine that the capital market is not only a cornucopia of wealth, but also a powerful engine that drives the economy forward. How can you make this engine more efficient and powerful? Listen to a few golden ideas from Haitong**.
First of all, listed companies have to be the elite of the elite. Just like the tryouts, not only are the good players who come in, but also the ones who go out in an orderly manner. In order to make this game play beautifully, we have to work from three angles:
Optimize the allocation of resources and make mergers and acquisitions more violent. Looking at the data in 2023, the performance of Chinese companies in the global M&A market, although we are an economic power, there is still a lot of room for growth in M&A. By improving policies and financial instruments, we will promote the injection of more high-quality assets into listed companies, so that the reform of state-owned enterprises and the development of private enterprises can find new impetus in the capital market.
Listed companies must be transparent and have rules. Improving the quality of information disclosure is like doing an "integrity check-up" for the company, so that investors can clearly see every account. Those who violate the rules must strike hard, so that those who try to play clever in the capital market have nowhere to hide.
Let the unqualified players exit the field in an orderly manner. It's like a competition, there's always someone who has to be eliminated. Compared with U.S. stocks, the delisting mechanism of the A** market is like a loose waistband that needs to be tightened. By optimizing the rules and procedures, those companies that do not meet the standards can exit in an orderly manner, while also providing more protection for investors.
Introduce medium and long-term funds to encourage pensions to enter the market.
On the big stage of the capital market, a long-term dilemma faced by the A** field is that the proportion of institutional investors is far from satisfactory. In the second quarter of 2023, institutional investors accounted for 55% of the total market capitalization in the U.S. stock market, compared to only 17% in the A** market. This gap is not only significant, but also has far-reaching implications for the stability and maturity of the market. From the perspective of the development of the United States, long-term funds, especially the addition of pensions, have played a key role in the long-term steady growth.
So, how can the a** field also usher in its own era of "long cattle and slow cattle"? First of all, there is a need to attract more long-term funds, especially pensions. The example of the United States clearly shows how the share of institutional investors in the market has risen from 20% in 1970 to 63% in 2000. America's first.
The proportion of second- and third-pillar pensions in the market is as high as 34% and 51%, while China's figure is only 10%. This is not only a huge gap, but also a huge opportunity.
To achieve this leap, a series of positive measures need to be taken domestically:
Encourage enterprises to establish a more stable pension reserve system for employees。This can not only increase the welfare of employees, but also direct this part of the funds to the capital market and increase the proportion of long-term funds.
Classified management of enterprise annuitiesto meet the risk appetite of employees of different ages. Young employees may be more inclined to take certain risks to obtain higher returns, and the reasonable investment of this part of the capital can bring more vitality to the capital market.
Promote financial institutions to develop medium and long-term wealth management products suitable for pension savings needs。This can not only meet people's demand for pension preservation and appreciation, but also bring stable long-term funds to the capital market.
At the same time, to speed up the pace of the second pillar of the pension market, it is also necessary to improve the corresponding supporting assessment specifications to ensure the safety and efficiency of the pension after entering the market, and ultimately achieve a win-win situation.
Establish a national leveling standard to stabilize market fluctuations.
Setting up leveling** is indeed a tried-and-true strategy to tame market volatility and inject stability into the market at critical moments. This has been proved by both international and domestic experience, such as the Bank of Japan's stabilization through the purchase of ETFs**, and the successful intervention of China's bailout funds in the second half of 2015. These are vivid examples of how leveling comes into play.
What an exciting step it would be if we could breathe life into the A** field again by setting up a new levelling**! This is not only an optimization of the market mechanism, but also a reshaping of market confidence. Based on the strong reputation endorsement of the market, such a level will become a strong guarantee for market stability.
Specifically, the establishment of a scale of 3 trillion yuan**, this figure matches the scale of foreign capital under the circulating market capitalization, which not only has the possibility of practical operation, but also psychologically will have a great encouraging effect on market participants. This **fund** can be diversified, which can be either left over from past bailouts or co-funded by institutional investors. In addition, a steady annual stamp duty revenue can also be an important supplement to the leveling**. Taking the stamp duty revenue of nearly 300 billion yuan in 2022 as an example, this part of the funds can provide continuous financial support for leveling**.
By setting up such a leveling standard, we can not only effectively respond to short-term fluctuations in the market, but more importantly, form a transparent and standardized market intervention mechanism. This will help market participants form stable expectations, reduce irrational behaviors, and promote the healthy and orderly development of the market. At the same time, this is also a signal of strength to foreign investment, indicating that China has the ability and determination to maintain the stability of the capital market, which will play a positive role in enhancing the confidence of international investors and attracting more long-term funds into the market.
**10,000 Fans Incentive Plan