According to the Xinhua News Agency, it was decided to appoint Comrade Wu Qing as chairman of the China Supervision and Management Committee and remove Comrade Yi Huiman from the post of chairman of the China Supervision and Management Committee.
There are also reports on Wu Qing, who served in the China Securities Regulatory Commission for a long time before 2010, and has vigorously cracked down on illegal securities firms and rectified the rat warehouse, and has a reputation for an iron fist.
So, what is the impact of the change of leadership of the CSRC on **?
First of all, the most fundamental factor affecting the economy is the fundamentals of the economy. However, this is beyond the scope of the SFC's work, so I will not discuss it for now.
Secondly, judging from his resume, he should make great efforts to rectify the fraud of listed companies and rectify the violations of securities companies and **. This point has a certain degree of benefit for **.
Third, merely rectifying violations is not enough to reverse the current trend. As a veteran shareholder, I personally believe that the IPO should be suspended, and short selling should be suspended.
A moratorium on IPOs, many experts say is not feasible. The reason why it is not feasible is actually blocking the way for some groups to cash out. Looking at the U.S. stock market, the total number of listed companies from 2018 to 2020 has an average of 350 new listed companies per year, but the total number of listed companies has a very small increase, or even a negative number. The reason for this is that the United States has a very strict delisting system. Therefore, the number of IPOs and delistings form a dynamic balance.
Therefore, it is very important to suspend IPOs at this time. During the suspension period, a stricter delisting system should be introduced, and after the reopening of IPOs, a mechanism must be formed to balance the number of IPOs and the number of delistings, as is the case with U.S. stocks.
As for the pause in shorting, it is even more necessary. Our shorting mechanism is very unfair. **Can't be shorted, big institutions can. Is it hard to pause shorting? Will there be catastrophic consequences? South Korea** suspended shorting in November last year, and now the stock index is steady** and does not create systemic risk. Therefore, it is imperative to suspend short-selling in a protective manner and improve the mechanism for short-selling in a fair and just manner.
With these two pauses, ** will definitely be able to stabilize.