The regulations of the protective disk repurchase are similar to the chicken ribs, and the symptoms

Mondo Health Updated on 2024-03-03

A new rule will impose restrictions on wanton shorting and short-selling of one's own **. The core of this new rule is that if the share price of a listed company has increased by 20% in 20 consecutive trading days, or by 50% compared to the previous year, then the company has the obligation to make a buyback. In short, public companies must reclaim those that others can't digest. And those who rely on securities borrowing and lending to short their own **, or take an undisciplined liquidation style**, if they do not restrain their behavior, they will face a more difficult situation in the future.

Little Devil Problem: If it falls by 19 for 20 consecutive trading daysWhat about 9%?

The introduction of the new regulations can be seen as a strong response of the regulatory authorities to the market chaos. In recent years, with the development of the market, some speculative behaviors have become increasingly rampant, which has brought serious damage to the market order and the interests of investors. In particular, some investors use tools such as securities lending to maliciously short their own companies, which not only seriously disrupts the normal order of the market, but also leads to a large increase in the stock price of listed companies, affecting the company's operation and development. Therefore, it has become a top priority to strengthen the supervision of such behaviors and protect the market order and the legitimate rights and interests of investors.

The introduction of the new regulations may have a far-reaching impact on the market. First, it will curb the malicious behavior of some speculators, reduce market uncertainty and boost investor confidence. Second, by strengthening the repurchase obligations of listed companies, it will help boost stock prices and maintain market stability. Thirdly, for those long-term investors, they will be more optimistic about the long-term development of the market and more willing to hold their own **, thus forming a good investment atmosphere. But will these really make the market better? The little devil thinks it's hard!

However, the introduction of the new regulations also faces some challenges and problems. First of all, how to ensure the effective implementation of the new regulations and prevent the occurrence of some violations is an issue that needs to be seriously considered. Second, regulators need to strengthen the monitoring and early warning mechanism of the market, and timely detect and respond to abnormal fluctuations in the market to ensure the stability and healthy development of the market. At the same time, it is also necessary to further improve relevant laws and regulations, strengthen the supervision and punishment of market entities, and form an effective market restraint mechanism.

Although the promulgation of the new regulations marks the further improvement and strengthening of China's capital market regulatory system, it is of great significance to maintain market order, protect the interests of investors, and promote market stability and healthy development. But, in fact, if you think about it carefully, it doesn't make much sense, the essence has not changed, and treating the symptoms but not the root cause is just fooling investors!

However, this is also a good thing in the spirit of Ah Q, after all, the high-level is thinking about this matter again!

The views are from the internet and are for reference only!

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