Recently, it has been reported that the China Securities Regulatory Commission is studying the establishment of a Chinese version of the leveling standard to stabilize and boost market confidence. This news has sparked heated discussions among all parties, some people think that this is the savior of the world, and some people are worried that this is chicken ribs and will undermine the rules of market freedom. So, what exactly is the Chinese version of Pingzhuan**? What is its background and purpose? What impact and significance will it have on **? What are the implications and lessons for it?
What is the Chinese version of Pingzhuan**? Leveling**, also known as stability**, is a special project set up by ** or the central bank to stabilize the market ** and prevent market panic or excessive prosperity by buying and selling ** or other financial assets when the market is abnormally volatile. The purpose of leveling is to maintain the stability and health of the market, protect the interests of investors, and promote economic development.
**10,000 Powder Incentive Plan China Version Leveling**, refers to a kind of leveling set up by the China Securities Regulatory Commission, which is mainly used to stabilize the stock index, boost market confidence, and prevent systemic risks when there are large fluctuations. The scale and funding of China's version of the leveling standard have not yet been clarified, but it is reported that it may be led by the China Securities Regulatory Commission, jointly funded by the central bank, the Ministry of Finance, social security and other institutions.
Leveling is not the first of its kind in China, but a financial instrument that has precedents in the world. The most famous leveling in the world**, of courseThe U.S. Plunge Protection Team (PPT), i.e. ** Working GroupIt was established in 1988 by the U.S. Treasury Secretary, the Federal Reserve Chairman, the Securities and Exchange Commission Chairman, and was established as an emergency mechanism for the United States to deal with the crash. The responsibility of PPT is to stabilize the market and avoid the spread of panic through various means, including direct or indirect trading of financial derivatives such as options and options, in the event of a major crisis.
The existence of PPT has always been a legend in the United States, some people believe that it is the protector of **, and some people think that it is the manipulator of **. The specific operation method and effect of PPT has always been a mystery, because its actions are highly classified and rarely disclosed to the public. But there are some events that can see the public intervention of PPT, such as:
On October 19, 1987, the largest one-day drop in history occurred in the United States, with the Dow Jones Index at 226%, triggering a global panic. This incident prompted the United States to set up a PPT to prevent a similar crisis from happening again.
In August 1998, the Russian financial crisis erupted, bringing the U.S.-based hedge** Long-Term Capital Management (LTCM) to the brink of bankruptcy, threatening financial stability in the U.S. and around the world. The PPT coordinated the Federal Reserve and 14 large financial institutions to provide an emergency loan of $3.5 billion to the LTCM, averting a financial catastrophe.
On September 11, 2001, the United States suffered a terrorist attack that caused the United States to close for four days, and after the market reopened, there was a significant increase. PPT injected a lot of liquidity into the market through various channels, stabilized the confidence of the market, and returned to normal levels within a month.
In September 2008, the subprime mortgage crisis in the United States broke out, triggering a global financial crisis, and the American investment bank Lehman Brothers declared bankruptcy. Through the implementation of quantitative easing, PPT has purchased a large number of treasury bonds, agency bonds and mortgage loans, which has provided sufficient funds for the market, eased the market's nervousness, and supported the market.
In addition to the United States, some other countries and regions also have similar leveling**, such as:
JapanThe **Market Stability**, jointly established by the Japan ** and the Japan ** Industry Association, is used to stabilize the stock index and prevent market panic by **or selling ** when there is abnormal volatility.
South KoreaMarket Stability, jointly established by the Korea Industry Association and the Korea Industry Association, is used to stabilize the stock index and prevent market panic by selling or selling during abnormal fluctuations.
Hong KongThe Commission for the Supervisory Commission (SFC) is the market regulator in Hong Kong, which has the power to stabilize the stock index and prevent market panic by selling or selling during abnormal fluctuations.
The introduction of China's version of the standard has the following impact and significance on China's standards:
Enhance market confidence。China has experienced many ups and downs, resulting in a lack of market confidence, large fluctuations in investors' emotions, and susceptibility to various negative or positive influences, resulting in overreaction. The establishment of China's version of the level standard can send a signal to the market, that is, the ability and willingness to act in a timely manner in the event of a crisis, stabilize the market and protect investors, thereby enhancing market confidence and reducing market panic or fanaticism.
Protect against systemic risks。China's scale and influence have reached a fairly high level, and if there are large fluctuations, it may trigger systemic risks, affect the stability of the financial system, and even affect the development of the real economy. The establishment of China's version of the equalization standard can take swift action when systemic risks arise, stabilize the market through purchases and other means, prevent the further expansion of the crisis, and ensure the stable operation of the financial system.
Promote the healthy development of the market。The existence of leveling can provide a buffer mechanism for market volatility to be more stable, avoid excessive volatility and panic selling, and thus provide investors with a more stable investment environment. This will help attract more long-term investors to the market, promote the healthy development of the market, and improve market efficiency.
Guide long-term funds into the market。China's version of the equalization system may intervene in the market in the form of long-term funds, which will help guide more long-term funds into the market and improve the stability and anti-risk ability of the market. Compared with short-term speculation, long-term funds pay more attention to value investment and fundamental analysis, which can inject more stable and healthy capital flow into the market.
Enhance the international influence of China's financial market。With the rapid development of China's economy and the increasing maturity of its financial market, China's financial market is gradually moving towards globalization. The establishment of China's financial market will further enhance the international influence of China's financial market, demonstrate China's determination and ability to maintain the stability of the financial market to the international community, enhance the confidence of international investors in China's financial market, and promote the inflow of international capital.
However, while there are many potential positives for the Chinese version of Pingzun**, there are someControversy。For example, leveling may be used to manipulate the market, interfere with the market pricing mechanism, cause the failure of market resource allocation, and even trigger new market bubbles and risks; For example, excessive intervention in the market may trigger moral hazard for investors, making investors overly dependent on intervention behavior, and no longer paying attention to the fundamentals of the market and their own risk-taking capacity, which may exacerbate market instability and increase investors' risk exposure.
But all in all, if the Chinese version of the standard can be established, it will be an important milestone in the reform and development of the capital market. It is believed that with the help of leveling, the A** field will be more stable, healthy and prosperous.