Regulators Are Trying Their Best To Drive Capital Out Of Reality.

Recent regulatory measures show that China's financial regulatory authorities are comprehensively strengthening the supervision of the financial market. China's financial regulatory system is cracking down on all kinds of speculative speculation and driving funds into the real economy.

Looking back on recent regulatory new measures, we can find ways to strengthen supervision by regulators.

"China's financial purge has quietly started," Liu Yuhui, a professor at the Chinese Academy of Social Sciences, said earlier. "No matter what it is," it has not been "real" since 2012.

No growth, no inflation, corporate profits decline, employment looks ok, and the rest is only a growing financial bubble. "

In order to prevent speculative speculation in the futures market, the three major futures commodity exchanges have been raising the margin level of some varieties, the fee rate and the price limits, so as to cool down the market.

The central bank said in May 6th that in order to implement the financial support for the development of the real economy, we should effectively guard against and control the risk of the bill business and promote the bill.

Orderly development, the central bank and the Banking Regulatory Commission to strengthen the supervision of bills business, standardize business development and other matters.

In May 6th, the securities and Futures Commission said that it had noticed that the market thought that it should pay close attention to the sharp spread of domestic and foreign markets and the speculation of shell resources. The SFC was studying and analyzing Chinese enterprises' overseas delisting through IPO merger and reorganization to A share market.

In May 11th, Reuters quoted sources as saying that the CBRC recently conducted window guidance to some cities' commercial banks and asked them to stop the newly issued classified financial products.

In addition, in May 5th, the CIRC issued new regulations to prevent individual ventures from investing.

In response to a series of moves by the central bank, the Securities Regulatory Commission, the China Banking Regulatory Commission and the CIRC,

Efforts are being made to drive out the funds to "get rid of the facts" and prevent the further formation and expansion of the financial bubble and drive the funds into the real economy.

The report says that since the second half of 2014,

Continued lax and massive liquidity was released.

At the same time, China's stock market, bond market, property market and futures market have been hit.

Among them, the stock market has experienced "lever mad cow" and "lightning bear". The leverage level of the bond market has climbed rapidly, and the black commodity market has also gone through a crazy rise.

Abundant liquidity is like a runaway wild horse, which has left and right in different categories of assets, constantly making bubbles, but has never been able to enter the real economy.

According to the National Bureau of statistics, private capital takes a wait-and-see attitude.

The report commented that regulators must crack down on all kinds of hype and cut off the funds and "get rid of the reality and enter the void".

However, it should be noted that a large number of funds are reluctant to enter the real economy. Apart from some trade barriers, the main reason is that the rate of return that many industries can provide is too low.

While strengthening market supervision and restraining all kinds of speculative speculation, we will promote the pformation and upgrading of traditional industries through the structural reform of supply side, open up the development space of new industries, stimulate the innovation vitality of market entities, and guide capital into the real economy.

Wall Street has also mentioned similar views before, from postponing strategic emerging board to cracking down on futures manipulation, returning stocks from rumors tightening, to remind shell resources speculation, and then to media reports to stop cross-border mergers and acquisitions of virtual industries. Various clues show that regulators are trying to drive capital out of reality.

Earlier analysis said that the next 3-6 months or the key window of China's deleveraging.

Once the foreign financial leverage reduction process is ahead of China, China may face the risk of bubble being passively punctured.