Hyping Money In And Out, Do Not Advocate Money Market.

The stock market has just started to pick up. In July 5th, Li Jiange, vice chairman of the Central Huijin, said that it was not pleasant to hear: to restore the financing function of the capital market.

Li Jiange said that the primary function of the stock market is financing. If the capital market is to maintain the share price and slow down the pace of issuing new shares, the stock market will become a trading function without financing function.

It is believed that the first task of the SFC's leading group is to restore the financing function of the stock market after completing a series of rectification of the capital market.

Only in this way can the capital market really link up with the real economy.

Otherwise, it is hyped up and out of funds, and has nothing to do with the real economy.

Therefore, I urge Mr. Li Jiange not to advocate the money market again.

Not responsible for investors, nor responsible for China's stock market, is it responsible for Mr. Li Jiange himself?

Once again, I heard Li Jiange's voice on the issue of new shares, and I felt "very cordial".

For Mr. Li Jiange, he was once the vice president of our SFC, our investor.

The advocacy of IPO and its financing function is the career of Mr. Li Jiange.

In my not strong memory, I have heard Mr. Li Jiange's voice for IPO for many years.

For example, in 2010's "two sessions", Li Jiange, then chairman of CICC, said in a proposal submitted to the "two sessions" that we should speed up the process and promote the early launch of the international board to create conditions for restraining the stock market bubble and releasing too much liquidity.

Also, in April 6, 2013, when Li Jiange, chairman of CICC, attended the "2013 annual meeting of the Boao forum for Asia", he said that the mature markets abroad were not afraid of IPO, and fear IPO was the immaturity of the A share market.

Li Jiange believes that to liberate the IPO, we should see it more positively and increase more blue chips and blue chips in the market.

Li Jiange said that no market in the world has caused severe fluctuations in the market because of the IPO. "The Hongkong market has never said that it will stop IPO, and enterprises will master the rhythm of listing, when to issue and when not to issue."

So, this time, Li Jiange once again encouraged the issue of new shares. I was not surprised or even kind enough to remind me of Li Jiange's remarks in the past.

Besides, as I mentioned the name of Mr. Li Jiange in many articles before, when I mentioned Li Jiange's name again, there was an old friend's feeling. This is another reason why I think Mr. Li Jiange is very friendly.

It is also based on the reason of "old friends", so I would like to remind you in good faith not to drum up the money market again.

The so-called "words and deeds must be lost", the more times Li Jiange advocated, the more prominent his own amateur. As a former vice chairman of the securities and Futures Commission, the current Vice Chairman of the Central Huijin "unprofessional" is a shameful label.

First of all, under the current market conditions, it is out of date to advocate the money market and advocate the financing function of the stock market.

As vice chairman of Central Huijin,

Sir, is the speech so ignored that the market environment? After all, the stock market is in the recovery period after the stock market crash, and data show that in the first half of this year, investors in A shares lost 166 thousand and 800 yuan per capita.

According to another data, the average per capita loss of A share investors has reached 466 thousand and 500 yuan since the stock market crash took place 1st Anniversary years ago.

In such a market environment, Mr Li Jiange said he should not slow down the pace of issuing new shares in order to maintain share prices.

Here, I can not help asking, Mr. Li Jiange, where is the interest of investors? In the face of the rescue of the stock market a year ago, general secretary Xi Jinping and Premier Li Keqiang also said they should guard against systemic financial risks. Is Mr. Li Jiange not afraid of systemic financial risks?

Second, what Mr. Li Jiange said is "recovery".

The formulation of the financing function is obviously wrong, which is not consistent with the actual situation of the stock market.

Because the stock market's financing function has not stopped, and is even very vigorous.

As far as IPO is concerned, the SFC slowed down the pace of IPO because of the market downturn.

This has also led to a decline in the amount of IPO financing in the first half of this year.

In the first half of this year, the A share market completed 63 IPO pactions, raising 31 billion 700 million yuan, compared with 187 pactions in the same period last year, raising 146 billion 200 million yuan, or two indicators decreased by 66% and 78% respectively.

But then again

For example, especially in private placement, it is still in huge financing.

According to statistics from the Investment Research Institute, a total of 328 A share listed companies implemented a private placement scheme in the first half of 2016. The total amount of financing was 821 billion 968 million yuan, an increase of 187.72% compared with 285 billion 680 million yuan in the same period in 2015.

In the face of such a huge increase, can we say that the financing function of the A share market has stopped? Is refinancing not an integral part of the financing function?

Besides, for the current Chinese stock market, the first task is not to "restore the financing function of the stock market", nor to speed up the issue of new shares, but to issue new shares and put the market's financing function under the supervision of strict criminal law.

Li Jiange is not saying that the mature markets abroad are not afraid of IPO? That is because the mature markets abroad have strict laws and convoys, so enterprises themselves will grasp the rhythm of listing.

But the A share market is different. The A share market is not a mature market in itself, nor does it have a strict law. The listing of enterprises means that money is collected, not only by enterprises, but also by large shareholders and supervisors. Therefore, at any time, the impulse to go public is strong. This is why the SFC has to regulate the rhythm of new issue.

Is this the most basic national condition, Mr. Li Jiange, who was once the vice chairman of the SFC, did not understand it yet?