Need to change the secondary stock market

 Secondary stock market needs to change
2008-3-14 Daily News
stock market fell below 4,000 points, the Chinese capital was punctured mask of the times; shares after the reform of the unity of the interests of small shareholders, misappropriating style was explicit ruthlessly tear up the refinancing.
the stock market decline, there are several important reasons.
First, China's share reform to try to resolve mine mm size of the stock market is not unified the interests of shareholders has not been removed. It had been on the price of the share reform hopes and the circulation to the Chinese stock market fair, in fact, the share reform has indeed played a role in short-term pain, class voting shareholders and the share reform negotiation mechanism so that the right of veto for the first time small investors have a role. It is because the share reform of stimulation, only to re-boost the confidence of the Chinese stock market,cheap UGG boots, while the exchange rate reform in 2005, the expected long-standing appreciation of the renminbi, the early inflation gradually rising consumer prices and wages did not increase the good feelings of a large area, so the stock market like a spring breeze.
However, this drop is exposed to the truth once again, desperate to refinance a large shareholder, the total assets and sit back and bigger net profit fell, indicating that the interests of major shareholders and ordinary shareholders are not the same, while the small investors are no longer in the exercise of share reform high gold content of the right to vote, to express their views. This Ping refinancing from the vote, a clear picture of the voting interests are closely linked with peace organizations control, even if all does not help individual investors to vote against all, so investors can only repeat voting with their feet in the market scene, this is the stock market, a common phenomenon before the reform. voting with their feet reach the top, also means that retail investors withdrew funds become a loner.
reason to disregard all the major shareholder financing, and their own interests first, non-destructive, generally speaking, employees and executives of the holding cost is very low. Ping Staff subscription 5654.8 million shares of joint stock funds again, when the price of 1.76 yuan / share. at peace on the first day closing price calculation, Ping An stock value in 10 years more than 26 times. Even with inflation and the risk of impairment, employee stock ownership premium is also ten times. Even if the share price halved peace but what of it, as long as the peace price in October yuan more than a few dollars, you can make a profit. just peace that the company optimistic about the company with growth potential for investors to be in trouble.
Second, the stock market is still in danger of listed companies to the tendency of resource allocation This is also the reason why China's stock market close to collapse of the key factors. before the stock market in the trial period,bailey UGG boots, the stock market instead of banks, to the various non-profitable state-owned enterprises transfer of funds, and now China's economic good, some enterprises have a competitive market, the stock market basic functions to be reflected. but the problem is, some fair without, foul by one of the giant enterprises bigger and stronger stomach to defend the name of the Chinese economy, have listed the amount of financing for days.
but some of the company's financial situation is worrying . such as China's policy of insurance companies and the lack of experience because there is a huge hidden bank rate cut mid .1990, domestic insurance institutions in the pre-1999 policy of high interest rates as a huge , as of September 2006, Ping An insurance business in the year 1999, the effective value of -212.63 billion,UGG boots clearance, as these policies needed in the future, before and after, will reach 170 billion yuan as much. Fortis Ping An shares in the previous acquisition of approximately 40 billion Fukui, if the Fortis share price has not rebounded to the end of the year, losses are bound to be included in company reports. Ping An Insurance last year good profit growth, but pure insurance business and banking losses are likely in the state. eat, have all-round peace and Mixed prospects for the financial license, is the biggest selling point. tidal expansion of financial institutions reflects a crucial issue, because of expansion of the expansion in equity, diluted earnings per share growth expectations, growth in total assets and net growth does not match the overall valuation of the risks faced by financial stocks.
therefore, an urgent need to find safe new profit growth point, but its refinancing program was fierce opposition from investors, indicating investors are not authorized management to have the peace funding commensurate with the scale of sense of responsibility and trust profitability. funds in the policy tilt to the companies under the guidance will make investors lose confidence in the stock market profitability.
Third, capital markets and the stock market valuation of a currency means. < br> from last year, when the global economic structure changes, along with China's economic situation has changed dramatically: from the beginning of the end of October last year against the dollar surged, H shares of regression and the proposed return of red chips, which means the capital further expand the international trend of the market, CPI and PPI continued to rise, while exports declined and manufacturing transfer of surplus, said the Chinese economy could stagflation risks. all the policies are at a critical juncture, and regulation of capital markets as an important tool in the squeeze play economic bubble, the A share and H share price access standards, thereby reducing the triple functions of inflation. worth noting that the H Shares of China Railway Construction share price higher than the first day of listing of A shares, further convergence of the two valuations, H share price as A the number of stocks an important frame of reference.
report the Seventeenth Party Congress runs counter to the premise of not to competitiveness, blind tilt of funds to large corporate, income tilted to large institutions, entities reshaping the economic squeeze the bubble internal injuries, so the market share necessary to change the second, or even several times the share reform.
Note: The beginning of that, H shares is a benchmark, and now, A shares and H shares in valuation practice. more and more small retail investors to gain a foothold, especially after the introduction of margin trading experiment. If you want to stay in the stock market, must be for the international industry standards have the exact understanding of the valuation. night and investment success friends, talk about the matter, do not look at the broader market, to analyze economic events and concentrate on stock selection.
Mr. Zou Hengfu call last night, insisted the U.S. economy good judge, if true, that is the United States passed the crisis conspiracy, or Wall Street people shouting, hoping the pain for all to share. Rockwell brother believes that stock will go to 2400, because inflation can no bull, 4000 corresponding to the Shanghai depth is about 300 times the 2008 price-earnings ratio of 20 should be adjusted to 12 times, this is 2400. because inflation is 8.7%, 8.7 * 12 = 100. If only 5% inflation, you can receive 20 times earnings, but the market is expected throughout the year CPI of 8%. or controversial, do not think that will go to 12 times. let time speak for themselves.
weekend, let us put aside the stock market easy for two days of life there are many others in addition to the money, let's Thanksgiving , thank God,Bailey UGG boots, did not let us be thankful some people do not. that kind of life will pay the price in spirit.
weekend.