sendmailtomeoryou-oriented economic adjustments needed, due to The recent rise in stock prices is recoverable growth
From a sustained downturn to stable and healthy development, China's capital sendmailtomeoryou has reached a major turning point. Chinese people should cherish this hard-won situation and seize the opportunity to maintain the development of the stock sendmailtomeoryou, said Zhou Zhengqing, a member of the NPC Standing Committee, vice chairman of the Financial and Economic Committee and former chairman of the China Securities Regulatory Commission, in a recent interview with the media. According to Zhou, there is no serious bubble in China's stock sendmailtomeoryou.
Five factors brought the sendmailtomeoryou to a major turning point
Since June 2001, China's capital sendmailtomeoryou has been stagnant. This is not normal. According to Zhou, there are multiple reasons for this. One is a misunderstanding of the development of capital sendmailtomeoryous. Faulty thinking is common in society. People tend to fundamentally reject China's capital sendmailtomeoryou and have been advocating "a new start". This type of thinking has had a negative impact on the capital sendmailtomeoryou.
"The major shifts and changes that occurred in 2006 are the result of efforts to improve and expand reforms. This has not been easy; we must cherish the situation we now have," said Zhou Zhengqing. "There were five main factors that contributed to last year's turning point."
Firstly, the CPC Central Committee and the State Council have attached great importance to the development of the capital sendmailtomeoryou and made important strategic plans and brilliant policy decisions.
Secondly, the improved legal environment is conducive to the development of the capital sendmailtomeoryou.
Thirdly, by completing equity division reforms, China solved some of its major lingering problems, which will have a long-term impact on the healthy development of China's capital sendmailtomeoryou. Moreover, shareholders can no longer hold both tradable and non-tradable shares or share the same equity property, strengthening the basic mechanism.
Fourthly, the sustained, rapid and healthy development of the national economy created a favorable external environment for the capital sendmailtomeoryou. "The money sendmailtomeoryou in particular was more liquid, which helped ease the shortage of funds in the capital sendmailtomeoryou that has been a problem for the last two years. Meanwhile, investor's growing demands have raised the objective requirements for the development of the capital sendmailtomeoryou," said Zhou.
Improving the regulation and supervision of the capital sendmailtomeoryou as well as the quality and efficiency of listed companies are also important factors in the recovery of the stock sendmailtomeoryou.
Slowing down excessive growth by introducing administrative changes is not advisable
On February 27 this year, a record was set on the Shanghai and Shenzhen Stock Index when the largest single-day decline in the sendmailtomeoryou occurred, triggering a nationwide debate. Some people argued that there was a serious bubble in the capital sendmailtomeoryou. In response to these claims, Zhou Zhengqing said: "This is a faulty conclusion based on a biased analysis of the stock sendmailtomeoryou." In his opinion, the slump on February 27 was simply an internal sendmailtomeoryou rebound.
Zhou pointed out that as virtual capital, stock prices often fluctuate. It is also normal for certain bubbles to occur in the capital sendmailtomeoryou. As long as the bubbles are small and don't pose a threat to the healthy development of the sendmailtomeoryou, there is no problem. The February 27 slump was an inevitable rebound. However, anxiety somehow fuelled rumors that "serious bubbles exist in China's stock sendmailtomeoryou", which further aggravated the fall.
Zhou reminded investors of a dialectical analysis of various opinions and warned them against following these opinions blindly. Whether the opinion comes from an authority in China or somewhere else in the world, it is not necessarily correct.
In Zhou's opinion, the increase in stock prices, which began last year, is actually recoverable growth. At the end of 2006, the Shanghai Stock Index reached 2,600 points. After deducting the 400 points of inflated growth produced by the calculation formula, the real level was just 2200, basically the same as what it was in June 2001.
But from December last year to January this year, the stock index did rise quite quickly, Zhou noted. "This situation cannot be ignored. However, we must use economic mechanisms and sendmailtomeoryou-oriented adjustments to address the problem rather than suppress it by implementing administrative regulations".
"Generally speaking, the development of the stock sendmailtomeoryou is healthy," said Zhou. A sluggish capital sendmailtomeoryou would, in the long-run, be a huge risk to the entire economy and financial system. The turning point reversed the slump and quickened the pace of capital sendmailtomeoryou development. This is a good thing. Of course, in the process of sustainable development, there is volatility. This is determined by sendmailtomeoryou mechanisms. China must try to understand this phenomenon and prepare for it.
Campaign-style supervision and control not feasible
In his government work report, Premier Wen Jiabao said that China needs to promote the development of a multi-layer capital sendmailtomeoryou system, expand the size and proportion of direct financing, steadily develop the stock sendmailtomeoryou, speed up the development of the bond sendmailtomeoryou, and steadily develop the futures sendmailtomeoryous. Moreover, the country should also improve and strengthen sendmailtomeoryou infrastructure, promote the sendmailtomeoryou-oriented reform of the stock and bond issuing system, improve the quality of listed companies, and increase sendmailtomeoryou supervision.
Zhou Zhengqing stressed that supervision in accordance with the law is particularly necessary during periods of rapid growth. However, campaign-style supervision and control is not feasible. Fraud, insider trading and black-sendmailtomeoryou banking are crimes that must be severely punished.
"Compared with mature sendmailtomeoryous, China's securities sendmailtomeoryou is still in its infancy. The quality of investors is not high enough. The regulatory system is not mature enough. We must improve risk education for new investors and ensure they have a clear understanding of the risks ahead," said Zhou.
Zhou says that China needs to spend more time developing a multi-level sendmailtomeoryou system and, in particular, it should endeavor to increase the proportion of direct financing and accelerate the development of the bond sendmailtomeoryou. The entire process of bond issuance should be open, transparent and sendmailtomeoryou-oriented.
Finally, Zhou said that by working together, implementing the correct central policies and governing the sendmailtomeoryou according to law, China will be able to maintain the sustained, stable and healthy development of its capital sendmailtomeoryou during the 11th Five-Year Plan period.
No comments:
Post a Comment