In February, the A-share market saw a significant rebound.
However, most investors have not yet emerged from the gloom of January, with their accounts still showing losses.
On the surface, it seems like a blooming market with a hundred stocks hitting the daily limit up, with gains of 20% and 10% everywhere, but the actual losses have not been compensated for much.
These increases are just a drop in the bucket for investors who were caught at high levels.
Many stocks have not only been halved but have even been kneecapped, and without a 3-4 times increase, they cannot break even.
Most retail investors are kind-hearted because they always have expectations for this market.
The market has not made many effective adjustments, including institutional reforms. It has only given a 10% increase from the lowest point, which has filled everyone with confidence and hope.
This is not because the people in the A-share market are easy to fool, but because everyone has expectations for the future, hoping that the A-share market can be reborn from the ashes.
Such expectations are not the first time.
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Almost every bottom of a bear market will have such a scene.On one side, A-shares have quietly started the process of de-individualization, while on the other side, battered retail investors still harbor hope for the market.
What they are waiting for is institutional reform, crackdown on short-selling forces like securities lending and borrowing, hatred for the unrestrained cashing out by major shareholders, and expectations for market standardization.
Having endured the harsh winter, they hope that spring will last a little longer, rather than fleeting by.
The CSI 300 has fallen for more than three years, and this is the fourth year, with the SSE 50 in a similar situation.
The ChiNext has seen four consecutive quarters and six months of decline, with widespread lamentation.
The STAR Market has even set a record with 10 consecutive monthly declines, which is simply unbearable to watch.
This night is particularly long, coupled with the darkness before dawn, it is especially dark.
The overall decline of market sectors in January exceeded 15%, and most individual stocks started with a drop of 30%.
What we see is half a year of market rescue policies, which have not brought about an increase, but have instead become more deeply entangled.
A comforting phrase to oneself is called, "quantitative change to qualitative change."The continuous accumulation of favorable factors only brought about a real increase at the last moment.
How can one let go of the super tombstone forged by the stimulus of reducing stamp duty in 2023?
A-shares owe too much to retail investors.
This is not only the debt caused by the losses of retail investors, but also because many aspects have not been done well.
Just a moment ago, everyone was still cheering for the new shareholding reduction rules, shouting that it is difficult for major shareholders to cash out without dividends.
Then, on the first day of the new stock listing, the company's shareholders collectively lent out their own stocks, using the limited sale shares for short selling their own stocks.
There are also companies that paid a lot of dividends before going public, but still shamelessly came to raise funds, saying they want to repay debts.
What is the purpose of letting such enterprises go public? Do they not have money themselves and have to ask the market for money?
Retail investors are the most loyal to the market.In the past two years, the market has been in a state of stock game.
After making money in the last bull market, various capitals mostly chose to retreat.
In 2021, after a lot of capital left the market, they declared that they would not return above 3000 points, and they ran away with the money.
But the small investors in the last bull market, whether they made money or not, most of them are still in the market.
Many people have vomited the hard-earned money back, and they are still facing losses, or even huge losses.
In the eyes of capital, it is the greed of human nature, the insatiable hearts of small investors, and the insufficient cognition of small investors.
But in the eyes of small investors, they are eager to have a long bull market like the US stock market.
After all, our GDP is rising every year, why is the stock market short and bearish?
Indeed, the vast majority of small investors have not figured out the way of capital, but this does not affect their expectations for the stock market.
Perhaps from the top down, the biggest role of the stock market is to achieve financing, complete the task of IPO, and help the development of enterprises.Viewing from the bottom up, the stock market is a place where money can be made, not just a place for raising funds, but more importantly, considering the return on investment.
The difference in this lies mainly in what the listed companies actually provide.
They often raise billions of funds, but after raising the money, they fail to bring more returns. The performance changes as soon as they go public, or the money raised is used to repay debts, or to buy bank financial products, which is really chilling.
In order to reduce holdings reasonably, they look for ways out, even resorting to divorce and other means to achieve the purpose of cashing out.
If those who should be working hard to run a business have become people who think about how to cash out from the capital market every day, where is the future of the enterprise?
It is said that there are too few practical entrepreneurs among the listed companies on the A-share market.
In fact, it is not that there are too few, but the proportion is indeed very low.
The overall direction is always correct, whether it is to let a few people get rich first, to drive the majority, or to achieve common prosperity.
But we may not have thought that the erosion of capital has made these people forget their original intention.
When a company starts planning financing, planning to go public, and imagining that it will be able to cash out and lie flat overnight from the day of its establishment, it is difficult for great companies to emerge again.Retail investors regard the A-share market as an investment market, while some entrepreneurs view the A-share market as a place to raise funds and cash out.
The essence of the problem is not about who thinks what, but how the creators and managers of the market should guide and regulate it.
The threshold for listing on the ChiNext and the Science and Technology Innovation Board is indeed not very high.
A company can go public with a profit of tens of millions of yuan a year, and there are still many such companies in China.
Tens of millions of yuan means that it is entirely possible to engage in fraudulent accounting, even to smooth out or pass through accounts.
However, such phenomena cannot be tolerated, otherwise corruption will breed.
We cannot ensure that the market must protect the interests of small and medium investors, but the market should not be dominated by capital, colluding with capital, and losing fairness.
In the investment market, information asymmetry is bound to exist, but information asymmetry is not for the sake of profit, conspiring to create fraud.
For audit institutions, listing sponsors, and underwriting institutions, they cannot package companies for listing together to share the wealth of market investors, which is extremely shameless.
In terms of system design, more thought should be given to how to plug the loopholes in regulation to make the market relatively fair.Mature markets are not regulated by emotions but managed by systems.
Why do overseas stock markets, despite having a plethora of short-selling tools, continue to thrive?
It's not a problem with financial instruments, but with the underlying design, which naturally eliminates junk companies, turning them into penny stocks or even delisting them.
After sifting through, the market retains truly valuable and capable listed companies, which can provide stable returns to investors.
Speculation exists in any era, but a regulated market will encourage investment and share dividends.
As for the A-share market, it should not suppress the cries from the bottom, but more often, actively implement reasonable demands.
Believe that a standardized market can help qualified investors bring substantial returns.
The past losses can be the tuition that must be paid on the road to maturity, and can also become the driving force to make the market more and more perfect.
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