Great Wall Motor (601633): August sales against high growth equity incentives highlight long-term development confidence

Great Wall Motor (601633): August sales against high growth equity incentives highlight long-term development confidence
The company recently announced August sales, and the company achieved sales of 7 in August.20,000 vehicles, +9 in the past.52%; of which Haval / Wey / Pickup are sold separately 5.20,000 vehicles / 0.70,000 / 1.160,000, at least +17.04% /-31.2% / + 12.7%.The company’s recently announced stock and equity incentive budgets demonstrate its confidence in development. In August, sales increased against the market and F5 / F7 provided the main positive increase.The CIC announced that the sales volume of narrow passenger cars in August was 156.40,000, at least -9.9%; the company achieved sales of 7 in August.20,000 vehicles, +9 in the past.52%, sales growth rate is significantly higher than the industry; of which Haval / WEY / pickup sales of 5 respectively.20,000 vehicles / 0.70,000 / 1.160,000, at least +17.04% /-31.2% / + 12.7%.In terms of different models, Haval H6 / M6 achieved sales of 2 respectively.5/0.670,000 vehicles, at least -6% / + 62.6%.F5 / F7 sales were 1689/10036 units in the month, as Haval F5 / F7 were listed in October / November last year, providing a major positive increase. Equity incentives streamline the incentive mechanism and demonstrate the company’s confidence in long-term development.The company’s recently announced budget stock and stock budget incentive plan draft plans to grant total equity1 to 1,928 incentive objects including directors, executives and core personnel.8.5 billion shares, the grant price of the budget stock is 4.12 yuan per share, the exercise price of the stock budget is 8.23 yuan / share, the first approved supplementary stock and stock replenishment performance evaluation target, the dual evaluation target for net profit and total sales volume, further establish and improve the incentive mechanism, and fully mobilize the enthusiasm of the company’s directors, executives and core personnel, Interest binding, highlighting the company’s long-term development confidence. Expansion of production capacity against the market, looking forward to new platforms and new products, maintaining the level of “prudent increase”.At present, the Yongchuan factory is about to be completed and put into production. It mainly produces a new model of the Great Wall pickup truck. The Rizhao factory is under planning 合肥夜网 and construction.The company’s domestic overall plan for eight production bases, production capacity expansion against the market expansion, expansion of product categories to make up for shortcomings.Beginning in 2020, the company is expected to launch a new platform. It is expected that a number of new models will be launched. At the same time, the cooperation model with BMW is expected to be mass-produced in 2021. The product is expected to enter a new cycle.In the medium and long term, the company’s opening of the parts system, expedited product exports, fair incentives, and consistent benefits will all enhance the company’s medium and long-term competitiveness.It is expected that the company’s net profit attributable to its mother for 2019-2021 will be 42.1/65.2/69.900 million, maintain “prudent increase” rating. Risk warning: industry sales increase sharply; the company’s new car sales exceed expectations; cooperation with BMW is lower than expected

Ren Zeping’s Five Proposals to Revitalize the Capital Market

Ren Zeping’s Five Proposals to Revitalize Capital Market: Cancel Stamp Duty and Implement Registration System

Five Proposals for Revitalizing the Capital Market: Introduction to Evergrande Research Institute Ren Zeping Matunan Recently, the Politburo Conference focused on capital market reforms, strengthening institutional construction, and stimulating market vitality.

What is the crux of the current national stock market?

How to solve?

  Summary I. The capital market has the role of taking the lead and moving the whole body. The Central Economic Working Conference pointed out that the capital market has the role of taking the lead and move the whole body. It is necessary to deepen reform to create a standardized, transparent, open, energetic, and costlyCapital market.

Capital markets play a very important role in the economic and social transformation and development of developing countries: 1.
The capital market is an important channel for financing of private enterprises.

It is difficult for private enterprises to obtain sufficient financing through the credit market, and the capital market is an important channel for financing of private enterprises.

From 2014 to 2018, a total of 1,118 companies in the A-share market went public, and gradually raised 6,867 net funds.

6 trillion, of which the issuer’s actual controller is a private company of a total of 968 private enterprises, and gradually raised 4,335 net funds.

700 million yuan, accounting for 86.

6% and 63.

1%.

  2.The capital market is an important support for the vigorous development of the new economy.

Undoubtedly, many important high-tech companies have obtained important assistance for corporate development through IPO financing.

In the early stages of enterprise development, multi-level capital markets represented by PE and VC played a more important role.

Unlike bank credit, which tends to be traditional, PE and VC investments are clearly biased towards high-tech, high-tech manufacturing and other fields, which have created advantages in Internet +, artificial intelligence, and 5G.

The number of China’s new economy unicorn companies is second only to the United States in the world, and is closely related to the support of the capital market.

  3.The capital market is an important hand to prevent and resolve financial risks.

In 2018, the risks of equity pledge deposits were widely exposed. The important reason was that the stock fell and the equity pledge deposit plunged into a negative feedback loop.

To resolve the risks of equity pledge business, we must alleviate the difficulties of listed companies through various methods such as equity, debt, and hybrid.

But it is more important to restore the vitality of the stock market, to date the source of funds, to prosper the market, and to fundamentally resolve the crisis of equity pledge.

  Second, the five recommendations to activate the capital market The current average A-share market is estimated to be relatively low, and risks have been released to some extent.

Appropriately adopt the five major reform measures to revive market confidence, activate market sentiment, enhance market potential, and make the capital market better serve the real economy.

  1.Restore market mechanisms, reduce administrative intervention, stabilize market expectations, and restore market confidence.

In order to ensure stock disasters and maintain stability, regulators continue to strengthen supervision of the capital market. Due to the inadequate institutionalized supervision system, temporary policy interventions have been introduced, and window guidance has increased.

For example, some public funds reflect window guidance received, are restricted from net selling, and large-selling actions are prohibited.

Although these measures are intended to maintain market order, they objectively increase the arbitrariness of regulatory policies, resulting in expected market variables and market mechanisms being suppressed, which is not conducive to the long-term healthy development of the market.

From international experience, the core of securities supervision in developed capital markets is to establish market-oriented, clear, predictable regulatory rules, and vigorously punish violations, rather than directly intervening in the market through administrative means.

  We suggest that we should gradually reduce administrative intervention in the market, lower transaction restrictions, enhance market liquidity, stabilize market expectations, and “unbundle” market participants who have suffered excessive restrictions in the early stage.

For market-neutral trading methods such as short selling mechanisms, leveraged trading (margin financing and margin trading), and high-frequency trading, it is necessary to establish and improve institutional standards and reduce one-size-fits-all measures.

  2.Accelerate the reform of the stock issuance registration system.

At present, the general stock market adopts an approval system for listing of enterprises.

From the perspective of implementation effects, it is easy to cause enterprises to over-packing, unreasonable pricing, speculation on shell resources, and the four major problems of energy rent-seeking and corruption.

  The registration system is the reform direction of stock issuing systems in developing countries.

We believe that to do a good job in the reform of the registration system, we must first improve the market-oriented issuance system and require the development of supporting systems.

It is necessary to establish a market-based delisting mechanism to ensure that the market can continue to adopt new ideas and form a healthy competition mechanism.

It is necessary to establish a strict information disclosure system to ensure true, complete and timely information disclosure.

It is necessary to increase supervision, increase the level of supervision during and after the event, and increase the deterrent effect of supervision.
  3.Improve the investor structure of A shares.
In the current year, the proportion of positions held by institutional investors in the A-share market is only 16.

1%, significantly lower than the previous market.

The turnover of individual investors accounted for as high as 82%, and the average annual turnover of Shanghai and Shenzhen cities reached 189.

6%, which is significantly higher than the major developed markets. The pricing of the A-share market was intervened by individual investors, and the speculative atmosphere was too strong.

The A-share market volatility caused by an excessively high proportion of individual investor transactions; three major issues, such as focusing on policy trends and ignoring fundamental analysis; and institutionalization of retail investors.

  The initial low proportion of institutional investors in the A-share market is that at the beginning of the establishment of the internal stock market, there were no institutional investors specializing in securities and securities investment for a long time.

Since 2000, the proportion of long-term professional institutional investor positions has increased, but the overall can still be replaced.

It is precisely because of the long-term stable sources of funding for institutional investors, and because of the intertwined and thick A-share speculation, that under the constraints of fiduciary responsibilities, institutional investors have reduced their positions and risks.

  We propose to appropriately relax the limit on the proportion of the occupational population of pensions not to exceed 30%, and accelerate the speed at which pensions in various provinces and cities invest in the stock market in the form of agreement with the social security fund.

When assessing pension benefits, the focus should be on the mid-to-long term and absolute returns as the focus of assessment, and to provide a stable medium- and long-term source of funds for the stock market.

In addition, it is recommended to pilot the fund industry from a short-term performance ranking to a long-term absolute performance assessment on the basis of full research, change the short-term behavior trend of the fund industry, gradually form the concept of long-term investment, value investment, and increase the institutional investor’s shareholding ratio.Promote the healthy development of stock markets in developing countries.

  4.Improve the design of the trading system.

1) Further regulate the suspension of listed companies.

The suspension of trading by listed companies at random, the long-term suspension of trading seriously affects the liquidity of the stocks, and the damage to investors’ right to know and trading rights is an important issue for stocks.

At present, the regulatory agencies have resolved related issues and solved them by improving the institutional system and strengthening supervision.

We believe that strengthening supervision and emphasizing implementation, the exchange can compulsory relisting for listed companies that have no clear reason to suspend trading for a long time, or have multiple vague reasons for suspension.

For major asset reorganizations or asset reorganizations, the time limit for suspension of trading shall be appropriately extended, and the suspension of trading shall be prolonged at will for general reasons such as the complexity of the transaction and the involvement of many parties.

When the market is significantly abnormal and liquidity collapses, the exchange should deal decisively and suspend the application for suspension of enterprises to ensure the normal operation of market functions.

2) Cancel stamp tax on stock transactions and reduce market transaction costs.

With the advent of the era of electronic and paperless transactions, the tax base of stamp duty has changed significantly, and the rationality of continuing to levy stamp duty on stock transactions has declined.

Historically, the adjustment of the stamp duty rate was adjusted to the name of the supplementary market, but it could not change the overall trend of the stock market, but intensified short-term changes.

Emerging markets such as the United States, Germany, and Japan have eliminated stamp duty on securities transactions.

It is suggested to cancel stamp duty on securities transactions in a timely manner according to market conditions.

There are two advantages: reduction. According to the 2018 data, the stamp duty on securities transactions accounts for only 0% of general budget revenue.

After the cancellation, there will be little financial pressure.

At the same time, the abolition of stamp duty on securities transactions will reduce market transaction costs, enhance investor confidence and capital market vitality, and promote healthy market development.

  5.Improve the legal system and strengthen investor protection.

The current Securities Law increases the upper limit for many illegal activities to 600,000 yuan.

The Criminal Law has a maximum sentence of 10 years for high-level inside information, but the actual sentencing is generally 3-5 years.

With the developed capital market index, the previous relevant laws imposed relatively light sanctions on illegal and criminal acts, making it difficult to effectively protect investors.

In addition, through the continuous development of the market, the existing securities law still has the problem of being unable to adapt to the new market conditions, so it needs to be resolved through amendments.

  We propose to speed up the revision of the Securities Law, significantly reduce regulations in areas such as securities issuance, and at the same time strengthen law enforcement, increase penalties for securities violations and crimes, and strengthen regulatory deterrence.

Improve the level of supervision during and after the event.

In terms of criminal responsibility, for the serious crimes of securities, the sentencing standards should be appropriately raised, the behavior of disrupting the market order, manipulating prices, and fraudulent acts should be continuously improved to continuously improve the legal environment of the securities market.

  Risk reminder: Policy promotion is less than expected. 1 Capital markets have a direct effect on the whole body1.

1 The capital market is an important channel for financing of private enterprises.

2 The capital market is an important support for the vigorous development of the new economy.

3 The capital market is an important tool to prevent and mitigate financial risks 2 Five suggestions for activating the capital market 2.

1 Restore market mechanisms, reduce administrative intervention, stabilize market expectations, and restore market confidence 2.
1.
1 Administrative intervention disrupts market expectations, market mechanisms cannot function, and market efficiency is reduced.

1.

2 Reduce administrative intervention and strengthen institution building 2.

2 Accelerate the reform of the registration system for stock issuance 2.

2.

There are four major shortcomings in the approval system: excessive packaging, irrational pricing, and speculation in shell resources, which has led to energy rent-seeking and corruption.

2.

2 The approval system is the result of the incomplete marketization of the stock issuance system.

2.

3 The reform of the registration system is conducive to the formation of a more market-oriented institutional system in the stock market2.

3 Improve the structure of investors in the A-share market

3.

1 Institutional investors in the A-share market hold a low proportion of the stock market value and transaction size2.

3.

2 The strong speculation baseline and long-term continuous funding sources make it difficult for institutional investors to grow.

3.

3 Continue to encourage pensions to enter the market, and improve the institutional investor evaluation method2.

4 Improve the construction of the trading system 2.

4.

1 Further regulate the suspension of listed companies 2.

4.

2 Cancel stamp tax on securities transactions and reduce market transaction costs 2.

5 Improve the legal system and strengthen investor protection 2.

5,

The one-year law was suspected of overreporting some securities violations. On October 31, 2018, the Political Bureau of the Central Committee of the Communist Party of China focused on capital market reforms, strengthening institutional construction, stimulating market vitality, and promoting long-term healthy development of the capital market.

The Central Economic Work Conference pointed out that the capital market has a direct effect on the financial operation. It is necessary to deepen reforms to create a standardized, transparent, open, dynamic, and powerful capital market.

Recently, the vitality of the long-term capital market has improved due to the externalities, overlapping market and policy factors.

There is a need to further improve policies to stimulate the vitality of the capital market.

  1 The capital market has the effect of affecting the whole body.

1 The capital market is an important channel for private enterprise financing. The private economy has an important position in the entire economic system, contributing more than 50% of the variables, more than 60% of GDP, more than 70% of technological innovation, and more than 80% of urban labor employment.More than 90% of new jobs and businesses.

However, because the amount of collateral cannot meet the bank’s credit requirements and the government’s “hidden guarantee”, the difficulty of financing for private enterprises in the credit field is outstanding.

The data from the sample survey conducted by the Chinese Academy of Fiscal Sciences shows that from 2015 to 2017, the ratio of private enterprises in the sample to the current number of bank loans obtained by the company declined rapidly from 63% to only 15%.

Credit resources are clearly tilted towards state-owned enterprises.

In fact, in the context of tight financial supervision, the expansion of non-standard financing that private enterprises rely on has shrunk, and the proportion of non-standard financing of sample companies in the financing scale of private enterprises has dropped from 43% to 15%, and the increase in bank credit cannot hedge the shrinking of non-standard financing, Resulting in a decline in the total scale of private enterprise financing.

Traditional loans are the highest, and non-standard financing tightens the financing difficulties of all private enterprises.

  However, under the role of the market mechanism, private enterprises with better qualifications or development prospects can obtain capital market recognition through adequate information disclosure and sound corporate governance.

Therefore, the capital market is an important way for private enterprises to obtain financing.

As of the end of 2018, there were a total of 3,580 listed companies in the Shanghai and Shenzhen A-share markets, and there were 2,298 private listed companies whose natural controllers were natural persons, accounting for 64%.

From the perspective of financing, from 2014 to 2018, a total of 1,118 companies in the A-share market went public, and gradually raised 6,867 net funds.

6 trillion, of which the issuer’s actual controller is a private company of a total of 968 private enterprises, and gradually raised 4,335 net funds.700 million yuan, accounting for 86.

6% and 63.

1%.

The capital market has become an important source of financing for private enterprises.

  1.

2 The capital market is an important support for the vigorous development of the new economy. The pre-development stage cannot be separated from innovation.

The new economy, which is definitely represented by the Internet economy and high-tech medical services, is booming and has become a key engine for gradual economic transformation and industrial upgrading.

Such companies are often early in the life cycle and have difficulty accessing banking system financing.

Capital markets can better solve this problem.

Many important high-tech companies, such as BAT, JD.com, Xiaomi, etc., have obtained important assistance for corporate development through IPO financing.

However, due to equity structure, 厦门夜网 regulatory rules and other reasons, these companies have instead entered the domestic A-share market, so domestic investors have lost the opportunity to directly share the development dividends of these companies.

From the side, this highlights the importance of improving the capital market system and attracting outstanding internal companies to go public.

  At the start-up stage of new economy enterprises, multi-level capital markets played a more critical role.

Absolutely, the rapid development of the venture capital industry represented by PE and VC has provided an important guarantee for the vigorous development of the new economy.

The total annual PE and VC investment in 2018 reached 1.

17 trillion yuan, an increase of 72% in ten years.

From the perspective of industry investment, unlike bank credit, which tends to be more traditional, PE and VC investment is obviously biased toward information technology, new retail, new energy vehicles, medical care and other high-tech and high-tech manufacturing industries.

Among them, the Internet software and services and information technology consulting industries accounted for 17% of funds.

5% and 15.

7%, replacing pre-shipment in all sub-sectors.

The continuous development and growth of these high-tech companies has provided high returns for high-risk expected funds, and at the same time promoted each other, creating complementary advantages in the fields of Internet +, artificial intelligence, 5G, etc.The world is second only to the United States and is closely related to the support of capital markets.

  1.

3 The capital market is an important tool to prevent and mitigate financial risks. Preventing and mitigating major risks is the first of the three major battles, and financial risk is an important part of it.

In 2018, A-shares continued to fall, and the risks of equity pledge by major shareholders were widely exposed, forming a negative feedback cycle with the decline in stock prices.

The ownership of equity distribution is mainly private enterprises, and the proportion of equity distribution of some enterprises breaks through. Once the liquidation line is reached and a forced liquidation is triggered, corporate control will be transferred. Therefore, the exposure of allocation pledge risk to market confidence and liquidity will cause certainShock.

In 2018, there were more than 1984 A-share listed companies participating in equity pledge, accounting for 55% of the total number of listed companies, of which 1666 were private companies, accounting for 46% of the total number of listed companies, and 72 of the number of private companies.

5%, indicating that most private companies in the market have already participated in the equity pledge business, so once the risks are exposed, the impact will occur.

  Part of the reason for the exposure of equity quality risk is that the risks of shareholders of some listed companies have increased too high, and their operating style is radical. They use stock pledge financing to increase their holdings or use them for businesses that are not related to the company’s main business.There will be a liquidity crisis.

However, there are also some private enterprises that participate in fair pledges because normal channel financing is blocked.

In the context of tight supervision, non-standard financing has shrunk and targeted issuance has been blocked, while bond financing has high costs due to frequent occurrences of defaults by private enterprises, lowering bank risks and severely harming private enterprise loans.

Approximately, before the Shanghai Stock Exchange issued the “Measures on Stock Pledged Repo Transactions and Registration and Settlement Business” in March 2018, equity pledge financing was relatively convenient, and there were no strict restrictions on the use of funds, so it was favored by listed companies.

  To resolve the risks of equity pledge business, it is necessary to provide temporary liquidity assistance to companies with good development prospects, and provide relief through various methods such as equity, debt, and mixing.

The “Notice Concerning Issues Related to Stock Pledged Repo Transactions” was recently issued, optimizing the contract extension arrangements for default contracts, and relaxing restrictions on the concentration of single ticket institutions, the upper limit of the pledge ratio, and the upper limit of the pledge rate.

It can also play an important role in defusing stock pledge risks.

But it is more important to restore the vitality of the stock market, to date the source of funds, to prosper the market, and to fundamentally resolve the crisis of equity pledge.

Currently, the A-share market is expected to be at a relatively low level, and risks have been released to some extent.

Appropriately through further reforms, revitalize market confidence, activate market sentiment, enhance market potential, and make the capital market better serve the real economy.

  2 Five recommendations for activating capital markets 2.

1 Restore market mechanisms, reduce administrative intervention, stabilize market expectations, and restore market confidence 2.

1.1 Administrative intervention disrupted market expectations, the market mechanism could not function, and market efficiency was reorganized. In order to cope with stock disasters and maintain stability, regulators continued to strengthen supervision of the capital market, and gradually played an important role in cracking down on securities violations and laws and boosting market confidence.
However, in this process, due to the inadequate institutionalized regulatory system, the introduction of temporary policy reforms and increased window guidance.

Have a certain impact on normal market financing and transactions.

  From the perspective of the issuance budget, in order to improve the quality of listed companies and protect small and medium investors, the supervisory authorities have strengthened the verification of financial indicators of listed companies and refinancing companies.

However, in the actual process, the problem of repeated changes in financial data standards has arisen.

State media reports that regulators often predict window indicators for financial indicators when conducting IPO and refinancing reviews, and relevant personnel will proactively contact companies that do not meet the requirements, and sometimes will actively dismiss issuers.

This leaves market participants feeling at a loss, adding excessive transaction and communication costs.

  From the perspective of trading expectations, after the abnormal fluctuation of the stock market in 2015, the supervisors attach great importance to stabilizing the market, and the window guidance for trading has increased significantly.

According to media reports, at the end of 2017, “some stocks that had experienced large gains in the earlier period entered an adjustment period, causing some market members to panic.

Public funds intervention window guidance, that day was restricted to net selling, large-selling behavior was prohibited.

“When the market is growing rapidly, there is also a window of guidance. A person in charge of private equity investment stated that” there is a limit buying, and the regulatory authorities have called ‘advised’. ”

“At the same time, many quantitative funds have also received guidance from the window. For those transactions that are more alternative, the regulatory authority will take the form of oral notification, hoping to reduce the frequency of transactions and stabilize market fluctuations.

In fact, the high turnover rate of stocks does not necessarily cause price fluctuations, but too many window indications may cause market expectations to be unstable, inhibiting market participants’ trading intentions, leading to reduced liquidity, and increasing market risk.

  2.

1.

2 Reduce administrative intervention and strengthen system construction. Although the above-mentioned supervision measures are intended to improve the quality of listed companies and maintain market order, they objectively increase the arbitrariness of regulatory policies, resulting in expected market consequences, and market mechanisms are suppressed.Conducive to the long-term healthy development of the market.
In fact, the qualification determination of listed companies is completed by the regulatory authority, or should be given to professional institutions and investors in the market. The regulatory authority is responsible for the system construction to ensure the integrity and authenticity of information disclosure.

Otherwise, no matter how strict and strict financial standards are formulated, once there is a problem with the authenticity of financial information, it will seriously affect investors.

From a trading perspective, the market in developing countries already has a limit system. If the window guidance is used to restrict transactions, it will only further expand market liquidity and inhibit the market’s price discovery function, which is not conducive to the long-term healthy development of the market.

  From international experience, the core of securities supervision in developed capital markets is to establish market-oriented, clear, predictable regulatory rules, and vigorously punish violations, rather than directly intervening in the market through administrative means.

In addition, if a large number of regulatory forces are concentrated on examination and approval and window guidance, the power of the audit system and the judicial system will be relatively insufficient, and it will be difficult to form an effective deterrent effect on acts that disrupt market order, and it will be difficult to form truly effective supervision.

  We suggest that we should gradually reduce administrative intervention in the market, lower transaction restrictions, enhance market liquidity, stabilize market expectations, and “unbundle” market participants who have suffered excessive restrictions in the early stage.

The current stock market is estimated to be low, and the market risk has been greatly reduced from the baseline.

Continuing to implement the preliminary temporary supervision policy will not be conducive to the restoration of market confidence and the accumulation of popularity, and will not help prevent and resolve financial risks.

For market-neutral trading methods such as short selling mechanisms, leveraged trading (margin financing and margin trading), and high-frequency trading, it is necessary to establish and improve institutional standards and reduce one-size-fits-all measures.

  2.

2 Accelerate the reform of the registration system for stock issuance 2.

2.

1 The approval system has four systems: excessive packaging, unreasonable pricing, speculation on shell resources, and the four shortcomings of energy rent-seeking and corruption.

The CSRC formulated the “Administrative Measures for the Initial Public Offering of Shares and Listing” (referred to as the “Measures”) to review the application for listing of enterprises, and to approve the public offering of shares after passing.

From the actual effect, the approval system has the following problems.

  First, it is easy to cause enterprises to over-pack.

The Securities Regulatory Commission clearly stipulates in the Measures and supplements the company’s certification: 1) the net profit in the last 3 fiscal years can be converted into a positive number and gradually exceeds RMB 30 million; 2) the net cash flow from operating activities in the last 3 fiscal yearsThe amount has increased by more than RMB 50 million; or the operating income in the last three fiscal years has exceeded RMB 300 million; 3) The total share capital before issuance has exceeded RMB 30 million; 4) The intangible assets at the end of the most recent period (investment in land use rights, surface culture)Rights and mining rights, etc.) The proportion of net assets is not higher than 20%; 5) There is no unsubstituted compensation at the end of the most recent period.

The original intention of these financial requirements is to ensure that the listed companies are in good operating conditions, prevent the company from being listed on the market, and protect the legitimate rights and interests of investors.

However, in practice, some companies will meet the above requirements by beautifying their financial statements, and even suspect financial fraud, which infringes on the legitimate rights and interests of investors.

  Second, it is easy to cause the issue pricing to be unreasonable.

Because companies need to go through the approval process for listing, the primary market is prone to over-priced companies that have passed the approval process.

After the listing, the secondary market prices of stocks continued to drop, causing injustice to secondary market investors.

In order to solve this problem, the CSRC issued the “Notice on Issues Related to the Pricing of New Shares Issuance” in 2012, requiring that the price-earnings ratio of the issue price prepared based on the inquiry result be higher than the average price-earnings ratio of listed companies in the industry by 25%.The board of directors confirmed the issue pricing and discussed and analyzed the risk factors of pricing and their related effects. In fact, it provided guidance on the upper limit of the issue price.

Rather, it has limited the issue prices of some companies, causing stocks to rise and fall continuously after listing, and other problems such as irrational transactions in the secondary market.The approval system weakened the market-based pricing mechanism and interfered with the pricing of the primary stock market.

  The third is to promote the speculation of shell resources in the A-share market.

Under the approval system, the value of listed companies is fully reflected in the company’s performance, and the listing qualification itself is also possible.

This has led to the speculation of shell resources that has invaded the A-share market for many years.

Some listed companies have poor operating performance and should be gradually eliminated by the market. However, under the existing system, these companies have improved their financial statements through mergers and reorganizations, thereby avoiding the fate of being delisted.

There are also some companies listed on the curve through the acquisition of listed shell companies.

However, in this process, a series of problems such as financial fraud have arisen.

For example, in order to prevent stocks from being specially dealt with by the Shenzhen Stock Exchange and to maintain the qualifications for restructuring and listing, the listed company of Shenzhen Stock Exchange, Sun Leda, conducted a series of financial frauds in 2015 through inflated income and profits.Fines such as market bans and fines were imposed.

Judging from the performance of the secondary market, recently, the continuous daily limit of shell stocks such as Hengli Industrial, * ST Changsheng (right protection), significantly changed the company’s fundamentals, showing that the problem of shell stock speculation still exists.

  The fourth is to breed power rent-seeking and corruption.

Listing financing is critical to the development of many enterprises. Under the approval system, staff of the relevant departments of the Securities and Futures Commission have a significant say in whether the company can be listed, which naturally leads to rent-seeking and corruption.

Judging from the situation of the officials of the Securities and Futures Commission system that has been disclosed since the 18th National Congress of the Communist Party of China, most of the officials have a relationship with the issuance and approval of corporate listings, and most of their crimes of corruption and bribery occurred during their tenure or in charge of the issuance department.

  2.

2.

2 The approval system is the result of the unfinished marketization of the stock issuance system. The recognition system of the A-share market is the result of the unfinished marketization reform.

Looking back at the reform history of the A-share market, the IPO system has gone through a process of multi-department approval to the approval system of the CSRC and then to the approval system. Although the degree of marketization has continued to improve, a comprehensive marketization system has not yet been formed.

  From 1990 to 1992, the right to approve the issuance and listing of new shares belonged to different government departments: the reform of the company’s shareholding system was approved by the Planning Commission, the Reform Commission, the issue of shares was approved by the People’s Bank of China, and the listing of shares was approved by the Shanghai and Shenzhen Stock Exchanges.

  In April 1993, the listing of A shares was changed to the approval system.

The “Interim Regulations on the Administration of Stock Issuance and Transaction Management” stipulates that the competent departments of central enterprises and local governments shall review and approve the issuance applications of relevant enterprises according to their affiliations, and the CSRC will review and copy them to the Securities Commission.

The Regulation establishes a two-level administrative approval system and unifies the foundation of the IPO review structure across the country.

  In 1999, the A-share issuance system was changed to an approval system.

The “Securities Law of the People’s Republic of China” formally implemented in July stated that “the securities regulatory authority of the State Council is responsible for approving applications for stock issuance in accordance with statutory conditions, the approval procedures are properly disclosed, and supervision is conducted according to law”, “the date of the appropriate application documents for own securities issuanceA decision is made within three months from the beginning; if it is not approved or approved, an explanation is given as appropriate.

The marketization of IPOs has increased significantly.

The submission of the “Interim Measures for the Sponsorship System for Securities Issuance and Listing” in February 2004 marked the entry of new shares into the sponsorship stage.

Since then, the CSRC has further improved market-oriented reforms in establishing a sponsorship system, pricing of new shares, and the scale of issuance. However, it still retains the power to finally approve the company’s listing.

The issue mechanism of the A-share market has not been fully market-oriented.

  2.

2.

3 The reform of the registration system is conducive to the formation of a more market-oriented system of the stock market. Due to the above-mentioned problems with the approval system, registration has become the reform direction of the listing system.

The information disclosure requirements and basic market standards formulated by the CSRC under the registration system and the approval system are responsible for reviewing the authenticity of the information disclosed by listed companies, and do not impose requirements on the operating performance and qualifications of listed companies, as long as the enterprise meets the basic standards,If the information provided is true, it can be registered and listed, and the pricing is also done by the market independently.

The registration system has played the role of the market mechanism in the listing process of enterprises, and at the same time reduced the problems of excessive packaging for listing, unreasonable pricing and power rent-seeking by the market.

At present, the major expected stock markets in the world, such as the New York Stock Exchange, Nasdaq, and London Stock Exchange, all adopt registration systems.

  Since the reform of China’s registration system started in 2013, it has been moving forward in twists and turns.

In November 2013, the Third Plenary Session of the Eighteenth Central Committee resolved to advance the reform of the registration system for stock issuance.

In May 2014, Nine Articles of the New Country proposed to actively and steadily advance the reform of the registration system for stock issuance.

In March 2015, the CSRC meeting stated that the first draft of the reform plan for the registration system had been completed and submitted to the State Council.

Subsequent fluctuations in the stock market occurred and reform of the registration system was hindered.

In March 2018, the Standing Committee of the National People’s Congress decided to extend the authorization for the reform of the stock issuance registration system by two years.

  On November 5, 2018, General Secretary Xi Jinping proposed at the China Import Expo that the Shanghai Stock Exchange establish a science and technology board and pilot registration system.

The higher-ranked stock reform ideas are incremental reforms.The change of thinking reflects a more prudent policy orientation.

At present, the scale of the main board market is competitive, and the difficulty of reform is increasing. Reforming the registration system directly in the main board market is likely to have an impact on the existing financial system.

Add science and technology board and implement the registration system reform, explore effective rules and measures of issuance, listing, trading, information disclosure, supervision, delisting, etc., and obtain successful experience, and then promote to the main board market in a timely manner, which will effectively reduce the minimum capitalThe cost of market reforms is conducive to the advancement of market-oriented reforms.

  On January 23, 2019, the Sixth Meeting of the Central Committee of Comprehensive and Deepening Reform passed the “General Implementation Plan for Establishing a Science and Technology Innovation Board on the Shanghai Stock Exchange and Pilot Registration System”,Regarding the implementation of the pilot registration system and other important documents, the reform of the registration system continued to advance.

We believe that if the registration system is to achieve its due effect, we must not just replace the listing and reform, but must establish a series of alternative supporting measures such as trading, supervision, and delisting to ensure that the registration system reform can achieve the correspondingeffect.

  (1) The construction of the listing system and the delisting system is equally important.

Taking measures can effectively reduce regulatory intervention in the listing process and effectively reduce corruption and rent-seeking.

At the same time, only if an effective delisting system is established and strictly enforced, and new ideas are continuously introduced to form healthy competition, the market can continue to maintain vitality.

If a large number of enterprises with low qualifications and low turnover are flooded into the market, it will inevitably weaken the market’s vitality and will not be conducive to the long-term stable development of the market.

Establish a proper delisting system appropriately, specify the destination of delisted enterprises, and strictly enforce it.

At the same time, we must prevent malicious delisting and protect the legitimate rights and interests of investors.

  (2) Strict information disclosure system is the core of the registration system.

Under the registration system, the focus of the supervision department is no longer on reviewing the qualifications of listed companies, but on the quality of corporate information disclosure.

Therefore, it is necessary to establish a unified, standardized, and efficient information disclosure system that seriously violates information disclosure rules and discloses false information.

  (3) Improve the legal system of the capital market.

At present, the upper limit of the number of alleged degrees stipulated in the “Securities Law” is only 60 million U.S. dollars in the capital market where illegal gains are hundreds of millions. Too low an alleged degree cannot overcome the impact of regulatory shocks. Instead, it has created a variety of infringements on investorsEquity behavior.

A new round of amendments to the Securities Law was initiated as early as 2014. However, due to the constantly changing market environment, the replacement of the Securities Law has been postponed, which has hindered the progress of related reforms.

Taking the establishment of the Science and Technology Innovation Board as an opportunity, we will accelerate the relevant legislative work and promote the gradual construction of the legal system of the capital market.

  2.

3 Improve the structure of investors in the A-share market

3.

1 Institutional investors’ shareholding value and transaction scale are relatively low in the A-share market. With the developed market index, the main problem facing the A-share market is that institutional investors ‘shareholding value is relatively low. General legal persons and individual investors (retails)The proportion is high, and the volume of individual investor transactions is relatively high.

A large number of retail-led transactions led to a serious herd effect in the A-share market, which caused excessive market price fluctuations.

  According to the data displayed by the Shanghai Stock Exchange, the proportion of institutional investors holding stock market value at the end of 2017 was 16.

1%, of which the market value of investment funds accounts for only 3.

3%.

Individual investors hold 21% of the shares.

2%, general corporate (industrial capital) shares accounted for up to 61.

5%.

  In summary, institutional investors in the stock market account for a higher percentage of overall returns.

At the end of 2017, the market value of institutional investor stocks in the US stock market (Nasdaq and NYSE) accounted for 61% of the total market, of which 23% were held by mutual funds, and 11 by government and private pensions.

9%, with foreign investors accounting for 15%.

Individual investors hold 39% of the stock market value.

  Institutional investors in the British stock market account for 83% of the market value.

3%, of which the proportion of domestic institutional investors.

4%, foreign investors accounted for 53.

9%, mainly including various international financial institutions, pensions, charities, investment funds, etc., indicating that the UK’s capital market is more open.

Individual investors hold only 12.

3%.

The UK stock market has exhibited the characteristics of an expected institutional shift.  Japanese institutional investors hold 61% of the stock market value, of which domestic and international institutions each account for 30%.

General legal person shares account for 21%, which is relatively high in the overall market, but still far below the previous level of 61%.

  Because the institutional investor’s shareholding ratio is low, and some of the shares held by legal entities are restricted from circulating, the transaction ratio of individual investors in the secondary market is significantly higher.

In 2017, individual investors accounted for 82% of the transaction volume, while professional institutional investors accounted for 14.

76%, of which the trading volume of investment funds accounts for only 4.

15%.

  Judging from the turnover rate, the turnover rate of the A-share market continues to exceed that of other major stock exchanges.

The average annualized turnover of the Shanghai Stock Exchange since 2009 replaced 194.

1%, Shenzhen Stock Exchange is 335.

9%, higher than 108 on the NYSE.

6% and 63% on the London Stock Exchange.

During the abnormal fluctuations of the stock market in 2015, the turnover rate of the Shenzhen Stock Exchange exceeded 800% at one time, and the market speculative fluctuations were strong.

  The relatively high proportion of individual investors ‘transactions indicates that the pricing of A shares has been interfered by individual investors, leading to three problems: First, the characteristics of individual investors’ transactions exist and cause them to chase up and down.Market prices fluctuated.

Second, professional investors were rated. Individual investors lacked in-depth understanding of the company’s financial and operating conditions, paid little attention to trading technology, and paid too much attention to subject speculation and policies, which easily overestimated stock prices.

Third, because institutional investors need to accept the market prices of individual investors and play games with them for a long time, some institutions have gradually shown a “retailing” trend in transactions.

  2.

3.

2 The speculation has strong pores, long-term sustainable sources of funds, and other reasons that make it difficult for institutional investors to develop and grow the stock market. Retailing is inseparable from this development process.

In the early days of the establishment of the traditional securities market, influenced by the ideas of the planned economy, the stock market was subject to administrative control of intervention.

For example, the “Decision of the Central Committee of the Communist Party of China and the State Council on Grasping Several Tasks in the Recent Breakthrough of Anti-Corruption” issued in 1993 pointed out that cadres at and above the county level buy and sell stocks.

The “Regulations on the Reorganization of State-owned Enterprises and Listed Companies’ Speculation in Stocks”, which was issued in 1997, clearly states that this enterprise must not speculate in stocks.

Bank funds and insurance funds are also prohibited from entering the market.

In addition, the fund industry has not yet been established, and there is no distance for the A-share market to specialize in professional institutional investors.

Dating foreign institutional investors is even more difficult to talk about.

In this context, individual investors have naturally become the main investors in the A-share market.

  In 1998, the first batch of public fund companies was established, and it is hoped that through the appointment of professional institutional investors, it will attract social funds and gradually develop and expand the institutional investor group.

In 2003, the social security fund officially entered the stock market.

Since then, the proportion of institutional investors has increased.

But at present, due to various regulatory restrictions, institutional investors still lack long-term, stable funding sources.

Coupled with issues such as the quality of listed companies and market pricing mechanisms, the stock market has undergone strong “stock speculation” changes, long-term investment, value investment concepts have not yet been formed, and the market has a poor profit-making effect.

And because most institutional investors have assumed fiduciary responsibilities, in the face of this environment, positions have been reduced, and risks have been avoided, leading to a long-term low market share of A-share institutional investors.

  2.

3.

3 Continue to encourage pensions to enter the market and improve the assessment method for institutional investors. (1) Increase the upper limit of the proportion of pension insurance fund investment stocks on a regular basis. Larger-scale capital entry into the market will help stabilize market confidence and help the long-term healthy development of the stock market.
Pensions are an important source of long-term funding, and US pensions have a great deal of success entering the market.

Pensions in the United States are divided into basic social pensions, 401K supplementary pension plans, and commercial insurance and pensions. Of these, 401K accounts for about 50% of the entire pension scale, and the scale reached 8 at the end of 2017.

$ 5 trillion.

The funds in 401K have been invested in the stock market for a long period of time, which has significantly increased the share of US institutional investors in the stock market, provided a long-term stable source of funds for US stock market transactions, and has become a stabilizer of the US stock market.

Currently, 67% of the funds in 401K are invested in the stock market. The main investment methods are stock funds, individual stocks of companies, and stocks in mixed funds.

Even in the 2008 financial crisis, the proportion of stock investment in 401K reached about 56%.Long-term capital investment is an important cornerstone of the sustained and healthy development of the US stock market.

  The pension investment stock markets of various countries are currently facing huge strict constraints. According to the “Administrative Measures for the Investment of Basic Pension Insurance Funds” issued by the State Council in 2015, the proportion of investment stocks, stock funds, mixed funds, and stock-type pension products must not total.30% higher than the net asset value of pension funds.

From the actual situation of pensions entering the market, as of the end of September 2018, 15 provincial (regional, municipal) governments across the country have signed entrusted investment contracts with the Social Security Fund, with a total contract value of $ 715 billion, of which 4166.

500 million funds have been received and investment has begun.

It is recommended to appropriately relax the limit of the net value ratio of pension investment in the stock market, and accelerate the signing of unsigned provinces and social security funds to intervene in entrusted investment contracts. When assessing pension benefits, focus on mid-to-long-term and absolute returns as the focus of evaluation, and for the stock marketDating stable medium-to-long-term funding sources.

  (2) Change the short-term trend of performance evaluation of the fund industry. Public funds are mainly funded by retail investors and rely on sales channels. Based on sales pressure and other factors, the evaluation of the fund industry is polarized, leading to gradual investment behavior.Short-term, the estimated short-term income exceeds the long-term value, and the strategic interests of the fund industry as a cornerstone investor and value investor are brought into full play.

It is suggested that on the basis of full research, the pilot fund industry be transformed from short-term performance ranking to long-term absolute performance assessment, change the short-term behavior trend of the fund industry, and gradually form the concept of long-term investment and value investment to promote the healthy development of the stock market.

  2.

4 Improve the construction of the trading system 2.

4.

1 Further standardize the suspension of trading of listed companies (1) The random suspension of listed companies affects the normal trading of the stock market. The random suspension of listed companies is one of the outstanding issues facing the A-share market.

The original intention of the stock suspension is to prevent major issues planned by listed companies from being resolved in advance, which will have a significant impact and adversely affect small and medium investors.

However, in practice, the suspension of listed companies is too random, the time is too long, the reasons for the suspension are ambiguous, and the problems have been expanded, resulting in lock-in re-issuance prices and avoiding special market conditions.

  Suspension of trading by listed companies at random, the long-term suspension seriously affects the liquidity of the stock, and harms investors’ right to know and trade.

By studying the suspension cases of A shares, we find that most of the reasons for long-term suspension are due to reorganization or major asset reorganization.

The SSE’s “Guidelines for Suspension and Resumption of Listed Companies’ Plan for Suspension of Trading” has required that, except for major asset reorganizations that require prior approval in accordance with laws or regulations, or that there is no major precedent, the time for a listed company to plan a major asset reorganization to be gradually suspended should not exceed 5Months.

But in fact, some listed companies have been suspended for more than five months.

For example, Shagang Co., Ltd. announced that it had suspended trading due to major events on September 19, 2016. On June 15, the following year, Shagang Co., Ltd. disclosed a major asset reorganization plan, but it is still suspended.

In this regard, the Shenzhen Stock Exchange has repeatedly sent letters to pay attention, saying that the related behavior of Shagang shares violated the Shenzhen Stock Exchange’s “Stock Listing Rules (2014 Revision)” on page 17.

According to Article 1, the responsibility caused him to apply for the resumption of stock trading in time, but did not receive any regulatory effect.

  In extreme market conditions, the random suspension of listed companies may also have a significant impact on the entire market’s liquidity and price discovery mechanism.

During the unusual fluctuation of stocks in 2015, many stocks chose to temporarily suspend trading to avoid being sold by investors, and some stocks were suspended for ambiguous reasons.

At its worst, the number of A-share suspensions on more than 1,000 trading days was referred to as a “thousand-share suspension.”

When the market liquidity is extremely scarce, the suspension of 1,000 shares has amplified the panic in the market. Some public offerings have encountered severe redemption pressure. Due to the sale of unsold stocks, these stocks also fell quickly and the market liquidityQuickly frozen, the stock market price discovery mechanism was almost interrupted.

More importantly, the suspension of trading can only temporarily avoid the risk of falling stock prices and cannot change investor expectations. Once the stock resumes trading, it will still face the risk of supplementary losses.

  The overall capital market also has a suspension and resumption system, but the system design is different from the A-share market.

Taking the United States as an example, the suspension of trading of stocks in the U.S. market is divided into two cases. The first is a transaction interruption (trading suspension), which is executed by the exchange. The most common case is when a listed company issues an announcement during trading hours.The transaction will be temporarily interrupted, and the duration is generally 15-30 minutes.

Its main purpose is to ensure the full dissemination of information and prevent arbitrage behaviors caused by different traders acquiring information at different times.

The other is trading suspension (Trading Suspension), which is executed by the SEC and is a regulatory measure.

It is used when the SEC finds or suspects that the company has a major information leakage problem (incomplete information disclosure or false information), insider trading, market manipulation, etc., and the duration is 2-3 weeks.

On the whole, the US market has strict supervision over the suspension and resumption of trading of listed companies, and the time limit for suspension is overall.

  (2) Improving the supervision system to prevent arbitrary suspension of trading In fact, in view of the problem of arbitrary suspension of trading by listed companies, relevant departments have continuously improved the construction of relevant systems.

In 2016, the Shanghai Stock Exchange and the Shenzhen Stock Exchange respectively issued the “Guidelines on Suspension and Resumption of Business of Listed Companies Planning for Suspension and Resumption of Trading” and the “Guidelines for Suspension and Resumption of Business of Listed Companies” respectively, which regulate the scope of trading suspension, the time limit for suspension and the procedures for suspension of trading.

On November 6, 2018, the China Securities Regulatory Commission issued the “Guiding Opinions on Improving the Suspension and Resumption System for Listed Companies’ Shares”, which stipulates that listed companies should take the principle of non-suspension as the exception, suspension as an exception, short-term suspension as the principle, and long-term suspension as an exception, intermittent.Suspension is the principle, continuous suspension is the exception, and the suspension of trading shall not be arbitrarily suspended or delayed for no reason.

The new regulations also regulate the suspension period, information disclosure, and supporting mechanisms to improve the basic system of the capital market, optimize transaction supervision, reduce transaction offsets, and enhance market liquidity.

  Strengthen supervision and focus on implementation.

The relevant mechanisms have been gradually improved, and the key to achieving the expected results lies in implementation.

For long-term suspension of trading without clear reasons, or multiple vague listed companies, the exchange may compulsively resume trading.

For major asset reorganizations or asset reorganizations, the time limit for suspension of trading shall be appropriately extended, and the suspension of trading shall be prolonged at will for general reasons such as the complexity of the transaction and the involvement of many parties.

When the market is significantly abnormal and liquidity collapses, the exchange should deal decisively and suspend the application for suspension of enterprises to ensure the normal operation of market functions.  2.

4.

2 Cancellation of stamp duty on securities transactions and reduction of market transaction cost Stamp duty is an ancient tax established in the Netherlands in the 17th century.

The main purpose of its establishment is that a large number of papers, contracts and other paper vouchers require government endorsement to enhance credibility. In case of disputes, vouchers with “stamps” usually have legal effect, so the government can give a certain percentage in return.

In the era of paper vouchers, the transfer of stock transactions, etc. requires more use of paper stocks “decal endorsed” by the government, so it is reasonable to pay stamp duty.

However, through the advent of the era of electronic and paperless transactions, the taxation basis has changed significantly, and the rationality of levying stamp taxes on stock transactions has continued to decline.

  As an important tax on the A-share market, the stock transaction stamp tax has historically been given the function of regulating market conditions in addition to the basic role of increasing government revenue.

However, judging from the results, the adjustment of the stamp duty rate cannot change the long-term trend of the stock market, but rather exacerbates the short-term fluctuations.

  On January 24, 2005, the stamp duty rate on securities transactions was lowered from 2 ‰ to 1 ‰, and the Shanghai stock index closed up by 1.

73%, but since then continued the downward trend, eventually hitting 998 in June.

23-point historical low.

  On May 30, 2007, the stamp duty rate was raised from 1 ‰ to 3 ‰, and the Shanghai Stock Index opened lower by 5 the next day.

69%, down 6 throughout the day.

5%, will fundamentally change the course of the A-share bull market. The Shanghai Composite Index continued to grow and reached 6124 in October of that year.

04 at the top.

  On April 24, 2008, the stamp duty on securities transactions was lowered from 3 ‰ to 1 ‰. On the same day, the Shanghai Stock Exchange Index hit an upper limit and almost all stocks went up and down. However, the broader market continued to move in a narrow range and the overall trend remained unchanged.

  On September 19, 2008, the stamp duty on securities transactions was levied unilaterally in lieu of supplementary collections, and the Shanghai stock index closed up as much as 9 on the day.

46%, the individual stocks almost reached the daily limit, but in the next two months, the market still fell to 1664.

The low of 93.

  From the international experience, since the 1990s, through the electronicization of stock trading, the United States, Germany, Japan, Australia and other countries have successively cancelled the stamp duty on securities transactions.

Currently, countries that are still collecting stamp duty include China, India, and the United Kingdom, but the United Kingdom adopts preferential policies for stamp duty reduction and exemption on some small and medium board stocks.

  It is suggested to cancel stamp duty on securities transactions in a timely manner according to market conditions.
The highest, from the perspective of fiscal revenue, the fiscal revenue raised through stamp duty accounted for a relatively small amount. In 2018, the national stamp duty on securities transactions totaled $ 97.7 billion, while the general public budget revenue during the same period was $ 18,352.5 billion, and the stamp duty on securities transactions only accounted for zero.

5%.

There is not much pressure on fiscal revenue after the cancellation.

At the same time, the abolition of stamp duty on securities transactions will reduce stock market transaction costs, enhance investor confidence and capital market vitality, and promote healthy development.

  2.

5 Improve the legal system and strengthen investor protection 2.

5,

1Asian law is suspected of underplaying some securities violations. The Securities Law and the Criminal Law are the main laws that regulate the securities market and protect the legitimate rights and interests of investors.

However, the main problem currently facing is that the punishment of some illegal acts is too light.

One of the most controversial is that the Securities Law has an administrative limit of 600,000 for many illegal acts.

Illegal actions in the securities market are often profitable by hundreds of millions, and the default rate prescribed by securities laws is too low to effectively deter illegal actions in the securities market.

  For example, in December 2017, the China Securities Regulatory Commission announced the decision to replace Yabaite. Yabaite gradually increased the number of fictitious overseas engineering projects, fictitious international trade, and domestic trade from 2015 to September 2016.Operating income 5.

800 million yuan, profit 2.

US $ 5.6 billion is one of the most serious financial fraud cases in the history of the securities industry in developing countries.

But even if it was deviated from the top grid, the company could only bear 60 million points, and the responsible person marked only 300,000, which was difficult to form enough vibrations to stop.

At the same time, investors are suspected of being faced with unfavorable filing and difficulty in proving evidence, so there are few cases of civil compensation for securities fraud, and it is difficult to effectively protect legal rights and interests.

  In terms of criminal responsibility, Article 181 of the Criminal Law of the People’s Republic of China provides for insider trading, and the maximum sentence for changing inside information is 10 years.

In practice, Ma Le, the largest rat warehouse in developing countries, involved up to 10 cases.
50,000 yuan, illegal profits of nearly 20 million yuan, and ultimately sentenced to three years in prison.
The Xu Xiang case law enforcement nationals, from 2010 to 2015, successively conspired with the chairman or actual controller of 13 listed companies to manipulate the stock transactions of listed companies, control 139 securities accounts, and illegally make profits93.

3.8 billion, sentenced to five and six months in prison.

  In some cases, developed capital markets have severe penalties for illegal cases in securities markets.

Take the United States as an example. In 2001, Enron’s inflated profit of $ 600 million was exposed, and financial fraud caused a worldwide sensation. A representative of the US Securities and Exchange Commission pointed out that $ 500 million led to the company’s bankruptcy and liquidation.

Relevant intermediaries such as Andersen, Citi, JP Morgan Chase, etc. were held accountable.

Among them, Andersen, the auditing agency, was investigated by the US Department of Justice because it was suspected of colluding with Enron and concealing criminal evidence.

In the end, Arthur Andersen was established with a reputation for justice and justice, was fined $ 500,000, and was unable to engage in business for five years.

Since then, most customers have terminated their business dealings with Arthur Andersen, and Arthur Andersen was forced to close its offices around the world and went bankrupt in 2002.

  From the perspective of criminal liability, US law is extremely severe in cases of securities violations.

Take the crime of insider trading as an example. The Sarbanes-Oxley Act of 2002 provides that anyone who gains interest in the securities market through insider trading or price manipulation constitutes a crime of securities fraud and can be imprisoned for up to 25 years or be fined 5 million.

At the same time, the recognition of insiders in the United States is very extensive: directors, supervisors, executives and their partners, trustees of the company; shareholders who own more than 10% of their shares, and their partners, trustees; company employees and spouses of the above,Immediate blood relatives and family trustees; presumed insiders include anyone outside the company who knows inside information through the above positions; information aligners and substitute insiders, etc.

In 2011, Sailing Fund Rajaratnam was charged with insider trading, involving a value of more than $ 30 million, and sentenced to 11 years in prison.

Dozens of corporate executives, including Intel’s strategic investment director, director of McKinsey Consulting, and senior vice president of IBM, were also involved in the case.

Twenty-one people have been arrested and pleaded guilty.

  In fact, in addition to under-infringement of some illegal acts, existing securities laws also have excessively strict controls on securities issuance, the role of the capital market in serving the real economy has been effectively exerted, and the lack of necessary institutional arrangements for cross-border securities issuance and trading activities.The market constraint mechanism is not perfect, investors are not well protected, and the quality of information disclosure is not high.

Therefore, it has become a consensus from all walks of life to amend the Securities Law, establish a sound market mechanism, increase supervision, and strengthen the deterrence of illegal and criminal acts.

This round of amendments to the Securities Law was launched in 2013, but due to the wide range of issues, investigation issues need to be resolved, and the rapid changes in the market environment are still in the process of occurring.

  We propose to speed up the amendment of the Securities Law, significantly reduce the control of securities issuance and other areas, and at the same time strengthen law enforcement, increase penalties for securities violations and crimes, strengthen regulatory deterrence, and enhance the level of in-event and post-event supervision.

In terms of criminal responsibility, for the serious crimes of securities, the sentencing standards should be appropriately raised, the behavior of disrupting the market order, manipulating prices, and fraudulent acts should be continuously improved to continuously improve the legal environment of the securities market.

Zhejiang Dingli (603338): Single-quarter revenue hits record high and investment project construction goes smoothly

Zhejiang Dingli (603338): Single-quarter revenue hits record high and investment project construction goes smoothly

The single-quarter revenue hit a record high, and the gross profit margin remained stable. The company disclosed its third quarter report for the year of 19, and achieved operating income for the first three quarters of 14.

45 ppm, a ten-year increase of 9.

02%, realizing net profit attributable to mother 4.

44 ppm, an increase of 12 in ten years.

02%, of which the third quarter revenue was 5.

97 ppm, an increase of 10 in ten years.

41% of the company’s historical single-quarter revenue and the highest net profit in a single quarter1.

$ 8.3 billion fell 3.

87%, gradually digesting the North American market segmentation brought by the impact of trade.

The company achieved a gross profit margin of 40 in the first three quarters.

85%, slightly higher than the same period last year.

Net operating cash inflows during the reporting period 3.

29 trillion, the third quarter payment accelerated.

It is proposed to increase the capital of the financial lease leasing subsidiary to help the domestic main business sales increase company’s ending accounts receivable.

6.8 billion, an estimated 7% decline in the middle of the year, while bills receivable also declined significantly.

It was mainly caused by the company’s business development through its financial leasing subsidiary, which reduced bill settlement payments and improved long-term receivables at the end of the period.

The company announced that it intends to increase the capital of Dingce to 300 million US dollars. Dingce will provide customers with purchasing capital solutions to promote the main business sales while realizing the control of repayment risk.

The construction of fundraising projects went smoothly, creating the industry’s high-quality benchmarking projects under construction at the end of the period.

6 ppm, an increase of 64% at the beginning of the benchmark period, mainly due to the increase in investment and capacity construction expenditures.

According to the 杭州桑拿 company’s semi-annual report, the fundraising project “Large Intelligent Aerial Work Platform Construction Project” has completed the construction of the main plant, and is currently in the final stage of construction, equipment procurement and installation.

After the completion of the project, the manufacturing process of the company’s high-end intelligent aerial work platform will be greatly improved, and the industry will create high-quality products.

  Profit forecast and investment advice: We forecast the company’s EPS to be 1 in 19-21.

71/2.

22/2.

81 yuan / share, the current sustainable corresponding PE is 37/28/22 times.

We maintain the company’s 19-year reasonable PE assessment 37 times, corresponding to a reasonable value of 63.

25 yuan / share, maintain “Buy” rating.

  Risk reminders: the risk of fluctuating demand in the downstream market; the environmental risk of international trade; the risk of fluctuating raw material prices; the risk of increased market competition.

Qixin Group (002301) Tracking Express: Cloud Video Business Has Broad Prospects, B2B Business Is Stable Overall

Qixin Group (002301) Tracking Express: Cloud Video Business Has Broad Prospects, B2B Business Is Stable Overall
The overall impact of the epidemic on concerted efforts: 1) Related products: The epidemic has caused an increase in demand for labor insurance products, such as disinfection water, which offset the impact on other office supplies; 2) Working hours: Guangdong will work on February 10th, but it is currently basically availableWork from home; 3) Operation model: build high-quality dealers as service providers, and make the service process online; open the supply chain to suppliers to connect to the outlets to replace online, and solve logistics and supply problems.The current advanced online B2B one-stop office service platform is very suitable for current needs; 4) Logistics: Most of the products are general materials, too much social inventory, and the traditional operation model is greatly affected by the epidemic situation.However, the company has transcended the traditional model, transforming service provider logistics into company logistics, preparing goods through multiple channels, and reducing the impact of the epidemic. Customers can buy locally, and service providers are within 1 kilometer of customers. Infringement of traditional business and future development: Business is operating normally during the Spring Festival. With the cooperation of SF Express, the epidemic caused an increase in demand for labor insurance products, such as disinfection water, replacing the impact on other office supplies.The first is that the company is online. The unified lightweight operation model has been recognized by customers. This model provides platform solutions, that is, online transactions and coordinated service processes.The service process consists of two sub-systems: procurement and warehousing. It connects users through a data-based operation platform, transforms high-quality distributors into service providers, and automatically sorts information to correspond to service providers. At the same time, it opens the supply chain to service providers.The procurement part is sent from the supply chain to the warehouse of the ground service provider, and the ground service provider collects directly locally. Qixin Haoshitong business ushered in development under the epidemic situation: Qixin Haoshitong focuses on cloud video services, and cloud video conferencing has the first market share for three consecutive years; in addition to the basic business line of cloud video conference, Qixin Haoshitong layout is targeted at governmentAnd product lines of various industries, including smart party building, smart education, smart medical care, remote letter visits, remote evaluation, etc.During the Spring Festival: During the Spring Festival epidemic, more users learned about remote office products. From the beginning of the New Year, the company actively responded to the national call to open a cloud video conference for 500 people online for free.A certain percentage is converted into the company’s research customers.1) Wide range of use: The use of cloud video services in customer meeting scenarios will access corporate business processes across borders in the future, and the application scenarios of cloud video collaboration will be broader; 2) Mobile trends, affected by the epidemic, mobile in recent daysThe trend of application is particularly obvious. 3) Date artificial intelligence improves efficiency: date face recognition, voice translation, automatic update and positioning of sound sources, etc. to improve office efficiency and improve user experience; 4) Cloud + end integration: traditional hardware equipment is expensive to manufacture and users are more expensive.It is hoped that it is a one-stop overall solution, and the cloud + end model can better meet market demand.5) Localization trend: Since the Sino-U.S. Trade war, security and controllability have become a national requirement. It is expected that the party, government, and military will implement a comprehensive incremental replacement in the next three years. The company’s stationery business performance was limited by the epidemic situation, and the cloud video business volume was clear: the overall impact in the first quarter was not significant.The preliminary is: 1) the expected proportion of the first quarter is 10-15%, and the B2B business is also basically 10-15%; 2) bidding: in the first quarter, there was only one bidding order for a small military project, and there were many biddings due to the Spring Festival.In February-March, too much follow-up bidding business will repeat the absence of vacations.It is expected that performance will maintain normal growth.Maintain the net profit forecast for 19-21 to 2.75/3.74/5.12 trillion, corresponding to the current market value of PE is 46/33/24 times.As the company’s 杭州夜网 major customer development and integration services layout is gradually entering the harvest period, the company’s net profit is expected to increase by 43%, 36%, and 37% in the next three years. Taking into account the broad prospects of the Goodview business, the target price is increased by 20.4 yuan, giving the company 40 times the 2020 target PE, and maintain the “strong push” rating. Risk factors: The macro-downturn consumption is sluggish, and the stationery industry pattern has undergone major changes.

Eight major blood pressure principles

Eight major blood pressure principles

Hypertension is a common complication that leads to insufficient awareness of the “silent killer” of hypertension.

Most people think that asymptomatic means that blood pressure is not high and there is no danger.

In fact, high blood pressure can cause cerebrovascular accidents, renal insufficiency, uremia, hypertensive heart disease and coronary heart disease.

  What God Food says is that high blood pressure can be prevented, and the key is to maintain a healthy lifestyle.

Specifically, for the risk factors that are susceptible to hypertension, to prevent it, or to try to control it, the onset of hypertension can be delayed, or it can be prevented, then the following 8 alternative principles must be followed:

Food is diverse, with cereals as the mainstay.

  2.

Eat more vegetables, fruits, and potatoes.

  3.

Eat more beans and dairy foods.

  4.

Eat fish, poultry, eggs, lean meat in moderation, eat less fat, and less animal offal.

  5,

Ensure a diet that is compatible with physical activity and maintain a suitable weight.

  6.

Eat lightly with less salt precipitation.

7.

Drinking alcohol is not recommended, but should be consumed in small amounts.

  8.

Eat clean, fresh food.

Interpretation: a certain disease is suitable to see Chinese medicine

Interpretation: a certain disease is suitable to see Chinese medicine

I often encounter problems with patients, “I have . I am sick. Is it better to see Western medicine or Chinese medicine?”

“Traditional Chinese medicine answers many patients’ doubts.

  1.

After recovering from a serious illness or a weak constitution, and patients with a weak constitution, fatigue, anorexia, insomnia, indigestion, night sweats and other symptoms often occur. At this time, it is better to use traditional Chinese medicine to see the effect of TCM, as the overall adjustment of the traditional Chinese medicine can make the weaker after illnessQuickly restore physiological balance.

  2.

Gynecological diseases Women’s dysmenorrhea, menstrual disorders, functional bleeding, infertility, menopausal syndrome, gestational and postpartum conditions, such as severe pregnancy reactions, postpartum lactation-free, returning milk, etc. should be seen in Chinese medicine.

Because Chinese medicine is used to treat gynecological diseases with caution, it can avoid the harmful harm to pregnant women and babies caused by bad medicine replacement.

  3.

Children’s diseases Children, especially young children, are not only unable to express their condition, it is often difficult for parents to accurately state their illness.

Traditional Chinese medicine pediatrics adopts the traditional diagnosis and treatment methods of sight, smell, question, and cut, plus modern laboratory tests. Through comprehensive analysis, the disease can be accurately diagnosed and medicine can be replaced.

  4.

Difficult and complicated diseases Tumor surgery, chemotherapy and patients with advanced cancer, traditional Chinese medicine treatment can help restore or extend survival and improve quality of life.

Impotence, nocturnal emission, oligospermia, dead sperm, female infertility, coldness, nervousness, facial paralysis, paralysis, hair loss, psoriasis, vitiligo and other difficult diseases, if you look at Chinese medicine, you may receive unexpected results.

  5,

Difficult diagnosis Many people are consciously sick, but when there is no organic disease after examination and diagnosis, it is advisable to see Chinese medicine.

If you have qi deficiency, night sweats, tinnitus, limb numbness, cold limbs, bloating, constipation, diarrhea, frequent urination, thirst, heartache, irritability, depression, depression, fatigue, dizziness, insomnia, forgetfulness and other symptomsSuitable for Chinese medicine.

Too much and too little sleep can cause brain aging

Too much and too little sleep can cause brain aging

Today, I will share the relationship between sleep time and health.

  According to the British “Daily Mail” report, another new study in “Sleep” magazine warns that normal sleep time should be 6-8 hours per night, too much or too little sleep will lead to future brain aging 4-7 years laterCognitive abilities accelerate the decline and affect abilities such as reasoning and vocabulary.

Deteriorating brain function can eventually lead to physical decline and premature death.

  Scientists at the University of London conducted a five-year study of 5,431 participants in response to the question of “the effect of sleep disturbances after middle age on cognitive function in the future”.

Those who slept 7 hours a night had the best performance in the expected cognitive test, followed by those who slept 6 hours a night.

Among male participants, 6 hours of sleep, 7 hours, and 8 hours of sleep have basically the same effect on cognitive ability, but if they sleep 6 hours or more of 8 hours per night, they will potentially affect cognitive ability.influences.

  Scientists say that about seven hours of sleep is extremely important for human function and health.

Insufficient sleep can affect work and life performance, slow response, and error-prone.

In addition, sleep duration is also closely related to quality of life, certain social abilities, physical and mental health, etc.

Senior judge Jane Fillet, head of the new study, said that poor cognitive ability after middle age is directly related to sleep duration.

Too much or too little sleep and poor sleep quality are causing more and more health hazards, which are getting more and more attention.

  Through the above sharing, I hope to bring reference value to everyone’s health.

8000 calorie muscle gain plan

8000 calorie muscle gain plan

I bet you never thought that the answer to exceeding and gaining weight quickly would be eating too much food, but it is exactly the diet strategy proposed by Mr. Bodybuilding.

If you overeating once a week and exercise hard, you can increase 5 in two months?
10 pounds of muscle and will not gain weight.

  By now, you may understand that this diet plan is one of the most effective ways to restore and grow muscle.

Surprisingly, to the best of this plan, you can get better results.

When you overeating once a week, inject an amount of calories that you usually inject, and your body cannot sense that these calories should be stored temporarily.

When your body suddenly receives a rare, large number of calories, it produces a lot of conversions.

This provides a metabolic environment for the body and prevents unfortunate accumulation.

Plus, this gives you the extra calories you need to gain muscle.

  This diet plan is very simple.

During the first five weeks, one day each week should be supplemented with the normal normal injection of calories in series.

As your body gradually adapts, increase the frequency of overeating, every five days.

This is how your body gets extra energy, which can make you gain several pounds of pure muscle in just two months.

  Meeting your needs First, you need to know the amount of calories you need to keep your muscles alive: A person who weighs 99 kg generally needs 4000 calories to maintain his weight and muscle.

You can make a diet diary (last 4?
5 days, get the exact value of your average daily calorie intake) or try your best to estimate.

If you keep a diet journal, keep a record of all the foods and quantities you eat, and use a food conversion chart to calculate the number of calories you eat each day.

Then, double your daily intake to determine how much food you need to overeat.

In our example, the 99 kg bodybuilder needed to transplant 8,000 calories on his gluttony day.

  Taking twice as many calories once a week allows you to gain muscle without gaining weight.

  Super Food Day Choose one day each week to start overeating.

Whether you choose a workday or a weekend, make sure to pick a day where you have enough time, because it takes time to prepare and eat more food.

If you are still worried about increasing your aunt, then implement this plan on training day.

During the first five weeks of this diet plan, you will eat a pair of usual foods on your eating day.

At first you will feel very painful on the feeding day, as if you would spit out all the food it eats, but your body will adapt quickly.

By the third day of gluttony, your body should have adapted, and you will not feel so uncomfortable.

  This is why you need to increase your binge frequency in the second month.

After one month, due to your body’s fitness, you need to overeating more often than once a week to ensure continued muscle growth.

Therefore, you will start eating every five days, but on other days you will need to continue to implant the amount of food you need to maintain your weight.

In this example of a 99kg bodybuilder, he wants to make sure to add 4,000 calories a day. Eating too much will make your aunt hoard, and eating too little will affect the effect of the diet plan, and even makeYou suffer from insufficient calorie intake and cause you to lose weight.

Pay special attention to this in the days after your overeating, because then you may lose your appetite.

  Here’s an example of a one-day gluttony plan. You can replace these with similar foods; changing different foods every day is better than eating the same foods every day.

Adjust your consumption according to the actual situation, so as to achieve the requirements of daily meals in both directions.

  7 am Breakfast: five eggs, a bowl of oatmeal, turkey bacon, a slice of fruit 10 am Morning snack: weight gain shake (high protein, high carbohydrate) 12 noon Lunch: roast chicken, with olive oilMade pasta, vegetables 2 pm Afternoon snacks: Whole wheat bread sandwiches, half avocado, a handful of nuts 4 pm Before workouts: simple linen and whey protein shakes After 6 pm workouts: simpleGlucose and whey protein shakes 7 pm Dinner: large steaks, a small baked potato, vegetables 10 pm supper: peanut butter, protein shakes or boiled eggs or meat, a large bowl of oatmealThe following strategies for muscle growth training methods will directly affect the training effect.

When you try to get the most effective growth, many people make a common mistake-blindly increasing the amount and intensity of training.

It is correct that you should focus on the movements that bear weight, reduce the number of repetitions and groups, and increase the rest time between each group of movements.

Follow these tips to get the most out of your workout: # Focus on heavy weight compound moves.

Such as deadlifts, bench presses, barbell shoulder presses, squats and pull-ups.
These are the most effective ways to stimulate muscle growth.

  # Practice no more than four times a week.
Training every day burns too many calories and affects the effectiveness of your eating plan.

Train four times a week and try to complete all exercises in 60 minutes or more.

  # Focus on repeating 6?
8 weight training sessions.

This range is most suitable for stimulating muscle growth.

Avoid high-repetition exercises, except for warm-up exercises.

  #Avoid single joints and isolated movements.

Single joint and isolated exercises are meant to portray muscle lines, not to build muscle.

Give up this type of exercise in a two-month plan, of course, unless you are doing arm exercises.

  # Practice with free weights, giving up ropes and fixed equipment.

In general, rope and fixed-arm exercises are movements that portray details; most of them are not suitable for muscle growth.

Exclude them from the training program.

  # Keep the heartbeat frequency moderate.

Do not do more than 30 minutes of aerobic training every week, and do it calmly.

This will still cause your heart to be good, but you don’t want to burn too many calories so as not to affect the effectiveness of your diet plan.

  If you do not gain weight while your muscles are growing, you can increase the frequency of overeating days to every four days.

  Diet Tips It is difficult to eat so much food.

When you want to eat more food, stuffing a lot of chicken and rice may be more difficult than expected.

Use the suggestions below to reach your goals.

  #Drink the food.

Drinking a protein shake and milk is an easy way to get a lot of calories quickly.

They are also a great way to increase your daily calorie intake.

Generally speaking, when you are too full to eat any more, you can still drink 8?
16 milk.

They are the highest calories and can provide you with calories that meet your daily intake standards.

  # More meals a day.

A smaller intake at each meal allows your body to absorb more calories.

The more calories you sit and eat, the more they turn into unfortunate possibilities.

So, try to get 1000 calories per conversion you eat and eat six meals a day.

In our diet plan you need to eat eight meals a day, including inside the shake.

  # Maintain your calorie intake.

One mistake that can easily be made in implementing this gluttony plan is to unconsciously reduce your calorie intake on non-gluttony days.

On the second day after “feeding day”, you will most likely not feel the heat.

At this point you still need to add all the calories you need to maintain your weight.

If you reduce your calorie intake on non-bulimia days, the calories you absorb at the end of this program are only equivalent to the most basic needs to maintain weight.

This way, your muscles will not grow any more.

  Calorie intake is the most critical element of this meal plan, and the type and timing of calorie replacement is also important.

Follow the suggestions below when implementing a feeding day plan.
  Protein: You can eat as much protein as you want, but at least the daily intake must exceed the basic amount, that is, one pound of protein is important for each pound of body weight based on your weight.

If you exceed this amount, it will not help your muscles grow quickly, but it is not harmful.

  Composite fibers: Absorbing a large number of specific composite fibers is one of the best methods for muscle growth.

You can absorb up to 1000 grams of complex glucose on your eating day.
  Simple glucose: sugar is not always contraindicated.

After exercising, is there anything else that can better help you gain muscle while absorbing 50?
100 grams of simple sugar.

  Healthy adults: Omega-3 fatty acids can create the right hormonal environment for your muscle growth.

You want to make sure you get the full amount you need daily: a healthy aunt of at least 50 grams per day.

Some good sources are certain avocados, salmon, nuts and seeds, pure natural peanut butter, olive oil and canola oil.

  Other aunts: Your muscles are growing, so you don’t have to reject other forms of aunts.

You can absorb some saturated fats, certain meat products and egg yolks, these can provide hormone hormones that help muscle growth, and are rich in calories.

You just need to avoid your aunt in grilled and fried food (in other words, avoid junk food).

The consequences of these misfortunes outweigh the positives.