Article/Jia Kang of China Economic 50 People Forum
Experience shows that simply applying the experience of capital market development of other economies can not completely solve the problems encountered in the construction of China's capital market. We must fully learn from all civilized achievements and pursue extraordinary development. This needs to be surprising after being upright, and to pursue surprise to win.
Jia Kang: China's capital market needs to be right At present, China is vigorously promoting the construction of a multi-level capital market. A basic orientation is to play the role of the capital market in resource allocation. In order to achieve standardized and sustainable development, the capital market should have at least the following three elements.
First, legalization. The healthy development of the capital market needs a legal environment as a guarantee. The practical problems to be solved by the rule of law are mainly some puzzling phenomena that people feel when the stock market fluctuates violently. For example, there is a saying of "malicious short" in the stock market, which also implies another "goodwill short"; Besides, is it always good intention to do more? Long and short are the two complementary and interdependent operating directions of the stock market operation. How to distinguish good from evil in each operation? Although moral evaluation can be made, the real solution to the problem of the healthy operation of the stock market cannot rest on moral judgment. There must be a rule of law system construction, so that relevant behaviors, whether evaluated as good or evil, are locked in the cage of reasonable and legal rules, which is the fundamental plan. Only when the bottom line to be observed is drawn can the market flexibility space be given and the space for supervision and law enforcement be given.
The second is sunshine. At the same time of legalization, we must match the sunshine. How to fully disclose information in a regular way should be done in the sunshine, especially to curb and crack down on insider trading. The most basic feature of the mechanism of protecting investors in the stock market is that the information that should be processed in a sunny way should be fully sunny, and the information that leads to insider trading should not be allowed to ferment in the dark and play an inappropriate or even destructive role. Sunshine requires very clear boundaries. In the process of information dissemination, when and within what time and scope should be made public, it should be made public fairly, and a few people should not get relevant information first. This understanding is actually a continuation of the rule of law. In order to build a stronger credibility of the stock market, and then move towards maturity, we must overcome difficulties and make this kind of sunshine as high as possible.
Third, specialization. China's capital market must pursue specialization. In the course of years of development, we must recognize the important role of institutional investors in the capital market. In a sense, the stock market is not suitable for many retail investors who think they can invest in it. Many retail investors are indeed not suitable for direct operation in the stock market, which is true. However, it is unreasonable to say that retail investors should be restricted if they are willing to enter the stock market. If he is willing to take any kind of risk in the stock market according to his own preference, he will be responsible for his own profits and losses. However, from the perspective of the long-term sustainability of the stock market in the modern economy, we should actively cultivate qualified and high-level institutional investors to guide and act as agents for retail investors and provide them with higher level services.
Experience shows that simply applying the experience of capital market development of other economies can not completely solve the problems encountered in the construction of China's capital market. We must fully learn from all civilized achievements and pursue extraordinary development. This needs to be surprising after being upright, and to pursue surprise to win. In the process of building China's capital market, there have been some obvious innovations that are being tested in the aspect of surprise. For example, while emphasizing the role of venture capital, venture capital and angel investment, China also takes into account the role of government sector industry guidance funds. This kind of industry guidance fund is just the "surprise" after dealing with "integrity". How can the surprise win? This requires the highest possible level of customization.
In this regard, some local governments, in their exploration of the industry guidance fund, pay special attention to the expansion of the entire fund size by several times of the funds funded by the government and backed by finance. The master fund will bring out a series of sub funds, and then a professional sub fund team will decide what specific projects to invest the funds in independently according to the government's policy guidance. Moreover, when making investment, these professional teams must also use their own funds to follow the investment, bind their risks with the risks of the project, and form this incentive and constraint mechanism as good as possible, which is undoubtedly a positive exploration.
(The author of this article introduces: member of the National Committee of the Chinese People's Political Consultative Conference and researcher of the Chinese Academy of Financial Sciences.)
