China'S Future Development Depends Largely On The Stock Market.

Premier Li Keqiang chaired the executive meeting of the State Council and sent a strong signal to the stock market.

First let's take a look at the Xinhua News Agency's draft on "actively developing direct financing".

In order to facilitate reading, I gave the original paragraph:

The meeting confirmed that one is to improve the multi-level capital market such as stocks and bonds.

We should establish a new strategic board for Shanghai stock exchange to support innovation and venture capital financing.

We should improve relevant laws and regulations to promote the listing of special equity structured venture enterprises in China.

We need to increase the number of listed company in China's small and medium enterprises share pfer system.

Standardize the development of regional equity market.

The meeting held that increasing the financial system reform, optimizing the financial structure and actively developing direct financing will help broaden the channels of investment and financing, reduce the cost of social financing and leverage, push forward the reform of the supply side structure, support public entrepreneurship, innovate millions of people, and promote the smooth operation of the economy.

The two is to enrich direct financing tools.

We should actively develop bond products such as income bonds, convertible bonds and sustainable bills to promote infrastructure assets.

Pilot, standardize the development of Internet lending.

Simplifying the approval of overseas financing for domestic enterprises.

Three, we should strengthen the supervision of credit rating agencies and intermediaries such as accounting and law firms, study cross licensing of securities, funds and futures institutions, and steadily push forward eligible financial institutions to apply for securities business licenses on the basis of risk isolation.

The four is to promote balanced development of investment and financing.

We should gradually expand the investment of insurance protection funds in the capital market, standardize the investment and financing functions such as developing trust and bank financing, and develop private investment funds such as venture capital and angel investment.

Five, we should strengthen supervision and risk prevention, strengthen relevant system construction, and resolutely crack down on financial fraud, illegal fund-raising and other acts in accordance with the law, and effectively protect the legitimate rights and interests of investors.

What does this mean? It means that with the start of the IPO registration system reform, China will usher in the era of "printing stocks".

And the era of "banknote printing" represented by "super currency + real estate + urbanization" has basically come to an end.

There are several important points that deserve our high attention:

1, the stock market has been placed in an unprecedented position.

The following paragraph is worthy of great attention: "actively developing direct financing is conducive to broadening investment and financing channels, reducing social financing costs and leverage ratio, promoting the reform of supply side structure, supporting public entrepreneurship, innovation and promoting stable operation of the economy".

In other words, the new government's internal strategy (external strategy is "one belt and one road") basically depends on the stock market.

Against this background, the government's control over the stock market is bound to be further strengthened, and the pace of issuing new shares will also accelerate.

But the two trends are deviated, and the final equilibrium will be broken. Ultimately, market forces will determine the direction of the stock market.

It is estimated that the market valuation will be greatly reduced after two years.

But in the next six months, the market is still highly controlled.

2, the Shanghai Stock Exchange's "strategic emerging board" will soon be born.

There are indications that the IPO registration system will probably fall before and after March next year.

"Strategic emerging board" is also likely to be listed at that time.

In this way, the "strategic emerging board", the gem and the new three board "innovation layer" will launch the competition for listed resources.

The final result is to stabilize the current high price of gem.

3, to promote the listing of special equity structured venture enterprises in China.

Current

Under the same requirement, the same rights should be shared.

Alibaba, a company with the same rights and different rights, can hardly be listed in China, and finally can only travel to the United States.

Wang Shi's real control over Vanke is also related to the requirements of the same shares.

After this problem is solved, the innovative enterprise will get a "great liberation" at the institutional level.

4, the P2P industry norms or will be launched

The phrase "regulating the development of Internet lending" in the draft is worthy of great attention, especially in the recent P2P companies.

It is estimated that a series of normative measures will be issued soon.

5. Study the cross licensing of securities, funds and futures institutions.

This is good for brokerages, funds and Futures Company, and the stock market is going against the trend today.

6. Expand investment in insurance capital in capital market.

It is estimated that Wang Shi will cry when he sees this sentence, which means that the sweeping behavior of "Bao can" and "Ampang" in the stock market is encouraged in the general direction.

In this way, the integration of the insurance funds to the resources of the listed companies will continue to be in full swing.

This will play a positive role in activating the stock market.

In short, the Executive Council of the State Council has sounded the clarion call for the development of capital market, and there will be a series of new initiatives in the future.