Zhang bridge the best solution to save the stock market

 Zhang bridge: the best solution to save the stock market
Stock
 relaxed, open QFII, more stock prices, while ignoring the business enterprise, then it is a palliative. So, our business is most in need of government and stakeholders on what it is? I think is relaxed. in the Our company was forced to breathe, a lot of time spent in dealing with various government departments at all levels, exhausted, really used to doing business and make money too little time. a lot of good business because the compression outside competition? their share prices continued to improve, how can it?
Right now, the global economic situation is not good: the prices of energy and raw materials rose; the U.S. subprime mortgage crisis is not over; no matter how the RMB exchange rate, foreign demand for Chinese exports on the decline, highlights China's own problems mm in the Chinese people have little long-term plan, then it should move their eyes from the stock underlying corporate governance. shares just a mirror. Do not blame the mirror image does not look good, to help companies loosely tied to their business from the bad rescue environment. the only way to help them reduce cost, innovative products, the establishment of core competitiveness. Only in this way can have long-term health of the stock price.
you think about this question: In the past 20 years or 30 years If Albania, Vietnam and North Korea have the stock market, then their stock will outperform the stock market in Europe and America? Of course not. The reason is simple: there is no economic freedom, there is no business prosperity, there is no stock market boom.
profit-oriented people to pin their hopes on stamp duty on stock market down and the government bailout the above, this is ridiculous. Government stamp duty to zero, reverse stock trading subsidies, will stimulate the stock market? Maybe so, but this effect only can be short-lived. playing the dose of morphine to be more and more, have continued to stimulate the effect. the government to directly buy shares, then the money come from? of course, only more taxes and print more money. But we all know, this will only add to inflation and economic contraction.
Second, open QFII.
An open or basic open market, but only we are afraid to The next question is: more than one hundred large and small countries around the world have the free flow of foreign exchange, in the end China afraid of? from my 20 years working in the People's Bank of China up to now, I have heard choose an open, progressive foreigners come to China to buy A shares, of course, is to make money, what to fear? Are we to allow foreign investment in China are losing money do?
It is said that foreign intervention in China's stock market easily lead to crisis. However, from 2001 to 2005, the Shanghai Composite Index fell 1,000 points from 2,500 points the following, is this a crisis? This can be no foreign involvement. currently the Chinese stock market crash, more than any country in the world stock market crash is more serious, the Shanghai index fell 2,700 points from more than 6200 points. However, QFII A-share market share is small, even though every day, advocating the .
then, full liberalization of the stock market any good? market participants can bring a new way of thinking of the decentralization and diversification, to reduce the probability of the stock market up and down the one-sided, stable and good for the market. From the long term, more open markets, the higher the valuation. such as the United States, although the sub-prime from the United States, the U.S. dollar exchange rate also suffering the first great crisis, but the U.S. stock market in the last year the stock market than in Asia ( including China) should be much more stable. We can think of, why is this?
Finally, our government and investors to do more to Chinese companies will share profits fell sharply. because the high base last year, and now the global economy in decline, the stock market down is inevitable. At present, interest rates in China are too high, credit tight, but also tremendous pressure on the stock market. < br> and the foreign exchange market!
The author is chief operating officer of Shenzhen Investment Limited. This article only represents the personal view of