To create a functional Chinese capital market with internationalization

Guotai Securities chief economist Li Thunderbolt ten years, in the history of capital markets is not long, but for China's capital market, but the entire history of more than half.　　If you pay attention to this young and emerging capital market every day, always complain about the slow pace of development, institutional innovation, product innovation is too slow, but looking back 10 years, but surprised to find that the development of capital market has stepped into a new stage. ⊙ Guotai Securities chief economist Li Thunderbolt ten years ago, "5 19" market, although it coincides with the rise of the network economy, the change is the Chinese securities market investor structure. Over the past decade, mutual funds have gradually become mainstream investors in the market, with net worth of more than 3 trillion in 2007 and should now be more than 2 trillion. In the past ten years, China's securities market system and the diversification of trade varieties have also made great strides, especially through the 2006-year split share reform, the basic solution to the long-term problems of China's stock market, the total circulation, so that the level of stock prices closer to the full circulation of the real valuation level. From the global stock market value comparison, as at the end of March, the total market value of Shanghai and Shenzhen stock market is 16.1 trillion, has become the world's third largest stock market, and China's GDP level ranked the world's third match; SSE's market capitalisation is ranked fourth after New York's Nasdaq-Tokyo market. And China's Commodity futures trading volume has accounted for 1/3 of global Commodity Futures trading. Looking to the future, the gem of the market to taste financing and margin business and financial futures and other innovative products and services are expected to launch.　　Therefore, both in the past and in the future, China's capital market is full of vitality. Promoting the sound function of China's capital market with international standards a mature capital market should have multiple functions and play an important role in promoting economic development. For example, the proportion of direct financing in developed countries generally accounts for the total amount of financing, China's 50-80% in the past 10 years, the proportion of direct financing only maintained at 10-15% level, "big Bank small Securities" pattern is not because the stock market size has ranked third in the world change. In the long run, the excessive proportion of indirect financing will lead to the rise of non-performing assets and threaten financial security.　　In addition, China's capital market is not developed, the financial derivatives market is a single, investors can not through a variety of trading tools to carry out arbitrage and lock the risk of the return of many problems. So the immediate question is: how to increase the proportion of direct financing from the international standard? How can the function of capital market be put into play?　　Suggestions may be promoted from the following aspects. First, vigorously develop the bond market, drawing on the developed Countries ' bond issuance model, relaxing the requirement of issuing debt, letting different credit rating bonds be issued at the market interest level, allowing the bank funds to enter the enterprise bond market often second, to develop the gem and all kinds of OTC markets, through various flexible ways to meet the multi-level financing needs. In the financial support system of small and medium-sized enterprises, the capital market canCapital, industrial funds, bank credit, credit guarantee, science and technology insurance and other cooperation, the formation of benign interaction.　　Third, to play the resource allocation function of capital market, the state-owned shares should be encouraged to withdraw from the competitive field, so as to enhance the Government's ability to transfer payment and realize full circulation in real sense; encourage mergers and acquisitions between listed companies and listed companies and unlisted companies in order to play the role of the capital market in promoting industrial restructuring. Four, vigorously develop the financial derivative market, enrich the trading varieties and trading methods.　　such as asset securitization, stock index futures, t+0 transactions, margin trading and so on should be introduced in time, so that the market has arbitrage, decentralization and transfer risk and many other functions. Using the mechanism of mature market to make the function of capital market play its role in China's capital market in the past decade, although the rapid development, however, there is not much reform and innovation in the regulatory system, which is basically highly regulated market, for example, whether it is equity financing or debt financing, the regulatory authorities need to approve the heavy. Compared with overseas markets, our listing conditions are almost the most demanding. In addition, in the public distribution of various types of financial products, procedures are also very complex. In addition to the normal audit and evaluation of financing projects or financial products ' compliance and risk factors, the regulatory authorities also seem to assume the responsibility of controlling the distribution rhythm and regulating the fluctuation of the market. For example, when the market is depressed, often suspend the issue of new shares, when the market is hot, then speed up the issue of new shares, the price is also rising, even if the high price, public investors due to the limited purchase funds, it is difficult to get the issue of new shares, This leads to the peculiar phenomenon that Chinese investors, especially the public investors, have been on the high side of the stock cost. In PetroChina, for example, when the IPO was prepared more than 10 years ago, regulators worried that the a-share market could not bear the brunt of such a mega-market share, so it was issued in the H-shares market at HK $1.2. But when the A-share rose to more than 6,000 points, but the price of 16.7 yuan in the Shanghai stock, and the first day of the opening of the opening up to 48.6 yuan. It can be seen that the biggest victims of this way of regulating the market are often public investors. In the mature market, the distribution system is very marketable, such as the registration system adopted by the United States, the exchange to determine the issue of shares.　　Although our country has adopted the approval system, it still controls the stock issue through various non-market means. Although the regulator's "management preference" may help our country's capital market not to have the big problem, but the manager has assumed the responsibility which originally should not undertake. As a result of the Southern warrant incident, many investors blamed the systemic risk of the stock market on regulators ' regulatory blunders, further exacerbating the pressure on regulators and causing regulators to risk aversion, leading to a difficult development and innovation in capital markets. Financing margin, stock index futures and so on have been slow to launch, which is related to the administrative pressure of the responsible party. But in the mature market, it should be the exchange to undertake the securities issue, new product introduction and other business. Exchange does notis a subsidiary of the regulatory body, many exchanges have become listed companies. Regulators do not have to take on many risks. Therefore, we should learn from the market mechanism of mature markets, so that the transaction is very active market faster and better development.　　If China's exchanges can also become listed companies, perhaps a lot of regulatory problems will be solved. Speeding up the opening pace and establishing the global stock market the gap between our regulatory system and the mature market can be long-standing, perhaps with a low degree of openness in our capital markets. Originally China's banking, insurance and other open degree is low, and the opening of the capital market falls behind them.　　Speed up the pace of opening up, so that more QFII can enter the mainland capital market, while allowing more qdii products to be issued in the territory, investment abroad, not only can let the domestic regulatory concept gradually internationalized, and can accelerate the maturity of our investors. At present, there are obvious spreads between a shares and B shares and H-shares, among which many large market share prices are lower than those of H shares, while the shares of small and medium market stocks are much higher than those of B and H, because a-share investors have "trading preferences". This leads to the valuation system of a shares is still very distorted, the market-oriented pricing mechanism of capital market, value discovery function is difficult to play a role. If you can get through a shares, the barriers between B shares and H shares allow domestic public investors to invest in the securities markets of Hong Kong and Taiwan, which will trigger a "valuation revolution" in a-share market, which makes valuations of a shares more reasonable and regulators can mitigate the pressure caused by "speculative preferences" in the market.　　The opening of the securities market also includes the domestic listing of overseas listed companies. At present, SSE is ready to launch the "International Board", that is, to allow foreign enterprises to be listed in China, which is in line with international capital market practice is a major initiative.　　To build an international financial center, Shanghai should first form a global securities market, which should include a number of listed companies abroad and foreign investors should occupy a certain proportion, such as India, South Korea, Japan and other stock market foreign investors have reached 30-50%. To China's capital market, openness should not only be embodied in the rules and commitments, but also put into action.　　Chinese capital market participants have had too much anticipation, too long to wait, but still looking forward to the next 10 years: All the promises will be fulfilled, all the waiting will be possible; a market-oriented, full-featured global capital market will emerge in 10 years; an international financial centre will consultation fee capital and talent from around the world. Please cast zjh@ssnws.com.cn for manuscripts