A Shares Must Adhere To The Direction Of Marketization, Rule Of Law And Internationalization.

MSCI is amazing! It lets Chinese government and media take the initiative to do free advertising for it. Since 2014, especially after June 2015, you can search MSCI on Chinese search engines, and there are countless news reports in Chinese.

This is the result of MSCI's desire! In fact, this is what we want: the external events forced the reform of A shares. Obviously, the A stock entry problem is neither the result of bargaining between A supervisors and MSCI, nor is it something that regulators can amend a few rules or improve several technical indicators.

In fact, whether or not A shares enter the stock market is not a matter of modification of a number of technical indicators or regulations. This is just a polite explanation of MSCI's avoidance. In fact, MSCI avoids the deep question of the A share system.

You know, A share entry is not MSCI's unilateral calculation. It has to be reviewed by numerous international institutional investors. This represents the confidence and intention of international capital to integrate the market into portfolio investment. Let's imagine: a A share market with strict administrative control, who dare to participate in it?

Marketization is the infrastructure of rule of law, and marketization and legalization are the assumptions of internationalization.

In areas where marketization and rule of law are perfect, administration is relatively weak; and in all areas where marketization and rule of law are backward, the administration will be very strong.

Without marketization and rule of law reform, internationalization is a slogan or a castle in the air.

Is the market better or the administration better? Obviously, the A share market has made the choice: excessive administrative control or administrative intervention is a great help to the investors, and is also the best administrative protection for investors. Therefore, the reform of A share "marketization" is huge and difficult. If anyone dare to put forward the market reform, the shareholders will dare to curse, and the "market decision" role will be nowhere.

As to whether A shares can be incorporated into the MSCI index stock, this article is referred to as "A share into the friction".

In 2014 and June 2015, MSCI announced that it would not be included in A shares for a time. This result attracted more attention and curiosity from Chinese media and officials.

Why is this so? Where are the reasons? Indeed, in repeated questioning,

In China, free advertising and knowledge has been popularized, and it has increased its status and popularity in an invisible way. It made more than 100000000 investors suddenly know what MSCI was. In the past, MSCI had a very "rustic" name in China. It was called "Ming Sheng". Few people knew who it was. People even thought it was a private fund in China.

In the debate on entering the moldage, China's more than 100000000 ordinary shareholders have no need to explain to you, you can know what MSCI is, and no one will ever use the name of the dirt: Ming Sheng! This is the progress of shareholders, of course, it is MSCI's progress, it has become the last big winner.

In addition to the QFII qualification and quota approval on the surface, what is more important is the excessive administrative intervention in the A share market, for example, which enterprise is entitled to IPO.

The market and investors have no say in the time and the price of IPO. The SFC has the right to close the primary market at any time, suspend IPO, and have the right to open the primary market at any time and restart the IPO. The reorganization of the listed companies can be suspended at will, and it can be suspended indefinitely. What is even more frightening is that all the IPO must be blocked at 44% of the daily limit on the first day of the IPO, and then there must be at least 10 trading boards. Some new shares can even pull 30 ups and downs. This is a world-class joke, but our shareholders think it is reasonable.

IPO registration system reform is the touchstone of market-oriented reform. It is a major reform of the Central Committee's decision and the NPC's authorization.

Registration system reform is a major breakthrough in the market reform, and it is a barrier in the A share market. However, in reality, IPO registration system reform is difficult and huge resistance. The official mentioned that the "registration system" is three words on thin ice. Investors heard the "registration system" three words trembling and startled. Some people who read textbooks of economics criticized the registration system reform as "market fundamentalism", and demonized the registration system, so as to hate the registration system. In such an atmosphere, it is obvious that the IPO registration system reform has stalled or interrupted.

In fact, the three word registration system is only a name. It has no uniform format or fixed mode. Its essence is the "de administration" of the primary market, and the decision of IPO is pferred from the government to the market and investors.

In fact, if people are afraid of this appellation, we can also change a way of calling, for example, the "approval system of market-oriented reform" is still "de administration", and the government's excessive control over the primary market or excessive administrative intervention should be abolished, and the IPO's right to speak will be handed over to the market and investors.

Otherwise, the A share market is not a real market, and the role of "market decision" is empty talk.

Therefore, the biggest short board of A share entry is not the modification of 32 technical indicators or regulations, but the deep level problem of A share system. It is more straightforward to say that market share, rule by law and internationalization level are not up to standard, which directly leads to A shares can not be included in MSCI index samples.

This is a matter of institutional level, but not a technical one.

If it is a technical problem, we can work overtime to solve it, but if it is a system level problem, it will take time and determination to carry out self-improvement and self-improvement.

This is the essence of the problem. Therefore, we should not put the cart before the horse, the cause and effect should be reversed in the A share market.