Chinas entry into the people not retreat

Source: Taiwan Wangbao

The Chinese A -share market ushered in a historic moment. In 204, large -scale A -share component stocks were officially included in the MSCI index. Completing the third stage of this year is also the largest expansion action in history.After this expansion, A shares accounted for 12.1%of the MSCI China index weight, and the global emerging market index weight climbed from 2.5%to 4.1%.The weights of the two indexes a year ago were only 2.3%and 0.75%, an amazing increase.

It is worth noting that in the past, A shares that could be included in MSCI were mostly large -scale stocks such as the CSI 300 Index, but this time the expansion was widely included in many medium -sized stocks from small and medium -sized boards and GEM, of which biotechnology medical care, Information, electronics and other emerging industries.It is obvious that under the guidance of the Chinese A -share market, it is no longer Wuxia Amon. The diversity and growth of the industry have gradually opened up, and they are slowly seen by the outside world.This change brings not only the external funds crazy injection (this time entering the Mo will inject 30 to 40 billion US dollars into funds in the A -share market), the deeper meaning is to break the foreign countries' fascination with the retirement of the Chinese country and the people's retreat).think.

It seems nothing to do between the two, but after the pumping and cocooning, it can be found that the return of the country's retirement and the nature of the capital market is basically violated.Imagine that when the power of an economic system is becoming more and more concentrated in the country, and the degree of nationalization of the enterprise is getting higher and higher, does investors dare to put money into the people with enterprises with peace of mind?The answer is definitely not.In other words, when the country's entry into the people's retreat or expectations, the role of the capital market will undoubtedly be greatly weakened.It seems that it has not happened.On the contrary, in order to cooperate with the signing of the first phase of the Sino -US trade negotiation agreement, the President of China ... and the Vice Premier Liu He of the State Council has recently stated in public in public that he is willing to implement and accelerate the opening of China's financial market.This means that the importance of China's capital market in the future will be more manifested, and it will also strongly resist the recent views of the country's retirement of China.

Of course, from the perspective of opening up the capital market, it is one thing, and it is another thing from the actual corporate mergers and acquisitions data.According to statistics from FITCH RATINGS, internationally renowned and other institutions, in the first half of 2019, companies with the background of central enterprises or state -owned enterprises behind them are based on 47 private enterprises in Shanghai.(52 pens).Fitch understands that this year's equity acquisition transactions are likely to set a historical record.The state -owned enterprises or state -owned enterprises have entered the main enterprises, which has caused the outside world to doubt the retreat of China's entry and the people.

However, such an interpretation is one -sided and arbitrary, which may form a fallacy. It is the so -called merger and acquisition behavior, two interpretation methods.Due to the increasing economic downlink pressure, the management of private enterprises is becoming more and more severe, and it is difficult to obtain funds required for operation in the banking system.As a last resort, you often choose to sell stocks (or pledges) to appear, or change hands to operate others.In the past two years, the overall situation seems to have signs of acceleration.

From the operating status index of the Chinese enterprises compiled by the Yangtze River Business School, it can be seen (officially compiled in June 2011). In the past two years, the index has almost been walking up and down in the watershed.It's far above 50.This also means that Chinese enterprises need more funds to support, but in practice, banks based on risk considerations, but refused to pay, forcing the state forces (especially local governments) to involve.It is the behavior of the state -owned enterprises that I have seen from the outside world.

According to the Chinese market, in order to prevent the operating conditions of private enterprises from worsening and even closing the bone card effects, at the end of 2018, Chinese governments at all levels of Chinese governments raised about 700 billion yuan of bailout funds through various channels.Naturally, equity acquisition has also become one of the important options.In this regard, the intention to retreat from the country is obviously stabilizing the economy and controlling risks, not to suppress private enterprises and go back.As if the Asian financial turmoil occurred in 1997, China provided a huge amount of foreign exchange base to assist the Hong Kong government to enter the market and buy all blue -chip stocks into state -owned enterprises, so that Hong Kong can survive the crisis in peace.At that time, it seemed that he had never heard of seriously criticizing the retreat of the people in Hong Kong.

Not to mention, the Chinese economy has grimly became a consensus internally and outside.In the face of an increasing crisis, Beijing is actively involved in private enterprises through policies, which will not be surprising at all.During the 2008 Financial Tsunami period, the US government actively involved in companies such as Fangli, Fang Limei and AIG.China just moved forward to rescue companies and prevented possible crisis early.Wait until the economy is warming up, and then select the opportunity to slowly release equity, just like the past in Hong Kong and the United States.

Such a view is definitely a test.The reason is very simple. In the past, we have always emphasized that the five six, seven or eight -nine rules of Chinese private enterprises have fully confirmed the importance of private enterprises to the Chinese economy.If it is pulled away from the private enterprise, if you want to maintain a strong economic momentum, you are simply seeking fish.I believe that Chinese leaders will not be able to see this situation.Speaking more words, there is advancement and retreat, maybe this is the true meaning of this wave of country to retreat.