Cao Zhongming Interpreting the first SFC in 2011 the focus

 China Economic Net, January 17 Recently, the 2011 national work conference on securities and futures regulators in Beijing. Shang Fulin, 2011, from eight aspects of the securities and futures regulators have made specific arrangements for key tasks: one, first, accelerate the construction of multi-level capital market system, and expand direct financing. Promptly begin to expand the scope of the pilot work in Zhongguancun, accelerate the construction of a unified national OTC market regulation. Further promote the bond issue regulatory reform, actively support the banks to conduct trading exchange bond market and significantly increase the size of bond financing. Continue to grow the market and the small blue-chip board. The implementation of GEM localization, support the strategic development of new industries.

beginning of the year the work of the Commission to deploy throughout the year, the industry will naturally lead to widespread concern, especially the first priorities identified in the the Lively. In recent years achieved a certain degree of progress in the financing, direct financing model from the combination of direct and indirect. Why are direct financing focus of the work it? Cao Zhongming Bowen today released this interpretation, he pointed out that the Chinese economy has maintained fast development momentum, from the direct financing of the capital markets credit. Direct financing to promote the economic development, economic development and nurture the capital market between the two has formed a complementary relationship. However, the expansion of direct financing must take into account the affordability of the capital market to be moderate. Otherwise, it will lead to bad consequences.

article pointed out that in recent years to expand direct financing of capital markets in terms of fruits. Following the nearly 800 billion in 2007 ranked first in the world of financing amount, the A-share market last year, the first time exceeded one trillion yuan mark, the amount of the financing world title again. Financing is one of three functions of capital markets, but certainly not the only function. However, due to wrong positioning of the stock market had resulted in Although the stock market was born 20 years a large number of private enterprises are also listed, but did not change the pattern of localization errors. Thus we see that listed companies Finance function is in the stock market to the limit at the same time, the investment function is severely distorted.

A-share market last year, winning the global amount of financing, but A-share market has performed poorly. Financing is intended to promote economic development, corporate profit. While the expansion of direct financing, the market return is surly. 
About the Author:

Cao Zhongming: independent financial writer. Emphasis on the policy side, current hot spot analysis, advocating for the standardized Chinese stock market, concerned about the happiness or misery of small investors.