Whether The A Share Dividend Proposal Is Feasible Remains To Be Studied.

Ms. Shu Wei recently issued a new round of crusade against the A share market.

The article puts forward two suggestions for reform: first, the entry of leveraged funds into the stock market leads to false stock index and false prosperity of stock market. Regulators should strictly prohibit illegal capital from entering the stock market to prevent false prosperity.

Second, we need to set two basic prerequisites for stock issuers and executives to cash in: first, the average annual dividend yield is not less than the risk-free return rate for ten consecutive years; two, the average cash dividends in the ten consecutive years are no less than the direct financing of the stock market.

Financial markets can not have no leverage, bank loans are leverage, income swaps are leverage, equity pledge financing is also leverage, financing is the process of lengthening leverage.

But the long leverage beyond the regulatory capacity is a terrible killing device. At this time, there are only two ways to go: first, deleveraging and shortening the scope of supervision; two, increasing the system design.

The quality of financial development is determined by the short board of market and regulation rather than by a very small number of elite trading processes.

Ms. Liu Shuwei's respect for character is respected, and her proposal is just a drastic measure.

The author expresses unreservedly support for the first clause.

One of the most important reasons for the turmoil in the stock market in 2015 is that the risk of off site capital allocation is far beyond regulatory expectations. Deleveraging triggers a chain reaction.

The opaque leverage ratio has become the trigger for irrational irrationality in the market. When the stock price drops to the warning line of some companies' equity pledge, investors will be worried about triggering the leveraged landmine.

And such a hot event like Bao Wan dispute, we are also worried about whether there is excessive risk capital.

Will deleveraging cause terrible consequences?

The latter proposal of Mrs Lau is explosive and equivalent.

Carry out sex change operation, hit the key that the executive sells money, the listed company continuously increases and so on.

This way makes the stock market somewhat similar to the bond market. The holders of high-grade bonds get the investment income through dividends, and the investors of the listed companies can receive equal cash dividends compensation.

The question is, if A share listed companies are so rich in cash flow, why do they have to go public?

The stock market will therefore become a low risk investment market. At least from the ten long cycle, investing in stocks is just as safe as investment banking products. Investors will configure the assets with risk aversion into the stock market, but wait a minute.

Does the essence of the stock market deviate from each other? The stock market is not to rally people's strength to support the prospects of the company, risk sharing, and then proceeds to share.

Besides, does the stock investment have two sources of income, that is, the rise and fall of the stock price itself and the dividend? The high turnover rate of the A shares does not mean that the market is the main pursuit of the stock price itself. Investors do not consider dividing the dividend and buying back, as long as the share price goes up.

An old case is interesting.

As we all know, Buffett has made big profits in PetroChina. He told investors that there were two reasons for buying PetroChina, one is that the price was underestimated. The two is that PetroChina clearly promised to distribute 45% of the net profit of 145 billion 625 million yuan as at the end of 2007 for the annual dividend distribution.

When it comes to doing so, PetroChina returned to A shares in 2007, when the company disclosed that from the beginning of 2000, the company continued to pay two dividends a year, totaling 305 billion 500 million yuan, which is indeed a good company with credit.

Its parent company has the largest share of stock and the biggest profit. Buffett bought a high dividend at a low price and bought 7 times before the issue of A shares.

In May 23, 2013, CNPC proposed "162nd amendments to the articles of association of the company" at the shareholders' meeting, and clearly stated that the proportion of cash dividends should be no less than 30% of the net profit attributable to the parent company.

30% also many, but investors in the A share market who buy a small number of shares at a high price of 48 yuan are more miserable.

PetroChina has made an unprecedented commitment to 45% net profit for dividends, equivalent to the right to be a listed company, and 45% as a disguised bond payable annually.

PetroChina is not stupid. It is a last resort to make up for its weakness in credit.

No credit accumulation can only show integrity to the international market by this unconventional means, so that subsequent siblings can be listed overseas.

Ms. Liu Shuwei, taking Yi Lianzhong as an example, shows that there are Ponzi schemes in the stock market.

Listed companies can not create wealth or even lose wealth. The shares held by stock issuers and directors and executives can not be reduced to cash in any form in the two tier market, and may even be cleaned out.

This is a process of selection and supervision. Without supervision, there will be nothing.