The role of China's stock market

 The role of China's stock market
Xuezhao Feng
21 Century Business Herald
Xue Zhaofeng site: www.xuezhaofeng.com
Chinese stock market's first role is to provide speculation, ! That is, observation of human behavior, economists, can not be seen from the behavior of a person in the end is in the The judge, would like to use their own design
a person, born to choose, born to invest, born to speculation, born to the four gambling mm said, referring to the same behavior. buy eggs are betting that it does not stink; Reading University It is more decent bet in the future; buy lottery tickets, bet they will be in; do not buy lottery tickets, are betting they will not in; married his wife have children, are betting they can enjoy their grandchildren; not marry his wife, are betting they will tired for the marriage.
Some say the casino is a money only from the hands of the audience, to a musician's hands, and did not increase, that is the , but had a feeling; gambling not with money, but gamblers hope to get rich and buy the occasional thrill of winning. If you do not see this, we can not explain why the concerts, and casinos are all human beings are eternal, and prosperity flourishing industry.
investors play the stock market, just to make money. Their behavior is neutral. As Mr Tan put them as a followers or gambling.
talk about the Chinese stock market which may turn the second role. it is state-owned enterprises to raise capital. Throughout the ages, the performance of state-owned enterprises are worth mentioning. In order to prevent loss of state assets, in order to prevent loss of state-owned enterprises, we have no idea how much effort it took. As everyone knows, the loss of state assets to state-owned enterprises to a loss. So,cheap UGG boots, how can state-owned enterprises to add funds? stock market is one of the methods.
China the stock market, fund-raising has long been a place of state enterprises. shareholders of the funds is to support these state-owned enterprises and the expansion of the business. However, the losses of state-owned enterprises is caused due to its intrinsic structure, not due to lack of funds . Therefore, to collect money and can not reverse the state-owned enterprises continued losses. In other words, the state-owned enterprises that are not optimistic about the prospects of return.
why China's stock market still so hot? reasons are numerous, including China investment channels (ie, speculative channels) rarely successful investment (speculation), the demonstration effect of those laid-off workers to stocks as a professional, state-owned enterprises by virtue of executive privilege is still profitable, the general accounting fraud frightening false reports being covered up the truth and so on. These factors all help explain why China's stock market though very irregular, but still able to gather a lot of money to attract a lot of people involved.
Another important reason is that a lot of trouble in the capital, the sources of is the state capital. The results, for the traders, the making of their own, costing the state, so they are particularly reckless, especially adventurous, but also extremely reckless illegal operations. Economists should not make value judgments, criticize, too hard told people not to buy; but if you bought a junk stocks, you'd rather hide the truth, I hope someone will take over. So, although the poor performance of many listed companies, but many people still hope they can keep playing.
China's stock market, and a meaningful role, is to promote state-owned enterprise restructuring. Some time ago,UGG boots clearance, we make a serious loss in the debate, market, it can be, way is to let others enter the market,UGG bailey button, mergers and acquisitions of these state-owned enterprises, clean up the state-owned enterprises. preferential treatment . to fund it? to exchange it with the state-owned shares.
so that the internal governance of state-owned enterprise system,Bailey UGG boots, will automatically re-acquisitions in the stock market's been corrected and improved. state-owned enterprises to the transformation, China's stock market this channel can be out of the stock market, can take a leading role in the future.