Do not understand the reform of China IPO

 IPO of the three do not understand the reform (declined Zhuanzhai)
Commission began to engage in reform of distribution system, and do not remember this is the fifth or fourth time.
Frankly, to see IPO reform, I always have three do not understand.
first IPO What is the purpose of reform to achieve? is to improve the pricing efficiency, or protection of the interests of small and medium investors.
be honest, I understand that the Commission has not thought Reform of each IPO launched in the end to do? I see the uproar of public opinion in the market, the protection of the center of gravity located in the so-called interests of small investors, CITIC retail success rate has been care is regarded as the greatest achievement of this reform .
If located in the protection of rights and interests of small investors, the inherent underlying assumption of this is: the moment the first world crown IPO underpricing in China (140%) of its existence is reasonable, thus retire machines, if it is reasonable , the next will produce fair and unfair distribution of the problem.
But if this thing is itself a product of the low efficiency of the market, we also need to protect it? logic Conversely, if the market solved the pricing efficiency, shares hit is no longer a high risk-free income, there is a big risk even one thing, then the objective to protect the interests of small investors, the question will be furious at you?
allocation and efficiency of the market is bound to be low temporary transitional policy, can not become the focus and purpose of the IPO reform, think about the so-called placement system to protect the interests of small investors, is actually due to market inefficiencies arising from a risk-free proceeds, or the effectiveness of such reforms Some are more or less ridiculous.
Next, the natural question is, China has long abnormally high IPO underpricing in the end the root causes behind where?
a lot of people say that the SFC for distribution price control, artificially created A natural with the secondary market spreads. so vulgar as a reform once the adjustment of the technical level, open the issue price, issue price and the secondary market for direct integration, not to eliminate this problem naturally do?
Indeed, the Commission for the issue of control is there, used to be mandatory to provide a fixed issue price-earnings ratio, gentle and a little later, to the administrative window guidance. regulators idea is not without reason, if the issue price and the laissez-faire high valuation closer to the secondary market bubble, the first funds raised will far exceed the expected amount of the financing business. This is not only a waste of resources, but also man-made original equity investors, who shares the wealth of plunder, in essence, is the IPO did indeed still create a 138% on the average income.
I always do not understand, there are some things go according to market the idea is very simple, the eyes of the regulators how to do it that difficult to do?
example speaking, the first issue, why should we artificially create a short-term imbalance between supply and demand, artificially created a the impact of causing you so much?
China's stock market for nearly twenty years out, the mainstream market views of people actually still use the original equity shares of the costs to weigh the reduction of market pressure on the wealth creation mechanism is really a great contempt for the value. must allow the market to establish a modern financial basic concept of common sense, Get low cost, but there is over-estimated its market mechanisms and institutions. Imagine if the market itself is reasonable (to obtain the necessary capital required rate of return), you also need reduction, or reduction of future cash not needed investment allocation for you.
not let go, afraid of nothing but worry about the market potential of high valuation of burst, in essence, it is denied the efficiency of markets, protection of the inefficient administration. artificially created a silly fight the objective conditions of funding . new shares so that the old stocks also.
really lifted the administrative control of the stock supply, but also the autonomy of enterprises to real capital, which the dealer has dared to hold high the high hit, it is not obvious who give money to the original interest you. understand a thing. in China to do it really that difficult to do? do not understand.
There is also a technical problem, that is, Inquiry is essentially an information gathering mechanism. release mechanism in the inquiry, the underwriters have the information advantage can be collected to institutional investors on the demand and IPO valuation information, and can thus develop a more accurate The issue price. So the people involved in inquiry is essential to telling the truth. So speaking, the core of the system is a set of inquiry incentive and restraint mechanisms to ensure that people can tell the truth inquiry, the underwriters are not allocated to the stock right sets of Inquiry's true intentions, What kind of inquiry. do not understand.