Chapter 36 3. What is the share reform?

Share split, also known as share split, means that some of the shares of a listed company are listed and traded, and the other part of the shares is temporarily not listed and traded.The former is mainly called tradable shares, and its main components are public shares; the latter is non-tradable shares, mostly state-owned shares and legal person shares. Share splitting is a result of special historical reasons in China's stock market. During the special development and evolution, listed companies in China's eight-share market generally formed "two different types of stocks", namely non-tradable shares and social tradable shares. These two types of stocks formed The market system and structure of "different shares with different prices and different rights" has been established.

The problem of split share structure is generally considered to be the number one problem that plagues the development of my country's stock market.Due to historical reasons, 2/3 of the shares in my country's stock market cannot be circulated.Due to the disadvantages of "share split" such as different rights for the same share and different benefits for the same share, it seriously affects the development of the stock market. But our government misjudged the situation at that time, and even thought that the rising stock index was the result of the share reform.I have severely criticized the share reform itself since 2005. I think the share reform is wrong, why is it wrong?At this moment in 2009, I think it is even more necessary to talk.The reason why it is wrong is because we have not learned how Western countries carry out share reform.

Western countries take Britain as an example. Their experience in share reform is very important, which is called the three laws of share reform. Law 1: A company undergoing shareholding reform must be led by professional managers with fiduciary responsibilities.However, our shareholding reform did not require this, and our listed companies generally lack fiduciary responsibilities.What is Fiduciary Duty?Let me take the first half of 2008 as an example. When the stock price began to fall from more than 5,000 points, the professional managers of our listed companies sold a large number of stocks regardless of the interests of our small and medium shareholders.You say it's illegal for them to throw together like this?Legal, because this is what the previous government promised them.But I want to ask them, do you have any conscience in your heart, do you have any fiduciary responsibility to our small and medium shareholders? This is a soft constraint, a conscience, and has nothing to do with the law.But we find no such conscience at all.They said that the government promised us that we have to sell it, and if the stock price falls, it will fall to you, so we don't care.Why is that?In the final analysis, our listed companies lack fiduciary responsibilities. This law is different from that of the UK. They emphasize that managers of listed companies must have fiduciary responsibilities.

The second law, the UK emphasizes that only good companies can undergo share reform, but we, anyone can reform.Of course most of us are bad company.The share reform of bad companies is even worse, causing more harm to the common people.Why does the UK only agree to the company's share reform?Because the result of the bad company's share reform will hurt small and medium shareholders, everyone will resent the government in the end.Therefore, the British government does not allow bad companies to reform their shares, but only allows good companies to reform their shares.And the result of the share reform of all companies is that the share reform of bad companies makes the situation worse, and makes our small and medium shareholders resent the government even more.

The third law is the most important point I have always emphasized, that is, after the share reform, the British government still retains a share of gold shares. What is the intention?This gold stock has a veto.This is so important.In 2005, I have been appealing and even begging the China Securities Regulatory Commission to keep a share of gold stocks, but the China Securities Regulatory Commission did not do so. The government completely withdraws from the stock market without anything.What is the result without gold stocks?Recently, the media has frequently interviewed me. Professor Lang, the problem of big and small nonsense has come out. What do you think?The problem of large and small non-tradable shares began in 2005. Holding less than 5% of the shares is called small non-tradable shares (small non-tradable shares).As for the big non-tradable shares, they hold more than 5% of the shares, so this small non-tradable stock has been sold within a year.I won't go into details on this issue, I believe all investors should know.After this big and small problem came out, it caused too much shock and pressure to our stock market, so our China Securities Regulatory Commission proposed many plans to make up for it.

Therefore, at the end of 2008, the China Securities Regulatory Commission launched a series of programs to remedy the situation.The media asked me, Professor Lang, what do you think about these plans launched by the China Securities Regulatory Commission, and do you think it is right?How can I answer it?I said I don't want to be interviewed by you.why?Because I don't want to talk about repairing the past, why?The China Securities Regulatory Commission should never have come to this point. That is to say, if the China Securities Regulatory Commission started its shareholding reform in 2005, if they were willing to listen to Professor Lang’s words, as long as they keep one gold share, even if our listed companies lack fiduciary responsibilities, Even if the bad companies in our listed companies can be reformed, the problem will not be so out of control, and today's problems will not happen.For example, the government has a promise about big and small non-compliance issues. It doesn’t matter. The promise can be postponed, but let me tell you, one vote of veto is enough. In order to protect the interests of small and medium investors, the government should keep a share of gold shares and one vote of veto. Then today's big and small problems will not become a problem.You see that the stock market is dying, right? One vote vetoed it.Promise to postpone, and wait for the stock market to stabilize before selling.But when you give up one of your gold shares, all small and medium shareholders will pay for the government.

So this is what I am most dissatisfied with.If you say you don't know what to do, it is understandable that there is no precedent in this world, but this has been done since the time of Margaret Thatcher.And I also kept telling the China Securities Regulatory Commission to keep a share of gold stocks through TV media and print media, but it just didn't listen.Just kidding with readers, I don't know why, anyway, it doesn't listen to what I say, but it will definitely listen to what others say. Before 2008, I would be very angry. The media interviewed me in the past six months and said, Professor Lang, you have calmed down a lot recently.I said frankly, I really don't know how to be angry, why?Because I have matured, I have grown up.And I found that when what I said was right, the result of them not listening was to make me the biggest beneficiary. People invited me to speak everywhere and wanted to hear my correct views. I was so happy.So it’s best for you not to listen. I’ll tell you what I say, and you do what you say. After a few months, you’ll still have to come back and listen to my speech.