Let me briefly talk about the origin of the big and small mistakes:

1. The Chinese stock market has been a weirdo since the first day it was established in 1990. At that time, the government was afraid of the control of state-owned enterprises. The rights are privately controlled, and there are specially set up tradable shares and non-tradable shares. Non-tradable shares generally account for more than 60% of the total share capital and are controlled by the state. In this way, even if one of you buys all the tradable shares, you can't even think of controlling the company, because more than 60% of the company's non-tradable shares are still controlled by the state. This is unique in the history of the development of the world capital market and can be described as a major feature of China!

2. With the development of the capital market, the disadvantages of this equity structure have gradually emerged:

--Many non-important companies, such as department stores, commerce, home appliances, etc. The state felt that these companies had no impact on national security, and their performance was not good. The state had to invest a lot of energy in management, which was not cost-effective, so it came up with the idea of ??selling the non-tradable shares controlled by the state. However, due to regulations at the time, this Some stocks cannot be circulated, so the country has been thinking of ways to do this. Every time it thinks about it, the stock market plummets.

--Since state-controlled stocks cannot be circulated, major shareholders representing the state are not at all concerned with the rise or fall of stock prices because it will not affect their interests. Therefore, these major shareholders often make Things that harm the interests of listed companies cause stock prices to fall sharply. Such as occupying the funds of listed companies and maliciously issuing new shares. If this continues, it will obviously be detrimental to the company's governance and operations.

3. Since 1998, the state has been trying every means to obtain circulation rights for this part of non-tradable shares. However, when the state first set up non-tradable shares, the so-called state-owned assets assessment was purely based on the head. , the cost of these non-tradable shares is frighteningly low, many of them are just a few cents, or even a few cents, which is very different from the cost that investors spend dozens of dollars to buy in the secondary market, so the non-tradable shares are allowed to be circulated. Quan's plans were always rejected, and every time he tried it, the stock market plummeted.

4. The five-year bear market from 2001 to 2005 was caused by the so-called full circulation. The stock market fell from 2245 points to 998 points. This problem cannot be solved anymore, so it was launched in 2005. Share split. Let the major shareholders of non-tradable shares give a certain proportion of shares to the shareholders of tradable shares for free, and then obtain the right to be listed and circulated. This plan is different for each company, but it must be approved by more than 66% of the shareholders of tradable shares. In order to buffer the impact of these non-tradable shares, a batch listing schedule was set during the share split, and these stocks obtained circulation rights from 2007 to 2010.

So the circulation time of large and small non-tradable stocks you mentioned was already set in 2005-2006. This time was the beginning of the bull market. Sooner or later, stocks will be circulated. If this problem is not solved for one day, this problem will be like a sword hanging over the heads of Chinese investors, and the stock market will never rise. In the second half of 2005, the solution to this problem came out. It's still unfair, but there is no other way but to let the country take advantage of you. It is impossible for stock investors to take advantage of the country. It is obviously unfair to compare the cost of small and medium-sized enterprises with a few cents compared with ordinary shareholders, but this is a Chinese characteristic. Who allowed us to be born in China? And it was all approved by vote at the time.

well! All I can do is sigh!