The impact of stopping IPO on the stock market should be viewed from two aspects. On the one hand, the suspension of IPO may lead to a decline in market liquidity, which will have a negative impact on the short-term performance of the market. IPO usually means listing new shares, which will inject new investment opportunities and vitality into the market. When the IPO stops, investors will lose these new investment options, which will lead to the decrease of market liquidity. This may cause panic in the market and weaken the stock market.
On the other hand, stopping IPO may also have a positive impact on the market. Stopping IPO can reduce market volatility. IPO usually causes short-term market fluctuations because investors are uncertain about the valuation and prospects of new shares. Stop IPO, the market will lose the source of this fluctuation, thus stabilizing the market. Stopping IPO can improve the long-term value of the market. Due to the listing of new shares, investors may flow funds from existing stocks to new shares, resulting in scattered market funds and insufficient long-term value. Stopping IPO allows investors to put more money into existing stocks, thus increasing their value.
Stopping IPO does not mean that the stock market will remain in this state forever. On the contrary, stopping IPO may only be a stage of stock market development, and the future trend may be different. With the development of the market, the investment demand of investors will continue to increase. This will prompt regulators to re-examine the policy of stopping IPO and gradually relax relevant policies to meet market demand. Stopping IPO may prompt investors to look for new investment opportunities. In the stagnant IPO environment, investors may turn their attention to other investment channels, such as bond market and futures market, thus promoting the development of these markets.
To sum up, the impact of stopping IPO on stock market performance is complex and multifaceted. In the short term, the suspension of IPO may lead to a decline in liquidity and an increase in market volatility, which will have a negative impact on the stock market. In the long run, stopping IPO may improve the stability and long-term value of the market. In the future, with the development of the market and the change of investors' demand, stopping IPO may only be a stage of the development of the stock market, and the market will gradually recover its strength. In any case, investors should remain calm, rationally face the changes in the market and make corresponding adjustments according to their own investment strategies.