Chapter 1059 [The essence of the capital market is to suffer from poor information]

On weekends and weekends, the media are reporting on the news of the A-share defense war, and investors are also discussing the A-share defense war.

However, Fang Hong did not pay attention to external information, but concentrated on arranging matters for the SGX.

Jingxinju villa, study room on the second floor.

"The reviewers for the adjustment of the NSE 50 index sample stocks have selected a group of elites from Qunxing to form a consulting team. Let Shi Yao handle this matter as soon as possible." Fang Hong thought and ordered.

Tian Jiayi was also in the study. She sat aside and immediately asked: "The site of the SGX headquarters building is being selected. Huayang Group is interested in taking it."

Hearing this, Fang Hong said without much thought: "Forget it, give others something to eat, you can't make enough money. Tell Hua Yu that they won't get involved in the headquarters building project and bidding. The exchange headquarters building is not important, nor is the address in the city or the layout of the building."

It is already July 11th. Fang Hong has decided to let the exchange open on the first trading day of 2016. There is not much time left for SGX. In less than half a year, the exchange headquarters building will definitely open. Construction could not be completed in half a year, so we had to first identify a building in the new city as the temporary headquarters of the exchange.

It will be a little troublesome to wait until the new headquarters building is built before moving, but it is not a big problem. It will only cost a little more than the budget. The new city's finances are not short of this budget.

Fang Hong looked at the materials and documents from the SGX in his hand and nodded to himself and said: "Who is the guest of the stock market? This question is very important. It is not the issuer or the listed shareholder, but the investor. Further restrictions on issuance are needed. Only those who are major shareholders can do it.”

Restricting issuers and major shareholders, in turn, protects small and medium-sized shareholders and investors. If SGX wants to present a new look, it should not educate investors, but educate issuers so that issuers know that investors are their bread and butter and their guests.

The attitude towards issuers is to adopt the principle of "easy access and strict control", that is, it is easy for companies to list on the SGX IPO, but once they are listed, they must be strictly controlled.

Fang Hong glanced at Tian Jiayi and said: "Write it down and sort out my thoughts later. For companies listed on the SGX, the issuers and major shareholders' shareholding reduction rules will be adjusted. On the basis of the original rules, Additional restrictions on shareholding reduction will be added for listed companies regardless of their size."

The so-called big and small non-holdings, "non" refers to non-tradable shares. Non-tradable shares can be circulated after the lock-up period is lifted, which is the so-called large and small non-holding reduction. Non-tradable shares holding less than 5% of the shares are called small non-tradable shares. , holding more than 5% of the shares is called Dafei.

SGX's large and small companies have a three-year sales restriction period, which means that the three years after the company is listed are within the sales restriction period. If you want to reduce your stock holdings from the secondary market, you need to wait until three years after the listing.

Fang Hong said slowly: "Regarding Dafei's shareholding reduction regulations, after the three-year sales restriction period, the shareholding reduction in the first year shall not exceed 20% of its total holdings, and the reduction in the second year shall not exceed 20% of the remaining shares. 15%. In the third year, the reduction shall not exceed 10% of the remaining holdings. In the fourth year, the reduction shall not exceed 5% of the remaining holdings. The reduction cannot be made freely until the fifth year.”

Such regulation adjustment means that if the CEO of a listed company wants to reduce his holdings, he must first wait for the three-year sales restriction period to pass. There will be restrictions on reductions in the next four years. He will not be able to reduce his holdings until the fifth year, which is also the eighth year after the company is listed. You can reduce your holdings freely.

For example, the total share capital of a listed company is 10 million shares, and a major shareholder holds 10% of the shares, that is, 1 million shares. In the first year, the maximum reduction in holdings can only be 20% of his shares, that is, the maximum reduction in holdings is 20%. Thousands of shares. In the second year, the reduction of holdings shall not exceed 15% on the basis of the remaining 800,000 shares, that is, the maximum reduction of holdings is 120,000 shares. Then in the third year, the holdings will be reduced according to the prescribed ratio by analogy. It will not be free until the fifth year. Reduce holdings.

After Tian Jiayi made a memo, Fang Hong continued: "Regarding Xiaofei's shareholding reduction regulations, after the three-year sales restriction period, the shareholding reduction in the first year shall not exceed 35% of its total shareholdings, and the reduction in the second year shall not exceed 35% of its total shareholdings." If the amount exceeds 25% of the remaining shareholdings, the shareholding reduction in the third year shall not exceed 15% of the remaining shareholdings, and the shareholdings cannot be reduced freely until after the fourth year.”

The regulations on shareholding reduction are roughly the same as those of Dafei. The difference is that the proportion is different and the time limit is one year less than that of Dafei.

Listing on the SGX must not give issuers the feeling that they can reduce their holdings as long as they can be listed. Otherwise, all their thoughts will be on reducing their holdings and selling the company, and they will not be able to think about running the company well. The market will not let you raise funds. You are here to sell the company.

Fang Hong added: "In addition, there is one additional item regarding delisting. If a company is forced to delist if it does not meet the conditions after listing, then the directors, promoters and all companies established by the listed company will be delisted from the date of delisting. Within the next five years, the company will not be allowed to directly or indirectly enter the SGX market or apply for re-listing."

Since you have been eliminated, you have been eliminated by the market, and you have to make way for others, because the market's resources are limited and you have been given the opportunity. If you have not taken advantage of it, you can only use the limited resources. Give it to others, but that doesn't mean there's no chance at all. Just wait in line for five years.

In addition to restrictions on the size of listed companies, institutional investor Fang Hong also has to impose further restrictions. Regardless of factors such as professionalism, capital scale, information acquisition channels, etc., large funds and institutions will impose strict restrictions on small and medium-sized investors, especially retail investors. It's a crushing gap.

Institutions can obtain information faster than retail investors, and information from retail investors will always lag behind institutions. The essence of the capital market is actually to eat the information gap and use the information gap to cause dimensionality reduction blows to opponents.

Therefore, restricting large funds and institutions is to eliminate this information gap. Of course, Fang Hong knows that it is impossible to absolutely eliminate the information gap, but it can be made up for by formulating game rules that favor the weak party.

It is the same as the balance adjustment of e-sports games, and there are only two ideas for adjustment, either to weaken the strong hero units, or to strengthen the weak hero units.

There is no doubt that in the capital market, large funds and institutions are definitely in a strong position, while small and medium investors and retail investors are definitely in a weak position. Fang Hong's thinking is also very clear: the weak side maintains the status quo and unilaterally weakens the strong side, which is equivalent to strengthening the weak side.

At this moment, Fang Hong held his chin with one hand and said: "The trading of SGX will be adjusted as follows. Institutional investors will adopt the T+3 system, that is, they can only sell after three days of buying on the same day; individual investors will not adopt the existing T+1 system. Change, that is, if you buy it on the same day, you can sell it the next day.”

Tian Jiayi was stunned when he heard this: "Huh? Isn't this how Indu Capital Market plays? Oh, there are still some differences. Indo Stock Market has a T+3 system for institutional investors and a T+0 system for individual investors. .”

Fang Hong said with a smile: "Don't look at it. Even though Ah San is very clever and slutty most of the time, there is still something good in some places. It is not without merit. For example, you have something in the capital market. After ten years of work, there is something good." Old Niu, I don’t think it’s a problem to go another ten years.”

"Institutions T+3 and retail investors T+1. This trading mechanism can smooth the information gap between the two parties. What SGX needs to do is not to intervene in the market, but to formulate rules to eliminate this information gap as much as possible. Institutions can obtain information. It is faster than retail investors, but the operation is three days slower than retail investors. By the time institutions can operate, retail investors have almost obtained the information. At this time, both parties start the game again, and winning or losing is fair. In the final analysis, eliminating the information gap is for fairness and fairness. Still fair.”

Although Fang Hong found an idea from the third brother, he did not completely copy the third brother's gameplay. The T+0 system is indeed not suitable for domestic retail investors. It is not that Big A has never played T+0. It was short-lived in the 1990s. The T+0 mechanism has been implemented.

Moreover, Fang Hong, who has memories of his past life, also knows that the craziness of convertible bond varieties a few years later once again illustrates the incompatibility of T+0 in the domestic capital market. The convertible bond type is T+0, and there is no limit on whether you can buy it and sell it on the same day. Ups and downs, and because convertible bonds are not large in size, large institutions cannot participate. Basically, retail investors, hot money or small groups play in it. As a result, when the hype of convertible bonds is at its craziest, it can reach double or triple the price within a day. The amplitude can cut participants in half in one day.

Because of this, we cannot copy Third Brother's retail investors to implement T+0. Big A's investors also need a tightening curse, otherwise they will be wild horses running wild, and it will be crazy when they go crazy. T+1 is this tightening curse.

In addition, SGX also continues to maintain the ±10% price limit mechanism. Big A has adopted the T+1 and ±10% price limit mechanism for so many years, and investors have adapted to it, which can also allow new investors to better and faster The exchange operates smoothly.

Tian Jiayi thoughtfully said: "Will such restrictions on non-profit and institutional investors, large and small, lead to low stock trading activity and low market sentiment on the SGX? In addition, companies listed on the SGX may be more competitive than Less than expected…”

Fang Hong looked unconcerned: "As little as possible is right. The effect I want is to block many inferior issuers and investors. Instead of letting them in and then forcing them to delist or ban the market, it is better to eliminate them from the source. It can also save a lot of unnecessary waste of public resources.”

"Don't worry about the lack of trading activity and market sentiment. As long as you set the rules and strictly implement them, the funds will find a way out. You can make money here, but are you afraid that no one will support you? Your NSE 50 Index is ten With the bullish price rising year after year, are you afraid that no one will come?"

One thing that is certain is that those who really want to raise funds from the market to operate well and develop their enterprises will not violate these rules, and Fang Hong will also inject strong financing capabilities into the SGX through Qunxing Capital.

As long as you have real skills and your business has development prospects, you can successfully raise funds on the SGX, and it won't take too long, because the listing of the SGX follows the principle of easy access and strict control.

And for some companies that are determined to make money in the capital market, they will naturally resist because these rules are extremely unfriendly to them.

All in all, SGX welcomes issuers who really want to develop but are short of money, not money trappers; it welcomes long-term investors who seek to increase corporate value, rather than speculators who pursue bubbles.

…