Investor Protection Bureau users answers to questions (c)
I. Q: Since last year, the Commission launched a new round of IPO reform this year, April 28, on the basis of openly soliciting public views on the release of the "Guiding Opinions on Further Deepening the reform IPO." Will the IPO reform of the Commission on the Protection of small investors do what arrangements? (User IP: 125.39.39 ★.)
A: The protection of investors legitimate rights and interests of the capital markets is a core principle of the rule-making system, it has been fully reflected in the IPO reform. April 28, the Commission issued the "Guiding Opinions on Further Deepening the reform IPO", focused on improving information disclosure and market discipline, the core purpose is to promote the IPO prices reflect the true value of the company to achieve a coordinated secondary market healthy growth. Specifically made the following arrangements: First, to further promote the release of information disclosure system construction as the center, strengthen the authenticity of information disclosure, accuracy, adequacy and completeness of the whole process, multi-angle to enhance the quality of information disclosure. Secondly, the issue of clear and responsible agencies, etc. inquiry objects, increase penalties for illegal activities are all directly focused on the protection of investors, especially investors' legitimate rights and interests of public measures. Third, the combination of the structural characteristics of the market investors increase the allotment proportion, while clearly a callback request to the online network, reflecting the will of the importance of small and medium investors to participate in new shares, taking into account the market continue to regulate and promote actively protect investors' legitimate rights and interests. Fourth, the introduction of an independent third party of information disclosure of listed companies to conduct risk assessment, aimed at small and medium investors to provide reference during IPO, to help small investors more accurate and profound judgment of the issuer's risk.
Second, ask: As more and more domestic and overseas companies listed in Hong Kong, B-share market is gradually being marginalized, almost lost financing function, B-share market, the future is unknown, the regulatory authorities can come up with a clear B shares as soon as possible solutions to effectively protect the interests of investors B shares? (B-share investors IP: 183.60.196 ★.)
Answer: B shares are domestically listed foreign shares short, was introduced in the specific historical conditions for a class of shares. For historical issues, the Commission will take a responsible, non-evasive attitude to seriously study and propose solutions.
Third, Q: Recently, the Commission approved a number of new QFII investment in the stock market, many of them foreign pension plans, and we continue to promote local pension funds into the stock market and bank financing, but why not delay action? (User IP: 221.192.149 ★.)
A: From the outside the situation, the pension is the most common institutional investors, many pension assets entrusted to its mutual funds, hedge funds and other asset managers to invest in European countries where a higher commission pension investment ratio, 2010 40% of pension fund assets in the United States together. These pension funds have investments in the operation of high professional level, the ability to hedge is relatively strong, mature markets are the backbone of stable development.
Overseas investment in China's capital market, pension also has a strong interest, many overseas pension system has invested through QFII China's capital market, one direct application for QFII status, there are Quebec Savings Investment Group, the Ontario Teachers Pension, Canada Pension Plan, family doctor pension fund, the National pension corporation (South Korea), Hong Kong hospital Authority Provident Fund Scheme and other six foreign pension eligibility and to obtain QFII investment quota of $ 750 million; the second is investment in domestic funds and other products distributed through the purchase of the QFII, indirect investment in China's capital market.
Therefore, whether from the operational needs of the pension, or the capital market stability and healthy development goals, the need to actively cultivate institutional investors, including pension. Currently, we are exploring measures to pension funds and other long-term tax relief and other aspects of the market and the authorities. Of course, the pension market does not represent a full one hundred percent vote share, different combinations, different funds, investment requirements are not the same as the direction of investment also includes treasury bonds, financial bonds, corporate bonds, etc., but also includes financial products combined deposits, cash and so on.
On the introduction of bank financial products, the relevant departments are studying, the key is to fully disclose the risks and allow investors to choose their own judgment.
Fourth, ask: investors face false statements, insider trading and market manipulation and other securities violations, the civil action for damages costly, time-consuming long, very hard to ensure equity, which measures will be taken to promote the settlement of the Commission? (User IP: 125.39.39 ★.)
A: Investors seek compensation through securities CIVIL LAWSUIT, not only the existence of substantive legal norms lack of problems, but also encountered many obstacles litigation procedures. The Commission attaches great importance to this issue, continue to strengthen top-level design work to protect the interests of investors, while continuing to work closely with the Supreme Court, the burden of proof inversion explore other systems innovation, and actively promote the introduction of relevant judicial interpretations, to further smooth channels for civil action for damages. On the other hand will be strengthened to protect investors' legitimate rights and interests as the starting point of the "Securities Act" for further evaluation, and promote legislative branch start the "Securities Act" revision, in accordance with the refinement of the legislative model, establish a sound system of civil responsibility, etc., enhance legal suability itself, sufficient investor protection and effective exercise of rights.
V. Q: CIVIL LAWSUIT securities, our ability to learn from the American experience, the introduction of class action? (User IP: 21.67.89 ★.)
A: My securities tort civil action for damages, is indeed facing the high cost of litigation, evidence is difficult to obtain, the claimant practical difficulties and low efficiency, so that the medium and small investors to use litigation to defend their rights are not enthusiastic. Perfecting Securities Commission from civil action mechanism, reduce the cost of investor rights objective, and actively learn from foreign judicial practice of various securities tort litigation model commonly used, including class actions, including, where learning proven useful to explore established in the field of securities and futures, trial public interest litigation system, promote amend the Civil Procedure law, and constantly improve investor rights relief mechanism.
Six Q: capital market investment less variety, not much innovation, and foreign financial products is very large, the Commission in the development of diversified investment and financing tools, rich financial derivatives to provide investors with more investment channels for the general aspects of what consider? (User IP: 61.78.90 ★.)
A: With the economic globalization and the rapid growth of financial assets as a financing tool and an important risk management tool, the bond market, derivatives and other mature markets in foreign countries has developed over the years. And relative terms, the basis of our product market is not high, strict regulations, lack of innovation, financial risk management, demand is not strong, monotonous product, and does not match the development of the national economy, increasing the value of financial assets investors lack of investment channels, income assets is difficult to obtain directly from the national economic growth, the share of economic growth.
As an important part of capital market reform, under the premise of proper risk management and control, the Commission efforts to improve the proportion of direct financing, optimize the financial structure, and actively develop diversified investment and financing tools, steadily futures, options and derivatives products market development, to meet the diversified investment and financing needs, to better serve the real economy. Progressive research-driven fixed-income SME private debt, local debt, agency bonds, municipal bonds and other financial product innovation, while accelerating the bond market to achieve interoperability. Actively study the stock, fund new varieties related to explore mergers and acquisitions, asset securitization and innovative financial instruments such as futures and options. Through a series of work, the Commission will establish a market-oriented mechanism breed innovation, constantly enrich the product market investment and financing system, on the one hand to better serve small and medium enterprises and innovation and entrepreneurial activity, on the other hand, different risk for investors the capacity to provide appropriate products and more investment channels.
Seven Q: Treasury futures have serious problems in history, why the recovery bond futures? There is no way to control investment risk? (User IP: 59.175.131 ★.)
A: The 1995 "327" bond futures risk event is our event occurs in a particular socio-economic development period, largely due to the interest rate market mechanism has not yet started, treasury stock markets are underdeveloped, poorly designed contracts, lack of relevant laws and regulations, etc. factors. At present, with the deepening of reform and development of the financial market continues to advance and futures markets, the level of market interest rates rising national debt and the spot market is expanding steadily, futures laws and regulations has improved steadily and continuously improve the level of regulation, market participants also broader and more rational, launched T-bond futures basic conditions mature. "327" event scale circulation of T-bond spot market but 100 billion, while circulation at the end of 2011 bond spot size of 6.4 trillion, or 64 times that year. Currently, the Treasury market price formation mechanism has been initially established, the "Exchange Management Regulations" as the core of the futures regulatory system has been established and maturing.
According to the characteristics and laws of bond futures risk control and market supervision, supervision departments to develop a series of rigorous risk management system and appropriate regime for investors on bond futures research. Currently, the gold in the treasury bond futures contracts, rules and specific risk control measures are working on the demonstration process. In this process, we will listen to opinions and suggestions of investors, and to be tested and perfected through simulation trading. SFC will do a good job with the relevant units of the preparatory work of the Treasury futures market, bond futures to ensure a smooth launch and safe operation.
Eight Q: Why should the Commission launched the SME private debt? It's junk bonds and foreign What is the difference? (User IP: 121.14.234 ★.)
A: The foreign junk bonds, also known as high-yield bonds, are not legal concepts or specific securities varieties, but the risk, the results of market revenue options. US high-yield bonds is the most mature countries, which generally refers to high-yield debt credit rating below investment grade, high yield 400-500 basis points over the same period of debenture bonds. In general, small and medium micro enterprises is relatively large fluctuations in operating results, fewer assets available for collateral, the credit rating of bonds issued may be lower, supported by higher interest costs, in line with characteristics of high-yield bonds; but if the hair debt of small and medium micro-enterprise financial condition or use of guarantees, mortgages and other credit enhancement mode, its bond credit rating is not necessarily low, bond interest level may not be high.
At present, our small and medium micro enterprise financing is more prevalent, the urgent need to enrich small micro-enterprise financing. In view of this situation, I will be based on strengthening small micro-enterprise financial services, research launched the SME private placement bonds. As a kind of corporate bonds, non-listed small and medium micro non-public issuance of bonds purpose is not focused on "high-yield, high-risk" in the form of features, will introduce a variety of ways to increase trust and strengthen the choice of enterprises, enhance credit and Investors work of management, on the one hand to make up for the bond market gaps in the system, to better serve the real economy, on the other hand for qualified investors with innovative investment channels.
IX Q: Overseas ETF product range, the SFC what to consider in terms of cross-border ETF product launch? (User IP: 156.180.58 ★.)
A: As an important carrier index of investment, ETF has become the most important individual and institutional investors asset allocation tool, the past two decades is the fastest growing fund products internationally. Cross-border ETF work includes two parts: First Release track overseas indices within ETF. We have international experience overseas cross-border ETF, the issues related to mode selection, operation mechanism, risk control, in-depth study, presented in the framework of the launch QDII to invest in overseas index, in the territory of the cross-border exchange-listed ETF programs . According to the "Mainland and Hong Kong Closer Economic Partnership Arrangement" (CEPA), the Commission recently has been actively promoting Hong Kong stocks ETF preparatory work, now the preparatory work has been basically completed. The second is to promote the overseas tracking A-share Index ETF development. Currently, the Commission is working with relevant departments to promote the launch of the Hong Kong Stock Exchange listed A shares RQFII ETF products under the framework. Through the coordinated development of two types of cross-border ETF, improve the two-way cross-border capital, orderly and balanced flow mechanism to promote the sound development of the A-share market.
X. Q: The Commission has been encouraging the value of the investment, to promote blue-chip concern, but the current market conditions, the majority of long-term blue-chip stock does not move, how we should view and select blue chips? (User IP: 60.16910 ★.)
A: The Commission encourages the value of the investment is based on long-term high valuation of the stock market, the average price-earnings ratio often reached several times, but now has been reduced to historically low levels, with the main international market is quite basic, with a long-term investment value, advocating rational investment experience relatively good time. Advocate for blue-chip is essentially advocating rational investment, value investing philosophy. Underperformance uncertainty stronger, only more experienced investor is suitable for riskier investment options.
He said blue-chip stock market is where the real value is mainly integrated the following several considerations:
First, from the blue-chip for its own characteristics: First, the blue-chip company has a long history, has a high reputation and good credit, competitive products, generally have relatively stable profitability, can better withstand cyclical fluctuations, while dividend policy stability, a high dividend yield. Second, the blue-chip represents the economic structure and industrial structure changes in direction, grasp the pulse of the times. Such as the Dow Jones Industrial Index constituent stocks of the world's oldest blue-chip stocks, the total change in the structure of its constituent stocks index reflects the changes of the structure of the US economy. Third, large-cap blue-chip companies with large float caps features, making it relatively easy to be manipulated share trading.
Second, from the performance point of view: By the end of April 2012, all 938 Shanghai-listed companies to disclose the 2011 annual report, in which SSE 180 Index constituent stocks of the total assets at the end of 2011, total net assets accounted for Listed Companies in Shanghai 93.3% and 82%. In 2011 total operating income of 133,539.71 yuan, net profit of 14,650.08 yuan, accounting for 74.9% and 89.2% of all the listed company's total revenue and net profit, respectively, operating income and net profit growth of 22.8% and 15.0% higher than in 2010, not only its performance is higher than the Shanghai stock market average, and the overall economic slowdown in 2011 in the environment, its earnings growth is still higher than the overall level of Shanghai Stock Exchange.
Third, from dividends situation: SSE 180 Index constituent stocks, a total of 145 listed companies reported profit distribution plan, of which 143 companies pay cash dividends Proposed now totaled 4,086.26 billion yuan, accounting for 180 constituent 2011 28% of the total net profit. Among them, the 2011 cash dividend in the amount of over 10 billion yuan of six companies, namely ICBC, China Construction Bank, Bank of China, Agricultural Bank of China Petroleum, China Shenhua, accounting for 34% of net profit, respectively, 35%, 35% , 35%, 23%, 40%. It provides a stable dividend income characteristics similar to bonds, can provide a more stable cash flow for investors.
Fourth, from the point of view of corporate governance: over 180 Index constituent stocks, for example, the majority of listed companies in corporate governance, standardized operational performance is better, integrity and excellent management team, and regulate the operation of the company, the company is to achieve sustained steady and rapid development, the cornerstone to achieve maximize shareholder value.
In addition, according to the Commission's monitoring of the general rise in blue chips in the first quarter, non-blue chips were generally down, change in position between the difference of nearly 12 percentage points, indicating that the value of the investment philosophy is returning.
Commission advocates blue chip investment, actually advocated investment philosophy, not simply for that one stock. Factors affecting the stock price movement there are many blue-chip concept, the scope is not static. Therefore, can not understand the implications of mechanical blue-chip investment, the face of numerous and varied market, investors need to grasp the principles of rationality, the value of the investment, combined with the market situation, expectations and their own situation, after selecting a specific analysis.
At the same time, the Commission is accelerating the construction of the relevant system, urging listed companies to establish a reasonable and sustainable profit-sharing mechanism, to promote long-term funds into the market pace, creating a favorable environment for value investing, get returns for investors to provide basic protection. We recommend investors stick to the bigger picture, uphold calm heart, to establish their value investment philosophy, to find valuable blue chips.