Investors concerned about the recent hot spots 50 Q (1-20)
To further enhance the investors to the reform and development of capital market awareness and proper understanding of the concerns of the market and improve the standard of services to protect themselves and investors, foster healthy market ecological and investment culture, we speak in the early leadership of the Commission investors and investor protection bureau based on the responses, codified in the "near future investors concerned about the hot 50 Questions" for your reference.
1, how to play the role of capital markets in China to promote the transformation of economic development process, what the opportunities and challenges?
A: The capital market as an important platform to optimize the allocation of resources, to guide effective social savings into investment, promote industrial restructuring and upgrading an irreplaceable role. Experience of developed countries shows that capital markets in promoting national economic transformation and strategic emerging industries development, plays a key role. Over the past 30 years the world's four most important emerging industries - computers, communications, Internet and bio-pharmaceutical, are found through the capital market and promote the growth up, the future success requires a strong capital market support and promote China's economic transformation.
Accelerate the transformation of economic development requirements of China's capital market also facing unprecedented opportunities and challenges.
China's economic industrialization, urbanization, marketization information are in a period of rapid advance. This is both for capital market development has laid a solid foundation, but also on the securities and futures industry put a higher demand. China's capital market is very young, there are many immature place, but also full of exuberant vitality, has a most promising future.
Meanwhile, China's stock market in the real economy reflect the existence of many disjointed phenomenon, but from a long-term process, the two movements are basically the same, or can not explain why we in 20 years, be able to establish the scale ranked highest in the world stock, bond and futures markets.
As a latecomer in the emerging market economies, China's capital market is not perfect. The most outstanding performance has two aspects: First, the market volatility, especially over the past few years, the Shanghai Composite Index above the closing price at the end of example, in 2006 rose 130 percent in 2007, up 97% in 2008, down 65% in 2009 rebounded about 80%, the last two years the market has decreased significantly; Second, the market structure does not reflect the competitive prices, in many cases the contrary, it means that the efficiency of resource allocation is serious damage to the state, society and the interests of investors are adversely affected. These issues will be addressed through further reforms to capital market system, making the interaction of capital markets and the real economy more healthy and smooth.
2, how to treat the Government to reduce the economic growth target to 7%?
A: The "Twelfth Five-Year Plan" to determine the average annual growth rate of 7 percent, reducing the policy targets, in order to be able to more balanced terms. Most economists doubt that the international community will not, China will remain one of the most promising economies.
Over the past three decades, China's economy maintained a rapid growth, but the speed is not equal to all, structure and efficiency, environmental protection and security are equally important. From a global perspective, China's presence to accelerate industrial upgrading and transformation of the urgent need to develop methods. Moderate economic slowdown, is to implement the scientific concept of development, the results of the implementation of macro-control, is conducive to the sustained and healthy development.
3, it was said China's economic development is high dependence on foreign export-oriented economy by the external demand impact, how to treat this problem?
A: The country's dependence on foreign economy is usually a total trade / GDP and current balance of trade / GDP measured in 2011, total trade / GDP (12-month average exchange rate) was 50%, the current account balance / GDP 2.8%, respectively, down from 65% in 2006 and 10.1% in 2007 peak. Differences in exchange rates and GDP accounting aspects led to the so-called high dependence on foreign values, more than 50%, in fact, China is not more dependent on external economies than the United States and Japan.
Overall, China's economy is typical of a large economy, has a huge domestic market, the impact of the international environment is actually not as good as imagined so much. Despite the current international economic situation is complicated, so many domestic deep-seated problems and contradictions come out, but it can be solved step by step through the development.
4, how to properly treat the Shanghai index "decade zero stock" argument?
A: The Shanghai Composite Index values did ten years ago as the end of 2011, roughly 2200, but that does not mean investors of 10 years' earnings. The reason is that:
First, the stock is a stock that is the number of points, the number of returns is the interval that is traffic, not comparable. The Shanghai Composite Index from its inception in 1991, volatility, if you choose the highest point, an increase of 61.2 times, that does not mean the corresponding period to buy a stock earnings reach people so many times.
Second, there is a great composition and weight adjustment during the Shanghai index. As absolute comparable caliber, the cumulative increase over the past decade the stock was 28%, an average annual increase of 2.5%; plus dividends and other factors, the index of investment income was 40%, annualized investment rate of return of 3.4%.
Third, because the index is not comparable valuation of listed companies reflect the same index level is completely different. June 2001 average price-earnings ratio close to 60 times, and in December 2011, only about 13 times. As for the cash dividend income, it can not be compared, the total increase is now 12 times higher than a decade ago.
5, the reform and development achievements in recent years, China's securities market is huge, the international community has been generally recognized, but domestic investors has not been very satisfactory return, the fundamental cause of the problem lie?
A: China's stock market volatility of recent years is indeed great, rose after the big drop, the last two years, due to continued to fall, investors face large losses, especially small and medium investors generally do not make money. The reasons for this are complex, the most fundamental reason is that the current structure of China's capital market is also not reasonable, optimize the allocation of resources not fully functional, market discipline mechanism is not strong, the operation of the market system and mechanism are still many problem. For example, the issue of reform of the current market parties closely, dividends of listed companies and improve the delisting system, and the establishment of appropriate institutional investors are all very critical. "Hot IPO" IPO Market of the "three high", "small-cap stocks hype" and other phenomena associated with these arrangements and regulatory issues related to operational aspects of the system, these problems greatly damaged the interests of investors . In this regard, the regulatory authorities attach great importance to actively find solutions.
6, China as a high national savings rate, why firms find financing, investment opportunities residents also feel small?
A: As a high national savings rate, there is no shortage of funds on the whole country, but there are serious structural mismatch suited phenomenon.
On the one hand, residents, institutions and businesses feel the lack of a satisfactory financial investment channels, the bank more than 80 trillion yuan, few can beat inflation of financial products.
On the other hand, many have broad market prospects for R & D projects, innovative enterprises and individual entrepreneurs lack of timely and sufficient financial support, the financing difficulties of SMEs, large blue-chip company's stock price about 40% lower than the average.
This shows that the current financing structure is not balanced, the capital market mechanism is still not complete, demand-side and supply-side funding have yet to find an effective docking mechanism and channels, which is the next capital market reforms to gradually solve the problem.
7, China's financial system is mainly structural imbalance in what areas? Direct financing internal structural imbalances in what areas? Structural imbalances in the financial system what harm?
A: Imbalance of China's financial architecture mainly in three aspects: the proportion of direct financing is much lower than the indirect financing, financial institutions, asset size of the banking sector 92%, insurance and securities fund industry accounts for only about 8% of the risk of excessive focus on financial banking system; direct financing corporate credit bond market development is far lagging behind the development of the stock market, the enterprise has not formed a hard budget constraint; the stock market, a market valuation higher than the secondary market, the blue-chip valuations far below underperformance " higher prices for better quality is not. " The above situation has not been significantly improved, restricting the financial system defuse financial risks and improve the efficiency of capital allocation function of the play.
Direct financing itself, the structure is irrational. The proportion of stocks bonds imbalance, corporate credit debt balance of less than a quarter of the stock market. The bond market is still government bonds, financial bonds and other interest rate products, corporate credit bonds accounting for one fifth of the total debt stock. In the corporate debentures in the exchange market is seriously lagging behind, hosted the inter-bank market accounted for 97% of the size of the two markets have not yet fully realized interconnection.
Financial structural imbalance hazards mainly reflected in: there is an internal over-reliance on credit vulnerability of the financial system, the formation of systemic risks in certain circumstances; on the real economy, financial services inevitably inadequate, the "three rural" scientific and technological innovation-oriented enterprises, culture creative business financial services far less, more private capital investment more difficult and SME financing difficulties of great contradictions, which shows a side from serious financial repression phenomenon in economic life.
According to the World Economic Forum 2011--2012 years of the Global Competitiveness Report, China's comprehensive competitiveness ranked 26, the level of development of financial markets ranked 48th, the ease of financial services ranked 60.
The structure of the financial system imbalances are potential risk factors, China's financial market is immature, resulting in inefficient allocation of resources, limiting the functions of the financial system to play, preventing the stable operation of the market, we should pay attention to all sectors of society.
8, how to support the direct financing needs of the real economy?
A: The direct financing of stocks and bonds is a financing mechanism for the main financial instruments. The real economy is the foundation, is fundamental, "a hundred Yip Hing, financial Xing; hundred industry stability, financial stability." Meanwhile, the capital market as an important platform to optimize the allocation of resources, to guide effective social savings into investment, promote industrial restructuring and upgrading an irreplaceable role.
After 20 years of wind and rain, China has established a market capitalization ranks third in the world stock markets, a fifth in the world balance of the bond market, there is a futures market trading volume among the best. The ability to direct financing to support the real economy growing, strong impetus to the development of patterns and building an innovative country.
However, China still lags far behind the direct financing needs of the real economy development. The proportion of indirect financing is still too high, the proportion of bank assets in all financial institutions of more than 90% too much risk concentrated in banks. Many enterprises, especially innovative start-ups, early conditions difficult to get financial support from banks. Therefore, the need to continuously improve the scale and proportion of direct financing, to accelerate the construction of multi-level capital market system, provide differentiated financial services to different sizes, different types, different stages of growth companies. Not long ago, the State Council decision to support the small and micro enterprises listing and financing, GEM, OTC market and private placement bonds need to accelerate the pace.
9, China's stock market how to nurture and attract better growth prospects of the business?
A: The capital markets because of their risk and profit sharing features, easier to organize and mobilize resources for innovation and entrepreneurial activity, having a natural and cultural and creative industries to promote development of high-tech advantage. Experience of developed countries shows that capital markets in promoting national economic transformation and strategic emerging industries development, plays a key role.
Over the past 30 years the world's four most important emerging industries - computers, communications, Internet and bio-pharmaceutical, are found through the capital market and promote the growth up. In close connection with the US capital market and high-tech, science and technology to support its continued leadership. Internationally many people to believe that the high-tech industry in Europe behind the United States, not because of the backwardness of the European scientific and technological inventions, but because of venture capital and capital markets behind.
In the next step in the multi-level market system construction, architecture OTC market, OTC, private equity and other markets, the important consideration of knowledge and technology innovation-oriented enterprises, modern agricultural enterprises, small and micro enterprises characteristics, and make targeted institutional arrangements to effectively enhance the flexibility of China's capital market capability and inclusive, so that the different characteristics of innovative companies can get the support of the capital market in order to better promote the scientific and technological potential into practical productive forces. This is the key to China's future to get rid of the "middle income trap".
10, the next period of time, the Commission has focused on what kind of work?
A: The Commission identified three priorities:
First, to improve the market order of fair competition, protect the legitimate rights and interests of investors. Establish a fair competitive market order, improve relevant laws and regulations, improve the level of market integrity, and resolutely crack down on insider trading, as the guardian of good investors' legitimate rights and interests.
Second, to enhance the service of the real economy, especially its ability to weak link. The real economy is the foundation, the capital market as an important platform to optimize the allocation of resources, the need to constantly increase the size and the proportion of direct financing, to accelerate the construction of multi-level capital market system, and guide social savings into effective investment and promote industrial restructuring and upgrading.
Third, support for technological innovation and cultural progress. In the multi-level market system construction, architecture OTC market, counter trading, private equity and other markets, the important consideration of knowledge and technology innovation-oriented enterprises, modern agricultural enterprises, small and micro enterprises characteristics, and make targeted system arrangements for the different characteristics of innovative companies can get the support of the capital market in order to better promote the scientific and technological potential into practical productive forces.
The above aspects are fundamentally the same, because the investment and financing services, and in return, risk and return are inseparable whole.
11, accelerating capital market integrity of the building and work arrangements which intend to have?
A: The regulatory work, integrity and discipline are the two key words. The word integrity, honesty is the center of gravity, there are only honest letter; disciplinary word, is the focus ring, the ring only to be punishment. Therefore, since the end of last year, the Commission has published more than 30 cases of illegal securities and futures to the community, we have received good results. Meanwhile, the Commission intends to develop "Interim Measures on Management Integrity Surveillance securities and futures market," market players to strengthen supervision and restraint and act in good faith, that the current "approach (draft)" is open for comments.
In the future, insider trading, market manipulation, fraud, market, false disclosure and other illegal acts, the Commission still has to step up our efforts to find problems faster processing, it did not hesitate. On the other hand, the Commission also proposed to increase the added value of investigators. That is, the punishment is not an end, the key is to investigate cases through play warning.
Insider trading is a common problem faced by national market surveillance. Investigating insider trading cases, and the number of accounts involved in the body, widely distributed, especially to prove criminal who knows the inside information is very difficult to pass, check to spend a lot of manpower and time. Look from social attitudes, many people also believe that insider trading is not a crime, it is the same in other countries, such as Japan, 25 years ago, and only then as a crime of insider trading, people's vigilance is gradually increasing. In addition, the capital market is a national unified market, listed companies scattered around in the investigation of illegal acts convergence there are many difficulties, in addition to local protectionism factors, there is also a lack of professional law enforcement agency problems.
The SFC will continue to keep the pressure up, combine punishment, give full play to the existing comprehensive prevention and control system. In addition, some institutional arrangements may need to learn some effective practices abroad. For example, in some countries, settlement systems play in the process of investigation of insider trading a major role in the implementation of measures respondents accepted regulatory authorities, but neither confirm nor refute the allegations. This will not only improve the effectiveness of supervision, so that other investors damaged relatively quickly to obtain compensation, but also can produce enough disciplinary effect.
12. What are the main goals and tasks in 2012 is the development of securities and futures markets?
A: The "Twelfth Five-Year Plan" and the national financial work conference, has identified clear goals and tasks for the development of securities and futures markets. Development of multi-level capital market, cultivating professional investment institutions and intermediaries, expand opening up a number of areas are very important. 2012 to cancel about 40% of the administrative examination and approval projects, decentralization and some will merge. The most urgent task is to deepen the reform issue, improve the distribution, delisting, and bonus system.
13, how the current status of the domestic bond market construction? Management of the development of the bond market and promote the idea of what the program have?
A: At present, China's bond market is not unified management, debt risk control mechanisms are inadequate, fuzzy credit responsibility. Different ministries for approval, the biggest problem is to provide some kind of implicit endorsement or guarantee the long-term accumulation will continue to form a larger systemic risk.
The Commission is to develop implementation plans for SMEs private debt, municipal debt and agency debt also actively promote research into. In accordance with the requirements of the State Council, People's Bank, the Development and Reform Commission and the Commission initially established inter-ministerial coordination mechanism for the company's credit class bonds. At this stage, the Commission efforts to promote the bond market rules and norms of the "five unification": unified access, disclosure standards, credit rating requirements, appropriate institutional investors and investor protection system, on this basis, to further promote the field inside, the OTC market interoperability, gradually building standardized and unified bond market.
14, the bond market where a breakthrough product innovation, which can launch a new product?
A: The bond market needs to further increase innovation. For example, the development of high-yield bonds, the bond market are designed to remedy gaps in the system, and better meet the diversified investment and financing needs of society.
The Commission is studying the launch of the SME private debt. As a kind of corporate debt, which includes the market demand for high-yield bonds, but not limited to high-yield debt. Issuing such bonds comply with the law, but also help to improve the small micro-enterprise financing tools and approaches.
The SFC has local governments, enterprises and intermediary agencies bonds made a preliminary investigation, is working out related programs. Furthermore, as municipal bonds, agency debt, but also conducive to the promotion of urban infrastructure, help to improve the transparency of local government debt, bank risk dispersion. Regulators will carefully study and actively create conditions to promote the development of these two types of bond products.
Treasury futures after a long careful preparation, implementation is expected to launch in the near future. Treasury futures market interest rates for financial institutions hedge risks and resolve market has special significance. With the rise of China's economy, the commodity futures market is also usher in a prosperous spring.
15, IPO reform of the Commission on the Protection of small investors do what arrangements?
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.
16, where the danger of new shares at high prices? How to improve the IPO pricing mechanism inhibition "three high" hype of new shares and other phenomena?
A: The consequences of new shares at high prices caused by poor market ecology, but also bring a waste of resources, poisoning the social atmosphere, contributing to fraud and illegal activities, but also from the most basic level distort the market structure, determine the future of the stock continued to decline trend, The so-called "long cattle short bear" has become inevitable. This causes rare in the world of high-priced issue very complex phenomenon, there are institutional issues, there are a variety of factors regulatory issues, as well as social, cultural, investment habits, market psychology, etc., must be balanced, comprehensive way. Enhanced focus from the buyer pricing constraints, increased pricing underwriter responsibility, improve stock liquidity, strengthening the pricing behavior of supervision, improve the pricing mechanism, inhibiting the "three high" hype of new shares and so on.
Deepening reforms of the system distribution market is a priority task in early national financial work conference deployment. In the long term, we must continue to strengthen the quality of information disclosure, strengthen social supervision, improve the legal environment, and vigorously the introduction of institutional investors. Release from the regulatory point of view, in order to focus more on information disclosure as the center, and constantly improve the quality of financial reporting, inhibit packaging and cosmetic results. April 28, the Commission issued the "Guiding Opinions on Further Deepening the reform IPO," clearly issued to further promote information disclosure system construction as the center, strengthen the authenticity of information disclosure, accuracy, adequacy and completeness , the whole process, multi-angle to enhance the quality of information disclosure.
17, whether the IPO reform will be canceled and the audit system to registration system?
A: The implementation of the audit system or registration system, the core is not a problem. The key is how to define the government regulatory agencies, duties and obligations of the Exchange platforms and other market intermediaries, how to ensure that enterprises can complete, accurate and full disclosure of relevant information. Registration System in those markets than some of the review to be much more serious, much thinner.
The Commission should conduct compliance review, issuers, intermediaries and investors should homing diligence. Recently, the focus from the Commission to enhance buyer pricing constraints, increased pricing underwriter responsibility, improve stock liquidity, strengthening the pricing behavior of supervision, improve the pricing mechanism, inhibiting the "three high" hype of new shares and so on.
18, why the good performance of listed companies do not pay dividends? After ex-dividend can not do?
A: SFC supervision and restraint system dividends of listed companies, and attaches great importance to guide the return to shareholders of listed company matters, in recent years, dividends of listed companies consciousness gradually increased, the intensity of feedback investors also increased year by year, and achieved certain results.
However, due to historical reasons, the capital constraint mechanism and return on investment is still relatively weak, some of the dividends of listed companies is not too strong willingness to take the initiative to return to shareholders of consciousness was not enough, mainly as follows: First, the dividend payout ratio is low overall. 2001-2011 cash dividends of listed companies accounted for net profit ratio of only 25.3%, while international mature markets, the ratio is usually around 40%. Second, in the form of dividend distribution of cash dividends light. Three years before the company listed on the amount of cash dividends accounted for net profit ratio was 41.69%, 35.85% and 30.09%. It expects 2011 annual cash dividend rate will increase. Third, a significant number of companies did not disclose in detail the specific reasons not to cash dividends. These have an adverse impact on the listed company's overall image, but also affect the atmosphere of confidence in the market and investors.
But it should be noted that, "Company Law" provisions of the distribution of profits of listed companies belonging to the company autonomous decision-making matters, the board of directors and shareholders will have the right to decide whether dividends. Therefore, the regulatory authorities in full respect of listed companies on the basis of their own decisions, encourage and guide the listed companies to establish continuous, clear and transparent decision-making mechanism and dividend policy. Specific measures include: requiring companies to do initial public offering of shares in the prospectus related to information disclosure of profit distribution; clarify the position and attitude of the independent directors and external supervisors; guide listed companies expressly shareholder return plan; reduce dividends of listed companies and related operating costs; cash dividends of listed companies to strengthen decision-making, implementation and supervision of information disclosure and so on. I believe that these initiatives will play a positive role.
Prices ex dividend formed, just as the ex-dividend day the stock opening reference price, if the majority of people are optimistic about the stock, representing an ex-order price prices, the actual opening price generated by the auction will be higher than ex-rights price, and vice versa on the contrary. Thus, the price of the ex-dividend price is not necessarily the investor trading, it will not affect the returns to investors. Dividend tax on the issue, the Commission has been very concerned to adapt to market changes, the company is actively coordinating reduce operating costs associated with the dividend increase returns to shareholders.
19, how to promote and implement the bonus system of listed companies?
A: According to the "Company Law" provides that a listed company's profit distribution company belonging to autonomous decision-making matters, the board of directors and shareholders will have the right to decide whether dividends. Regulatory authorities will fully respect the listed companies on the basis of their own decisions, encourage and guide the listed companies to establish continuous, clear and transparent decision-making mechanism and dividend policy. Specific measures include: requiring companies to do initial public offering of shares in the prospectus related to information disclosure of profit distribution; clarify the position and attitude of the independent directors and external supervisors; guide listed companies expressly shareholder return plan; decrease associated with the operation of the listed company dividends costs; cash dividends of listed companies to strengthen decision-making, implementation and supervision of information disclosure and so on. I believe that these initiatives will play a positive role.
Cumulative net profit is positive but not dividends the company, the CSRC agencies have conducted a preliminary investigation, to urge the company to fully disclose the specific reasons for its non-dividend, unallocated purpose funds and projected income, actual income and Estimated earnings are not consistent reason other information. The proportion of failure to promise dividends, dividends long-term obligations of the company to fulfill regulatory constraints to strengthen and help enterprises to firmly establish the concept of return to shareholders, continue to promote the enterprises to improve their corporate governance.
20, delisting system and rational investment kind of relationship? Delisting will bring to market what kind of impact? Delisted, it will result in the investor's investment make sense?
A: The study delisting system introduced value of the investment will help to form a correct investment philosophy of rational investment, long-term investments. For a long time, some investors are keen to stir up the difference between the company and the performance of the so-called "shell", its root, in addition to investors, "flourishes" the idea and investment behavior blindly follow the trend, mainly due to China's securities market some of the poor performance of the company continues to interpretation of "Phoenix," the legend, a large number of ST segment of the listed companies in the fourth quarter operating profit through the disposal of assets, debt restructuring and government subsidies and other means to circumvent the existing delisting system. This situation contributed to the irrational investment behavior of investors, that the company year after year despite the huge loss will not withdraw from the market, thereby gamble backdoor restructuring to reap huge profits. Investors made it clear that at the meeting, did not withdraw from the market, speculation is difficult to change the atmosphere. Therefore, the implementation of strict delisting system, will help guide rational investors, value investing, a healthy investment culture and atmosphere. Delisting system as capital markets, "purification", to promote the market to play a survival of the fittest, optimization structure of listed companies in the competition, protect the interests of small investors from the source. Power of No pressure there would be no way forward, into the market is not safe, eliminated the need for strict management system and urge careful management company, and continuously forge ahead, in an invincible position in the market. Investor confidence also requires excellent management team, has the potential to boost the listed companies. In the long term, contribute to a market delisting system renewal and homeostasis, helping the overall quality of listed companies continues to improve, thereby protecting the interests of small investors from the source.
Delisting system in the development process will take full account of the protection of legitimate rights and interests of investors, especially small investors, but not understood as irrational investment behavior "pay." Delisting system in the study of the development process, the Commission will consider in the design of the system-level protection of investors. Currently the Shanghai Stock Exchange and the Shenzhen Stock Exchange, respectively, to develop a "scheme (draft) on perfecting the Shanghai Stock Exchange listed companies delisting system" and "programs on improving and perfecting the motherboard, the SME board listed companies delisting system (draft ) ", is open for comments.
At the same time, investors have a clear understanding of investment underperformance, we should establish a "caveat emptor" awareness, training to control the overall risk asset stop consciousness. When a public company under the premise because macroeconomic factors, industry factors, management factors lead to delisting, a listed company in accordance with the law fulfilled its disclosure obligations, and investors bear the investment result of the judgment, look forward to irrational investment behavior by the state foot the bill is impractical.