Bursts of four gold medals and a half months, said the stock market serious deviation from fundamentals

Since July 2, issued on the stock market communications,发文to comment on the stock market again today, 16 days, bursts of four gold medals. Today released this comment that: from China's current overall economic conditions, the performance of the stock market this is not normal, the valuation levels have seriously deviated from the macroeconomic fundamentals.

This year, more than half Shangzhengzongzhi down, the Shanghai stock market dropped to an average of 20 times the price-earnings ratio, lower than the historical average. Shanghai and Shenzhen 300 index of shares by the end of June samples weighted average price-earnings ratio of only 15.8 times that of the United States than the Standard & Poor's 500 index was 17.4 times the past 50 years, the average price-earnings ratio is even lower.

From China's current overall economic conditions, the performance of the stock market this is not normal, the valuation levels have seriously deviated from the macroeconomic fundamentals.

It should be noted that although the Chinese economy is facing many difficulties and challenges, but is still in the expected direction of macro-control operation. National Bureau of Statistics data show that the first half of the national economy has maintained double-digit growth, reaching 10.4 percent, are of concern to the consumer price index in June to fall back to 7.1 percent.

Goldman Sachs report also stressed that in the foreseeable future, China and in developing countries than in developed countries will continue to be the most rapidly growing one of the countries, China is still a few global investors may continue to seek long-term growth opportunities for the region One.

In this encouraging data before, A-share market is out of the first half completely deviated from the losing streak, and many listed companies shares were seriously underestimated, and the capital market price discovery seems to be the basic functions of failure, these phenomena is really puzzling.

Interpretation of the market can not simply engage in such a performance, we must put non-tradable share reform after the full circulation of the context of consideration.

In the beginning of China's capital market development, as split share structure problem of the existence of two-thirds of the shares of listed companies can not flow, the market pricing be out of the question, do not reflect the actual value of the stock market is a result of The long-term downturn.

In recent years, non-tradable share reform and other measures to steadily promote the reform of the background, China's capital market has undergone profound changes, enterprises from the previous price and the market value of indifference to the present efforts to improve operating performance, and enhance market shares. Capital market price discovery function gradually increase. As an enterprise value of re-found the platform, China's capital market is playing an increasingly important role of macroeconomic and gradually showing a "barometer" of the role.

However, the full circulation environment on the one hand so that the price of the stock market found an increasingly prominent feature, on the other hand has also brought tremendous changes in the structure of the market. Old faces collapse of the valuation standards, the new valuation criteria to be established. In the new and old system of conflict, the original stock valuation model of failure, causing disorder in stock prices. From the A-share market performance, this year, the valuation in the market to find new coordinates the process, a number of shares of listed companies have emerged over-reaction to a sharp decline in the low-priced unbelievable. In such a valuation of the old system was completely destroyed and at the same time hasten the birth of the new valuation system in the process of rebuilding, A stock market investors Game two sides gradually retail and institutional investors from the confrontation, change, mainly the lifting of the ban - Shareholders and outstanding shares of common stock shareholders of the game. Substantial deviation from the value of the phenomenon of prices to pour in, this, like the first half as the stock market continued to fall in almost inevitable.

In fact, price discovery is the most basic function of the capital market, the achievement of the investment and financing, the allocation of resources, and so many other functions of the premise. Because the value of any economic factors need to gain market recognition, and in the market determine their reasonable prices. On this basis, we can expect in the short term after the disturbance, with the new balance of the established price, should reflect the true value of a reasonable valuation system will be gradually taking shape. In such a valuation system, the fundamentals of listed companies whose securities they will be real asset prices Niuer, the concept of themes from the Wu Chao withdraw from the market, the value of investment securities investment return to a reality, this is all Chinese investors By dreams of.

The international capital markets practice has proven that the size of the market is, the better liquidity, institutional investors more mature, and the capital market price discovery function of the more full play, the more assets can be more reasonable prices.

As China's economy to further integrate into the global economic cycle, asset pricing power and mechanisms will be directly related to the pricing of assets in China the right to speak, a direct impact on Chinese enterprises in international competitiveness. The future, as China's capital market system based on the gradual building of a sound, multi-level capital market system building, to further improve the structure of investors, China's stock market price discovery function will play a more fully the role of the stock market will also run with The more healthy and smooth.

Any volatility in the market actually can be described as a price discovery process. This decision of the capital market to function in a short period of time may sometimes malfunction, but the long-term vision to look to capital markets, you will find: no matter how difficult, price discovery will occur its due role in the price Will eventually return to the value. This is the eternal charm of the capital market.