God-level Trader of Rebirth

Chapter 462 Turn off the faucet

"Chen Jie, what did you just say? Suspend the IPO?"

Shang Fulin thought he had heard wrongly, so he turned to Chen Jie to confirm.

The purpose of the China Securities Regulatory Commission is to solve the financing difficulties of listed companies, rather than to provide a platform for retail investors to make money.

If the IPO is suspended because of the stock market drop, will their work still be carried out?

In the conference room, the agency representatives who had been preparing to leave the meeting immediately cheered up after hearing the conversation between the two people, and they all focused their attention on Chen Jie.

"That's right! Our stock market has fallen from [-] points to now. The index has been completely cut in half, and the trading volume has also shrunk significantly. In this extremely harsh investment environment, new stocks are still being listed, and every time a new stock is listed, It is extracting liquidity from the market, which is very detrimental to the restoration of market confidence and will only create a vicious cycle, causing the stock market to continue to fall and never bottom out."

"Therefore, I personally propose that in addition to reducing stamp duty, all new share issuances should be suspended when the market is below 5000 points to show the government's confidence and determination to boost the stock market!"

Chen Jie spoke impassionedly, and despite the livid expressions on some people's faces, he revealed all his thoughts during this period.

With his current status, he doesn't need to worry about offending anyone.

Although the stock market plummeted mainly due to the outbreak of the global financial crisis, the decline of A-shares was simply a roller coaster and clearly exceeded the scope of normal adjustment.

Otherwise, there would be no talk of "bailout" now.

Judging from the trend of A-shares this year, A-shares are obviously sick, and the illness is not serious.

The main reasons for this problem are "lack of funds" and "lack of confidence."

Among them, the root cause of "lack of funds" lies in IPO issuance.

The listing of new stocks draws out existing funds, and most of the existing funds are trapped and forced to lie flat, so the stock market cannot rise at all. Even if investors want to go long, they are powerless.

A healthy financial market has the ability to repair itself.

But the premise of all this is not to let it continue to "bleed".

"Chen Jie, your proposal is theoretically feasible, but according to your point of view, the IPO can only be restarted when the market rises back above 5000 points. Is this benchmark too high?"

"Can you take a step back, for example, lower it to four thousand points? Is it more appropriate?"

Li Jiange glanced at the faces of those who witnessed the supervision committee, and they all looked unhappy. He could only laugh and bargain with Chen Jie with a smile.

He can sit in the position of chairman of CICC, so he cannot be an ordinary person.

Who here doesn’t know about these old problems of A-shares?

Intellectually, at the current stage of the market, he agrees with Chen Jie's proposal, but the reality is not that simple at all.

Take CICC as an example. The most stable source of income is not client transaction commissions, but investment banking business.

Each securities company has an investment banking department that specializes in helping companies with financing and listing, underwriting and sponsorship, and mergers and acquisitions, from which the securities company charges corresponding fees.

However, investment banking projects have long project cycles, heavy workloads, and high risks, and the teams of small and medium-sized securities firms cannot produce one project in a year.

Therefore, the investment banking business of the entire stock market is basically taken over by leading brokerages like them.

Those who are qualified to attend the meeting today are basically the country's leading securities firms. You don't need to vote to know that the vast majority of people will oppose the suspension of IPOs.

Besides, since the establishment of the Huaxia Stock Market, it is not that there has been no precedent for suspending IPOs, but that was only done as a last resort when the market was in extreme danger.

Although the market index has been cut in half now, it has not yet reached the point of imminent urgency.

If you play your cards right at the beginning, how will you solve problems if they arise later?This is neither in line with our national conditions nor in line with the common interests of most people.

At this moment, even Wang Guobin and several other brokerage representatives who had good personal relationships with him began to persuade Chen Jie, hoping that his requirements would not be so harsh and would be more feasible.

However, Chen Jie still insisted on his "tough" view, believing that the IPO must be suspended first before the stock market can be saved.

Shang Fulin had no choice but to initiate a symbolic vote in order to show fairness and justice.

After a round of voting by show of hands.

The final result came out, 22 to six.

Including Chen Jie, there are only six institutions in total that agree with this proposal. They are basically medium-sized securities firms with little investment banking business.

Suspending IPOs will have little impact on them.

No one is surprised by this result.

Shang Fulin looked around at everyone's expressions, and he had a rough idea, and then he smiled at Chen Jie and said, "Chen Jie, I know you are eager for the market to get better, but with the stock market falling like this, IPO is not the main reason. Problem."

“Didn’t your Infinity Fund allow customers to redeem a large number of shares last year?”

"If you can take the lead in self-purchase at this time, I believe that restoring investor confidence will definitely have an immediate effect."

Shang Fulin's words were immediately recognized by most institutions.

Last year, the market rose to more than 4000 points, and the stock market was booming. However, Infinity Fund suddenly used "market structural risks" to notify customers through phone calls, text messages, etc. to redeem the purchased funds as soon as possible.

I don’t even want to earn management fees.

This abnormal operation caused quite a bit of controversy at the time.

Many people also believed that the market had peaked.

However, as the market index continued to surge and reached new highs, people gradually relaxed their vigilance against risks.

Looking back now, they realize that the Infinity Fund retreated at more than 4000 points at that time. What a prescient operation it was!
As of April now, the bull market is gone. Most public funds and private equity funds have seen a steep decline in their yields. Only Infinity Fund still retains the fruits of the bull market's victory.

If Chen Jie can stand up and call on investors and Christians to re-enter the market at this time, isn't a market rebound just around the corner?

It is precisely because of Chen Jie's unique influence and the strong capital power behind him that the China Securities Regulatory Commission treats his personal opinions so carefully. Otherwise, there would be no need to discuss with him so "cautiously".

Chen Jie originally wanted to negotiate terms with the China Securities Regulatory Commission, but he didn't expect that the other party was a veteran and kicked the ball back to him intact.

He sighed: "I would like to spend real money to rescue the market, but there are still many unresolved problems in the market. It is impossible for me to risk the trust of investors."

"Chen Jie, if you have any other ideas, you can put them forward. Let's discuss them together while everyone is here." When Shang Fu said this, he smiled reluctantly. Chen Jie's level of "trouble" exceeded his imagination.

He has made up his mind that as long as the other party no longer demands a suspension of the IPO, he can discuss and resolve some non-major principled issues.

"Okay! Since Chairman Shang has said so, I am embarrassed to talk in circles anymore." This was what Chen Jie was waiting for. He smiled and took out a stack of pre-printed documents from the document bag he carried. A copy of the good document was distributed to everyone in the conference room.

Shang Fulin's face turned dark. He didn't expect Chen Jie to be waiting for him here.

He picked up the document and took a look at it, his face became even darker.

(End of this chapter)