How to realize the Chinese Dream in capital market
Updated: 2013-05-10 22:50
(chinadaily.com.cn)
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Xiao Gang, the newly appointed president of the China Securities Regulatory Commission, recently delivered a public speech saying that "the capital market should become an important vehicle to realize the Chinese Dream". How to put such a saying in practice is worth considering, says an editorial in Beijing News. Excerpts:
Some believe that having a bull market in China can be called realizing the Chinese Dream. But such thinking is actually against the law of development. Neither the Chinese economy nor the stock market can go up in a straight line forever, and it is quite normal to have ups and downs. So instead of having a bull market, we should build an open capital market with justice and equity to realize the Chinese Dream.
To build a healthy market, first we should give up the original policy-dependent stock market. To be more specific, the authority should stop saving or stimulating the market with administrative means since the market can never be fair if it has too much unsuitable interference from the government.
In addition, the regulator should severely punish illegal actions in the market, like insider trading and illegally connected transactions. When the regulator completely separates itself from specific market activities and focuses on supervision, a fair market order can finally be created.
Although there will be ups and downs in the market, a healthy market can better allocate the resources by supporting those companies with good economic and social results and knocking out the bad ones. Only in this way can the capital market drive the economy to fulfill the Chinese Dream.
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