A Reflection On The Management Of Stock Market Value: The Chaos Of "Pseudo Market Value Management" Is Frequent, And The Supervision And Punishment Are Weak

Market value management of listed companies has been pushed to the forefront.

        With the explosion of the microblog big V Ye Fei, the regulatory authorities have repeatedly expressed their attitude within three days. First, the CSRC adheres to the "zero tolerance" attitude to conduct market manipulation and insider trading in the name of market value management. Those suspected of committing crimes will be transferred to the public security organs in time. The second is to investigate the related accounts suspected of manipulating Zhongyuan household and other stock behaviors according to law.

The reporter of 21st century economic report interviewed many institutions and learned that there is a complete and mature black industry chain of this kind of pseudo market value management, which involves a wide range of aspects. The personnel of listed companies, securities companies, public offering and other institutions all participate in stock price manipulation, which ultimately damages the interests of small and medium-sized investors.

"This kind of market value management is actually the management of market value. On the one hand, it is driven by huge interests. On the other hand, the thinking of speculation and speculation of retail investors for a long time has contributed to this kind of behavior of stock price manipulation." As for the stigmatization of market value management again, an investment bank of a securities firm in Shenzhen believes that the existing supervision and punishment are weak, and there is still a long way to go to eradicate pseudo market value management.

"Market value management can not be simply understood as stock price management." Dr. Huang Jiangdong, senior consultant of Guohao law firm (Shanghai), believes that market value is equal to the product of profit and P / E ratio. Efforts should be made from the two aspects of profit and P / E ratio, so as to promote each other and interact with each other to achieve a virtuous circle of spiral rise. This is the right way of market value management.

Market value management dissimilates into management market value

In 2015, Xu Xiang, the "big brother of China's private equity", was arrested for manipulating the stock price in the name of market value management, so that the concept of market value management has attracted the attention of all parties.

As a private equity fund, Zexi investment under Xu Xiang has been widely involved in fixed increase and deeply involved in the strategic operation of listed companies. It has pushed up the share price of listed companies through various ways, and finally achieved illegal profits.

In fact, real market value management is not a derogatory term.

Market value management is a unique management concept in China's capital market, which was first proposed after the launch of the split share structure reform in 2005. On May 9, 2014, the State Council promulgated several opinions on further promoting the healthy development of the capital market, which clearly proposed "encouraging listed companies to establish market value management system".

In essence, market value management is conducive to the healthy development of the market. Market value management is to establish a long-term organizational mechanism for the company to maximize the value of the company, create value for shareholders, and maintain the relative dynamic balance of the relationship between the related parties by maintaining accurate and timely information exchange and transmission with the capital market. It is a strategic management mode which combines the three aspects of enterprise management and development, capital market operation and stakeholder management.

However, the market value management, which is conducive to the healthy development of the market, has taken another road. Many people equate market value management with market value management, so they embark on the road of manipulating stock prices and pursuing short-term benefits. Some organizations make use of this misunderstanding to fish in troubled waters and make a fortune.

Recently, ye Fei disclosed in his micro blog that the listed company, in the name of market value management, sought an intermediary to take over the offer from the next institution. As a result, the share price fell sharply. Not only was the next company locked up, but the listed company also relied on the agreed balance. Many listed companies and institutions were involved in this incident.

In fact, market value management and market value management are two concepts. Based on the long-term, industry-oriented, strengthen the main business, improve profitability, and at the same time carry out capital operation legally, and organically combine the two, is the real market value management. The other is "pseudo market value management" -- only looking at the present, ignoring the main business, only focusing on stimulating the stock price in the short term, or even colluding with inside and outside the law to raise the stock price, and take the opportunity to make profits.

Behind "pseudo market value management"

Ye Fei revealed that "pseudo market value management" is actually the joint manipulation of stock price and securities market by traders, listed companies, funds and securities companies.

Although the regulatory authorities claim to maintain zero tolerance for various illegal activities such as market manipulation, why are the licensed financial institutions like funds and securities companies willing to participate?

"It's all driven by interests." Some private fund people said that the major shareholders of listed companies generally have three demands. One is in the reduction of holding, can make quick money, pull up the stock price, arbitrage income soared. The second is that when the large shareholders face a higher pledge rate, the manipulation of the stock price will not face the explosion. The third is the commitment to participate in the fixed increase institutions to drive up the stock price and prevent the institutions from losing.

Therefore, when the performance of listed companies increases significantly, mergers and acquisitions, additional issuance, or significant shareholders reduce their holdings, they may become the high occurrence point of manipulating stock prices.

Securities companies and public offering may be the role of "taking over". According to Ye Fei's revelations, both securities companies and public offerings are inferior. If the public offering and the offer side cooperate, the public offering will hand over the stock pool, and then the offeror will select the stocks recognized and buy them first. If you buy 300 million yuan, you can take out 30 million market value as a purchase for the mutual fund manager.

Then, the public offering is responsible for raising the share price, and every 10% of the company's earnings is withdrawn to the public offering.

The cooperation mode of securities companies asset management is almost the same, mainly the handling fees.

According to the above-mentioned private investors, after deducting the intermediary fees, the income of the company is 55% between the boss of the listed company and the pan side. As for the contribution of the next company, the company will directly pay the benefit fee in private, so that the institutions can be tied together in one boat. "Under the impulse of capital chasing profits, stronger regulatory measures are needed to eradicate the pseudo market value management".

Market value management returns to the right path

"Market value management is not a legal concept in itself." Huang Jiangdong believes that the most relevant legal concept of market value management is market manipulation. In fact, market violators often "manipulate the market in the name of market value management". Market manipulation is a concept of securities law and criminal law, and also a major illegal act of securities that regulatory authorities crack down on. Therefore, market manipulation should be clearly defined in law, and market value management and market manipulation should be distinguished. Therefore, market value management and supervision is transformed into the legal definition of the elements of market manipulation (mainly information manipulation), such as the subjective intention of manipulation, the objective behavior of manipulation and the result of the influence of price and quantity.

Zhang Yundong, former Secretary of the Party committee and director of the Shenzhen Securities Regulatory Bureau, said that the size of the market value is often not positively related to the operation and management of enterprises, and to a large extent is also subject to the influence of external market conditions. In recent years, the concept of market value is widely popular, and the value misleading is very obvious. In the pursuit of market value, real economy investment has been ignored. The duty of listed companies is to eliminate interference, concentrate on their main business, strengthen technical management and business management, tap the potential of industrial development, and devote themselves to innovation and create intrinsic value.

For the return of market value management, Huang Jiangdong believes that we need to drive market value from two aspects: profit and P / E ratio. The former represents industrial operation, which requires the listed companies to base on the industry, deeply plough the industry, improve the management, strengthen and enlarge the main business, and truly do the income and profit. The latter represents capital operation, which requires listed companies to select track, optimize business model, improve capital structure, reasonably finance, effectively carry out merger and acquisition, pay attention to investor relationship management, and be good at value dissemination, so as to make the company more recognized by the capital market and give higher valuation. These two aspects should be paid attention to in order to promote each other and interact with each other to achieve a virtuous circle of spiral rise, which is the right way of market value management.