Increasing rationality of GEM trading may reduce the threshold for introducing incremental funds

category:Finance
 Increasing rationality of GEM trading may reduce the threshold for introducing incremental funds


If we look at the overall performance of the last five trading days, the trend of Kechuang board tends to be more stable. From Sept. 30 to Oct. 11, the Shanghai Composite Index rose 1.41%, while only two stocks in Kechuang Board rose, while the other 31 stocks fell, 11 of which fell by more than 10%. The same is the scientific and technological attribute, the same is the high PE attribute, the volatility of the board is significantly less than the motherboard.

It can be clearly seen that although the trading mechanism of KSB is more flexible and the fluctuations allowed during the day are larger, the listed KSB stocks have not been speculated in the market. It may be mainly affected by the following factors:

Firstly, the overall trend of KSB is flat and the negative feedback of trading activity is strengthened. Continued weakness will reduce investor enthusiasm for participation. From the perspective of the operation of most stocks, the turnover rate will decline rapidly after the first five trading days of listing, which means that the impulse trading of investors is not strong, and the stock price will shrink and consolidate, which in turn will further inhibit the motivation of over-the-counter funds, unless there is a good incentive or large-scale capital entry, this relatively balanced situation can be changed.

Thirdly, the linkages among all the companies are weakening. This is also a more rational performance of investors. There is no strict right or wrong in this question. If we look at the number of stocks, the whole board can actually be regarded as a concept board of the motherboard. Normally, the trend of individual stocks in the concept plate has strong linkage. For example, the recent strong performance of the concept of digital currency plate, the stock in the plate will follow the leading stock appear linkage rising situation. However, there is no strong linkage in the stock market. Wald and Nanwei Medical have increased by more than 30%, but other stocks have not followed the trend. Independent trend of individual stocks can also be regarded as a signal of investorsrational return to a certain extent.

In view of the fact that the trading behavior of Kechuang Stock Exchange has shown a stronger rationality than that of the main board, the author believes that the threshold of investors can be lowered appropriately in order to introduce different levels of participants.

According to incomplete statistics, only about 3 million of the 148 million shareholder accounts have more than 500,000 funds. The rules were designed to protect small and medium investors in A shares. After all, the one-way 20% rise and fall limit itself is more risky than the motherboard. But it also limits to a large extent the number of investors and trading enthusiasm. The rational trading behavior and investment concept of institutions and large investors ensure the smooth operation of the SCM market, but the trading mechanism of the SCM market also needs more levels of investorsparticipation, which can test the trading mechanism of the SCM and the focus of the A-share reform more effectively.

In addition, the increase of investor participation can also bring incremental capital entry, improve the profitability effect of Kechuang Stock Exchange, weaken the negative feedback effect of stock price decline and trading activity, and may even improve the operating atmosphere of A shares as a whole and increase the enthusiasm of the stock market.

In a word, the supervisor regards the science creation board as the experimental field of A-share market reform. Under the background of the large proportion of retail investors in Chinas stock market, increasing the participation of small and medium-sized retail investors in the science creation board properly can verify the perfection of the science creation board trading system and improve the pertinence of the A-share system reform.