China's Stock Market Is Still Volatile.

Registration system reform is the highest form of market-oriented reform of the capital market. The need for strict law enforcement and escort has reached a consensus. Unfortunately, as a news of registration reform, it has repeatedly hit the market. The SFC has to fall into a rumor that the stock market is plummeting - clarifying - and then rumor - the stock market is plunging again - again clarifying the cycle. I feel that this is out of step with the registration system reform, and is also incompatible with the rule of law.

In February 25th, China's stock market once again slumped. At the close, the Shanghai stock index plunged 6.41%, the biggest fourth day decline this year, down 187.65 points, at 2741.25 points, the Shenzhen index fell 7.34%, fell 756.55 points, reported 9551.08 points, the gem fell 7.56%, fell 166.6 points, reported 2037.14 points.

In terms of volume, the Shanghai stock exchange closed 271 billion 770 million yuan, 394 billion 766 million yuan in Shenzhen Stock Exchange, and 666 billion 500 million yuan in the two cities, which was 80 billion yuan more than yesterday.

The two cities had 17 non ST stocks trading, 1432 shares were down, and only 50 stocks rose.

What is even more important is that the stock market has been going well yesterday. The Chinese stock market is still fluctuating today. There is no sign of a strong recovery. It is hard to fall easily, or lose confidence, and it is hard to restore confidence.

The rise of the 8 trading days after the holiday is completely beaten back to the original form by a big line. It shows how powerful the rumor is! It can easily defeat the market and defeat the bulls.

Chinese stock market investors are suffering from bloodbath again. The capital market is going up and down, and there will be some ups and downs. It is not surprising that the ups and downs are falling, but the slump is worth saying, because the trigger for the collapse is the registration system reform rumors. Yesterday, the news came out from the market. In March 1st, the gem was totally stopped, followed by the registration system. The main board and the small and medium board were not yet fixed, and the arrangements were made again.

This is a big news story, and it should not be overlooked for the market impact.

Because the registration system is very inconsistent.

There is a huge dammed lake, which is a headache and fear.

Up to now, the number of first round enterprises accepted by the SFC is 762, of which 100 have passed, and 662 have not yet been accepted.

There were 628 normal trial companies in the enterprises, 34 enterprises were discontinued, among which 9 were the Shanghai Stock Exchange enterprises, 9 were SME Board companies, 16 were gem enterprises, and the GEM companies were waiting for the largest number of listed companies. As at February 18th, the CSRC accepted 762 enterprises, including 253 gem enterprises.

It accounts for more than 30% of the total company. Once the rumors come true, it will be a disaster for the gem.

High estimates will return quickly.

Rumor makers really worked hard, fully studied the status quo of China's stock market, directly grasped the core of the problem, and directly hit three inches. The effect was obvious. Only 50 more than a thousand shares were closed, and more than 1430 stocks were down.

The securities and Futures Commission, which is also afraid of the stock market crash, immediately came to clarify that the spokesman of the securities and Futures Commission, Deng Ge, said that the SFC had never studied the registration system of the second board independently. There was no arrangement to stop the audit of the growth enterprise market in March 1st. There was no problem of arranging the main board and the medium and small boards to make arrangements again. Clarification should be made. The facts could be clearly stated and the fear of the market eliminated. At the same time, the SFC also expressed another attitude. The SFC strongly condemned these irresponsible false rumors.

Condemnation is also necessary. After all, this is an irresponsible act, which has led to a rare collapse in China's stock market and investors have suffered great damage.

But clarification and condemnation can not save the huge losses of investors. Clarification and condemnation can not prevent the occurrence and spread of the next rumor, and even give a hint to the rumor propagator, that is, there is no need to bear any responsibility.

There is no need to be responsible for rumors. There have been many times when the registration system has broken the market. The SFC should take advantage of its own administrative enforcement power to take up legal weapons, punish those who spread rumors, defend their image and defend the dignity of the law.

At the same time, rumor communicators can be asked to compensate investors for their losses.

The capital market is an information field. Therefore, the securities law strictly prohibits the spread of various rumours. According to the Seventy-eighth provision of the securities law, it is forbidden for state workers, media practitioners and relevant personnel to fabricate and disseminate false information to disturb the securities market.

Securities exchanges, securities companies, securities registration and clearing institutions, securities service institutions and their employees are prohibited. The securities industry associations, securities regulatory bodies and their staff members make false statements or misleading information in securities trading activities.

The dissemination of securities market information by various media must be truthful, objective and prohibit misleading.

Obviously, the 25 day registration system violated the 78 provision of the securities law. The SFC can intervene in accordance with the 78 provisions.

At the same time, the securities law stipulates that in violation of the provisions of the Seventy-eighth and third paragraphs of this Law and disrupting the securities market, the securities regulatory authority shall order rectification and confiscation.

A fine of more than one time or more than five times the illegal gains shall be obtained; if there is no illegal income or the illegal income is less than thirty thousand yuan, a fine of thirty thousand yuan and two hundred thousand yuan shall be imposed.

Rumors in China's capital market are everywhere. The reason why rumors are everywhere is that rumor makers are rarely dealt with by the SFC. The most recent example is that in June 2, 2015, Liu Qintao posted the title titled "Dongguan securities pin for more than 50 million of VIP risk warning" in the stock bar's "China South car bar". It made up and disseminates false information and disrupted the securities market. The SFC decided to order Liu Qintao to correct it and impose a fine of 150 thousand yuan.

The impact of this fine on Liu Qintao is profound and unbearable.

It's enough for him to reflect.

Now the market is in a turbulent period. Investor confidence is weak, and it is sensitive to all kinds of information in the market. It tends to magnify the impact of the news itself on the market, resulting in huge fluctuations, especially the sensitive information such as the registration of new stock issue, the reduction of large shareholders, and so on. It is even harder to estimate the market impact. The SFC should strengthen supervision and care, and the media and practitioners should also strengthen self-discipline, prevent market rumors from damaging the market, maintain stable operation of the market, and ensure the orderly advance of capital market reform.

In the face of rumours flying around the market, the key is that the SFC will uphold the principle of governing the city according to law. Once the rumor is attacked, clarification is necessary, but clarification can not stop rumors from happening again. The key lies in timely and severe crackdown, which makes rumor makers fear.

Liu Qintao, as an individual, was fined 150 thousand yuan for spreading rumors. From Liu Qintao rumor's influence on the stock market, far from the registered system, the rumor had great impact on the stock market. In January 17th, the stock index fusing trade was related to the registration system rumors. The fall of 1000 shares on the 25 day was also related to the registered rumor. If the rumor maker was punished in January 17th, there might be no 25 day registration rumors to hit the market.

In June 18th, Li Gang, a spokesman for the securities and Futures Commission, said at the "2015 Lujiazui forum" briefing that the market is highly sensitive to information.

Some illegal elements deliberately fabricate and disseminate some false information, seriously disrupting the order of the capital market, and even causing the stock index to fluctuate greatly. The SFC has paid close attention to some rumours in the recent capital market.

The SFC has repeatedly stressed the need to crack down on bad information such as self media and other new tools. But for the registration system, rumors always show mercy and harm the market. Behind it, there is no big price for rumor makers and communicators. If there is a heavy penalty on rumor makers in January, then there will be no limit of 1000 shares in February 25th.