The Capital Market Must Maintain Ecological Balance

2008/2/20 16:27:15

Environmental protection and ecological balance have already become worldwide issues, and the capital market similarly faces the problem of environmental protection and ecological balance. The various forces operating within the capital market coexist within the same system precisely because there is a basic coordinating relationship among them. Once this relationship is broken, the capital market's grand system will experience an ecological crisis. And once an ecological crisis occurs, restoring the capital market's vitality is not a matter of overnight recovery.

For China's nascent capital market, whose ecosystem is inherently extremely fragile, the ecological balance within it must be guided with some human intervention. This human guidance will be gradually reduced as the system matures sufficiently. Therefore, for regulators, consciously protecting the ecosystem of the capital market and its environment is their most important task. Because for regulators, the quality of their performance depends entirely on whether the capital market system operates smoothly. A decision that leads to an ecological disaster in the capital market can never be considered passing grade, no matter what.

The maintenance of the capital market's ecological balance is time-sensitive, and certain decisions are therefore also time-sensitive. For example, under current conditions, a major force within the capital market conducting aggressive fundraising activities that over-exploit the capital market's resources—such a thing is absolutely inappropriate for the times. Once it spreads, it will inevitably cause an ecological disaster.

A very important aspect of environmental protection is the rational and moderate development of the capital market's market resources, prohibiting indiscriminate clear-cutting. Even less should we allow those unlicensed small coal mines, or coal barons protected by local or other interests who illegally mine, to run rampant everywhere. These resources belong to all the Chinese people. No one has the right to waste them or do sordid things for their own benefit.

Actually, the world's principles are all quite simple, and the capital market's issues are also quite simple. What makes things complicated is always interests. With interests involved, everything simple becomes complicated. This is true of environmental protection in the real world, and equally true of problems in the capital market.

Therefore, to ultimately solve the problem, the behind-the-scenes black hands of these interests must be severed. That is probably the key to the issue.