What Kind of Regulators Do We Need

2008/3/12 16:25:29

First of all, discussing these issues now is not a personal matter for this ID, but rather about how current problems will seriously threaten our greater cause — a cause that belongs to all Chinese people.

As for this ID's investment situation — this was actually discussed long ago. Around 6100 points, this ID already shifted a considerable proportion of funds out for PE investments, which is an open secret by now. As for what remains in the market, the operating approach has been mentioned N times: just rotating back and forth between different sectors. However, since after the Spring Festival, this ID has been gradually transferring the surplus funds from each rotation out, preparing for the ChiNext board. Right now, it's just a rotation exercise without adding positions, because this ID feels that the current main board has only this much value left.

Today, let us all put aside our own investment situations and calmly consider a question. This question has nothing to do with whether your current investments are going well or not — it's a long-term, holistic issue.

We are taxpayers, and we naturally have the right to expect regulators to possess the competence we believe they should have. The taxes we pay each year contribute sufficiently to society. For us, tax evasion is absolutely not an issue — we sustain the entire industry, and we naturally have this right.

Regulators should at least possess these qualities:

I. Genuine market participation experience.

Our current regulators are basically from the banking system. These people fundamentally don't understand the specific issues of the market itself, and sitting in offices cannot produce policies that match market reality. Otherwise, if ditch-diggers and flatbread vendors could all take a turn at management, wouldn't that be a joke?

II. A truly macro-level vision.

If you don't truly understand the capital market's core position in the market economy system, you naturally can't formulate corresponding high-level strategies for the market. Without high-level strategy, you can only become an object of the market's mockery.

III. Wisdom superior to all market participants.

The market is the result of combined forces. If regulators' wisdom is lower than the level of market participants, then all their actions can only become resistance to the market. Without wisdom truly superior to the market's, one has no qualifications to manage the market.

IV. Using management and regulation to reflect the nation's economic will.

The capital market is the core of the economy, and the nation's economic will should be embodied through the capital market, standing at the height of the overall big picture and the nation's total strategy. This is the most basic requirement for regulators.

The above four points are just written off the top of my head. Everyone can supplement them. After all, this is a matter for all Chinese people — it has nothing to do with bulls or bears, nothing to do with pure personal interest, only with the apple.