Chinese People, Stop Habitually Being the Government's Slaves.

2008/4/7 16:05:58

For thousands of years, Chinese people have never held their heads up before the government and its bureaucratic offices. Even through dynasty changes, this slave mentality ultimately never changes.

The reality is that the government and its bureaucratic offices are our servants. Without us, where would these governments and offices even exist? It is our blood and sweat that sustains these institutions. Facing these institutions, everyone should stand with their backs ramrod straight.

Unfortunately, in reality, the overwhelming majority of people still unconsciously, in a completely collective-unconscious manner, act as slaves to the government and its offices. Take the capital markets, for example — look at the so-called "market rescue" rhetoric that people are still clamoring about right now.

In essence, there is no such thing as a top-down, charity-style "market rescue" from government offices. The real issue is simply making these servants correct their mistakes. Of course, if "servants" sounds too harsh, then let's use the term "public servants."

There is no market rescue, nor is there any need for one. What exists is only error correction. When you're wrong, admit it, fix it — it's that simple.

Unfortunately, most people's thinking has become twisted. They're all waiting for some kind of handout. At this rate, China's capital markets and China's modernization will truly remain a distant dream.

Compared to service-oriented management institutions, the biggest characteristic of bureaucratic-style management institutions is that their actions are completely divorced from reality, with all responsive measures lagging severely behind by several beats. For example, over the past two years, facing rapid price increases, the most basic economic common sense could have provided the simplest and most effective countermeasure: rapidly increase supply. And increasing supply requires timeliness — once that window passes, the measure no longer matches the situation. Now look at what the management institutions actually did: not only did they fail to increase supply, they actually introduced quasi-illegal blue chips with extremely low tradable share ratios. Isn't that the classic definition of adding fuel to the fire?

Bureaucratic management institutions can even harbor this kind of terrifying thinking: declines are better than rises, declines mean safety, and ideally everyone in the capital markets would behave exactly like bank depositors — that way there would be no trouble, and no trouble is the best thing of all. It is precisely because of such thinking over the past decade-plus that China's capital market trends have exhibited maximum speculative characteristics. Because everyone knows that the days of rising are numbered, once an opportunity appears they speculate with a vengeance, trying to pocket the maximum profits in the shortest possible time.

It is precisely because the mentality of both management and investors exists in such an atmosphere that a steady, long-term bull market can never truly materialize. Wild swings become the true norm. And at this point, talking about "preventing major market fluctuations" becomes quite laughable — a standard specimen of bureaucratic language. May I ask: in less than a year, going from 3,400 points to 6,124 points and back to 3,400 points — is that not a major fluctuation? When something is already a fact, what exactly is there left to "prevent"?

We hope there will be no more such meaningless bureaucratic pronouncements. We also hope that all of our investors will stand up, recognize their own power. The market was created by us. We are the true creators of the market. We are the true masters of the market. We must use our power to fundamentally change all of this.