As we all know, the A-share market is a big cesspool, and people who speculate in the A-share market are jokingly called picking up undigested beans in the cesspool. Although this description is a bit disgusting, it has to be said to be very appropriate.
So when someone said that the cryptocurrency world was also becoming like the A-shares, I felt a little dissatisfied and frightened. When did the cryptocurrency world fall to the level where it could be compared with the A-shares?
I couldn't help but ask chatgpt why China's A-shares have been sluggish.
==========================
Q: China's A-shares have been sluggish. What are the reasons behind this? Please summarize the 10 main reasons you think:
chatgpt's answer:
There are many complex reasons behind the long-term sluggishness of China's A-share market. Here are the ten main reasons:
1. Lax listing review:
- The quality of companies is not strictly controlled during the listing review process. Some companies with poor financial conditions and imperfect governance structures can be successfully listed, resulting in a large number of poor-performing companies in the market.
2. The delisting policy is not strict:
- For listed companies with long-term losses or violations, the delisting mechanism is not strict enough, resulting in these companies occupying market resources for a long time and affecting the overall quality of the market.
3. Lack of regulatory transparency:
- The lack of transparency in regulatory policies and unclear market expectations of policy changes have increased investor uncertainty and market volatility.
4. Insider trading and rat trading are serious problems:
- Illegal activities such as insider trading and profiteering are common, disrupting market order, damaging the interests of small and medium-sized investors, and undermining market confidence.
5. The market is full of speculation:
- Excessive focus on short-term hype and speculation in the market rather than the long-term fundamentals of companies has led to high market volatility and difficulty in forming a stable long-term investment environment.
6. Retail investors account for a high proportion:
- The A-share market is dominated by retail investors, who lack professional knowledge and risk awareness and are easily swayed by market rumors and emotional fluctuations, increasing market instability.
7. The quality of listed companies varies greatly:
- Some listed companies have problems such as imperfect governance structure, insufficient information disclosure, and financial fraud, which have affected the healthy development of the market and investor confidence.
8. High uncertainty in the policy environment:
- Frequent policy adjustments and changes make it difficult for the market to form stable expectations, and investors’ uncertainty about the future increases, affecting investment decisions.
9. Liquidity issues:
- Excessive issuance of new shares: The speed of new share issuance in the market is relatively fast, the number of listed companies is increasing, and investors have limited funds, which leads to an imbalance in market supply and demand and diverts funds in the market.
- Insufficient capital inflow: the proportion of foreign capital inflow is relatively low, residents’ savings preference is high, and investable funds in the market are limited.
- Market blood-sucking effect: A large number of listed companies raise funds through targeted share issuance, rights issue and other means, continuously extracting funds from the market, while the profitability of enterprises increases slowly and the overall market funds are tight.
10. Economic growth slowdown and external environment uncertainty:
- The domestic economic growth rate has slowed down and the pressure of structural adjustment is high. Coupled with the uncertainty of the external environment such as international trade frictions and global economic slowdown, it has exerted great pressure on the market.
These ten reasons have contributed to the long-term sluggishness of the A-share market. Solving these problems requires systematic reforms and long-term policy stability to improve market quality and investor confidence.
===================
Except for the tenth reason, these 10 reasons are perfectly applicable to the current cryptocurrency world!
Shit, I'm such a jerk! Oh my god!
