Guoabong Wealth Management:A shares have fallen numb, India is crazy

A shares have fallen numb, India is crazy

Today, the 53rd 3000 -point defense war in A shares officially launched.

Everyone was numb, watching the index struggling up and down, and even a little bit want to laugh!

We did not wither, but India next door was a pillar.

The Indian Mumbai Index hit a record high yesterday. Today, it continued to rise, reaching 69376 points.

This is to go at 70,000 points …

In this regard, we can only smile and comfort each other: Mo enviable, their market is out of control!

To put it plainly, it is still sour.

I still remember that three months ago, I heard that the European Union was going to increase trade with India, and I immediately bought an Indian Fund.

Holding for half a month, it rose 1%and could not be sold.

If you get it now, you can make at least 10 points …

Alas, the habit of getting in A shares is about to go in and out, and I have forgotten the original intention of value investment and long -term holding.

The environment can affect a person and change a person.

I suddenly understand why the A shares are compared with the Indian stock market, and the two are the opposite environment …

Similar starting point, the opposite choice

Most of the successful stock markets reflect a characteristic: there is a good index that can represent the most advanced industrial direction.

Its long -term average return should be higher than the national economic growth rate.

Only in this way can the people believe in the national movement and form a wealth effect.Guoabong Wealth Management

People are not stupid. What is the use of mouth to say?It is the last word for everyone to make money.

So the question is: How do you know which one is the direction of the advanced industry and which are high -quality enterprises?

No one knows in advance, so it is to be given to the market choice.

The survival of the fittest is heaven.

Can US stocks be able to grow cows, just rely on financial hegemony?Of course, there must be high -quality companies to support the market.

And large companies such as Apple and Microsoft are the result of deliberate training in the US market?

Definitely not.They rely on their own creativity and vitality to survive in the fiercely competitive market.

Only by sufficient competition can the market enter a virtuous circle, and the cakes are getting bigger and bigger.

The same is true of India.

Established in 1875, India and Mumbai Exchange was the first stock exchange in Asia.

The original Indian stock market is similar to today’s A shares. There are constant companies listed on the market and not allowed foreign capital to intervene.

By the end of the 1980s, there were more than 6,500 listed companies across India, but the index hovered below 1,000 points.

Until the 1990s, India began to engage in "reform and opening up."In order to attract overseas investors, the stock market was changed together.

In 1992, India issued the "Pilot Measures for Share Enterprises".

In June of the same year, the Indian Securities and Exchange Commission also issued the "Guidelines for Investor Protection and Information Disclosure", which will use the "preferred" issuance system for hundreds of years to transform into "disclosure".

It is necessary to fully reflect the principle of marketization. The stock market must be out. You must not just make money for the old surnames.

The attitude is very resolute.

From 1992-1996, a large number of listed companies in India were added to ignite the final madness:

In 1992, 316; 549 in 1993; 1994, 968; 1994, 1281; 1,105 in 1996.

The other side of open new shares is the upcoming off -stock tide.

From 1997 to 2020, the number of IPOs across India was less than a quarter from 1992-1996.However, a total of 2,869 companies delisted, accounting for 54%, and an average of 106 years.

Make sure that only high -quality enterprises can stay, form a good index.

Nasdaq did this, the New York Stock Exchange did this, and India did the same.

A large number of enterprises’ delisting will not crack down on market confidence, but can become a bull market startup.

Of course, there is a premise: retain high -quality listing resources.

Unlike a large number of outstanding companies in India overseas, Indian outstanding companies must be listed on the Indian State Exchange or Mumbai Exchange.

For larger overseas listed projects, 15%of shares must be sold to domestic investors to effectively avoid market hollowization.

Only in this way can we guarantee full competition.Instead of large companies, there are three or two kittens in China.

Therefore, in 2004 alone, as many as 974 companies were delisted on the Mumbai Exchange.But from this time node, the Indian stock index has really opened up.

From 2016 to 2017, India’s second wave of delisting, and the trend of the stock index was obviously stronger than before.

Compared with dozens of A -shares with only dozens of households each year, whether they are proactive or forced, Indians are stronger than us.

While improving the "transaction end", the delisting efforts must be increased.

If this problem is not solved, there will never be a long -term bull market in A shares.

Hello everyone, it’s really good

After talking about the market system, let’s talk about the most concerned on the issue of everyone: trading system.

Guan Zi said: Those who benefit a hole are invincible.

Shang Yang also said: If you have a hole, there are many things in the country.

Do not entangle the original intention of the ancients. From today’s perspective, you can explain this way: Only by allowing most people to make money in the market can everyone work together to make more markets.

This is a virtuous circle.

So what must an excellent market do?—— Protect small and medium investors.

In 2001, India began to fundamentally reform the trading mechanism, the retail T+0, and it actually made the institution T+3.

Yes, you read it right, and the other is the other way.

That is to say, once there are risks, let retail investors run first, and the organization comes to break.

Is it true?Isn’t envy?

The purpose is only one: improve the efficiency of pricing and reduce transaction risks.

In this environment, ordinary talents dare to invest boldly.

Do you think this is over?

India’s protection of small and medium investors is far more than that.

In front of the Mumbai Exchange, investors are watching the trend

India has a "Investor Protection Fund", which provides relief to damaged investors for violations of listed companies or securities firms.

In order to ensure not only to ensure that retail investors make money, but also take care of them, not to be cut, but also be laughed at by the main force!

India also has a website that specifically reports the illegal listed company -Scores (Scores.gov.in). How many cases do you guess how many cases it accepted and resolved each year?

Brothers and sisters, what is this concept?Intersection

This means that 30,000 practical things are given to retail friends every year!

And many of them have been done.

So you can see that the number of cases and unsuccessful number of cases on the scores website show a downward trend.

In addition to shouting slogans and penalties, how many things can we do in one year?

Even if we have a report website, as long as the mechanism does not change, the case will only be piled up …

In addition, India has also established a strict anti -fraud issuance system and a collective litigation system. The central government has set up an investigation team that can directly rush to illegal companies or institutions to catch people.

Want to run after getting the money?No existence.

Screen report page screenshot

Of course, the Indian market is not completely ignorant of the institution, so there is no money to come in like that.

What needs to be understood is that India does not take T+0, large, fluctuation adjustment, securities margin, and city merchants as an individual demolished module, but instead the transaction mechanism is designed and considered by a systematic disk.

In short, it is to vigorously develop risk management tools such as derivatives, which is closely connected to the institution.

In other words, this stuff is what agencies should focus on, rather than trying to cut retail chives.

At present, the Indian State Exchange’s stock futures and options have the world’s number one in the world, and the stock index futures and options transactions are fourth in the world.

The stock market is cow, and the market is so friendly. Is there any reason to not invest in the middle class?

In recent years, especially after the outbreak of the epidemic, India is super large, and the enthusiasm for entering the market to enter the market has become increasingly rising.

In 2015, Indian retail investors were 10 million households; 2020, 21 million; 2021, 40 million; in 2022, it exceeded 100 million.

More and more people make money in the stock market, the benefits are obvious.

Cao Dewang once said: India has 1.4 billion people, and only 200 million people have spending.

In 2022, the global GDP per capita GDP was US $ 12,000 and India’s per capita $ 12,500, which looked good.

However, our consumption rate is less than 50%, which is far lower than 75%of the world average.

India has always been a big savings, and the consumption rate is as high as 77%.

The main reason is that of course the Indians were abducted by mortgages, and the consumption power was difficult to get up.

However, if the stock market can be good, so that the small people can make more money, the situation must be better than now.

In fact, is India doing these things for the stock market?

Any success and upward market in the world do this, India is just copying.

It’s just that our own market is strange, so it feels strange.

A good market has nothing to follow two points: a good regulatory system, relatively fair market rules.

Is there any difficulty to achieveIndore Investment?No.

India can do what India can do.I don’t doubt this at all.

The key is to do it if you want to do it.(Full text)

Ahmedabad Stock

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