Can listed companies trade stocks? Why?

The State Securities Regulatory Commission, the People's Bank of China and the State Economic and Trade Commission stipulate that state-owned enterprises and listed companies are strictly prohibited from buying and selling stocks. 1. State-owned enterprises are not allowed to speculate in stocks, nor are they allowed to provide funds for other institutions to speculate in stocks, nor are they allowed to use the credit funds of national banks to buy and sell stocks. 2. A listed company may not use bank credit funds to buy or sell stocks, may not use the funds raised from stock issuance to speculate on stocks, and may not provide funds for other institutions to speculate on stocks. 3. Long-term investment (beyond the time limit stipulated by the competent department of the State Council) State-owned enterprises and listed companies holding listed shares shall report to the stock exchange, which shall take measures to strengthen management and supervise state-owned enterprises and listed companies to abide by these provisions. 4. State-owned enterprises and listed companies can only open one stock account (A shares) on the exchange, and they must use the name of the enterprise (legal person). State-owned enterprises and listed companies are prohibited from opening stock accounts in the name of individuals or providing funds for individuals to buy and sell stocks. 5. Stock exchanges, securities registration and settlement institutions and securities institutions shall check the opened stock accounts and capital accounts. If it is found that state-owned enterprises and listed companies speculate on stocks, or open stock accounts in the name of individuals to provide funds for individual stocks, they shall promptly correct them and report to the China Securities Regulatory Commission.

Why not?

A: There is a historical lesson that should not be forgotten in the China stock market: when the stock market rises, the funds raised by the company's listing often flow back to the stock market for stock trading.

In recent years, this phenomenon actually exists. After the listed companies raised funds in the stock market, the original planned investment projects changed and fell behind. In fact, they have invested a lot of money in the stock market. At that time, there was even such a thing: when underwriting stocks, the underwriter had already agreed with the listed company how much money to give to the brokerage firm for investment after financing. Obviously, when the stock market is hot, stock investment is easier to get benefits than industrial investment.

However, if listed companies invest in real estate or stocks, it will do great harm to the country's overall economy. It will not only make the market bubble fly all over the sky, but also weaken the industrial base on which an economic power depends to maintain health, thus intensifying the bubble and hollowing out of the economy.

200 1 After the China stock market entered the early bear market, many listed companies were in trouble because of "entrusted financing", and some even came to the brink of bankruptcy. This fact fully shows that our worries are by no means groundless. Although that way of "entrusted financial management" has not yet been opened, who can guarantee that the financing of listed companies will be used for industrial development?

Moreover, "money laundering" through stock investment is also a very convenient way, which makes the past China stock market almost become a "money laundering field" for listed companies. Stock investment is lost, and listed companies are carrying it; Earned, not reflected or less reflected in the statements of listed companies, and the difference fell into personal pockets.

In the mid-1990s, in order to support the market, relevant policies and regulations lifted the ban on industrial companies buying securities assets. And so far, there is almost no firewall for listed companies to invest in the stock market.

In view of the above reasons, when restarting the IPO and refinancing of China stock market, we issued the language of "Beware of the financing bubble", hoping to attract the attention of the regulatory authorities.

Of course, allowing listed companies to buy shares is conducive to mergers and acquisitions among listed companies in China. However, how to foster strengths and avoid weaknesses and find a balance between advantages and disadvantages is a question to test the wisdom of the regulatory authorities.