At the end of July 94, the domestic A-share market, after just a few months, the Shanghai Composite Index fell from 1500 points to 300 points.

Although there are not many participants in the A-share market at present, the domestic management still attaches more importance to the long-term development of the stock market. In the early days, not only the investors were immature, but the management of the stock market was also very fragile.

In particular, as soon as the A-share market fell in the early days, the management could not sit still, although the intensity of the bailout policy was not as high as that of the fiscal, monetary, and industrial policies of later generations, and the linkage of different central departments to bail out the market. However, basically as soon as it falls, it is necessary to issue a policy from above.

So much so, impressing, the Chinese story of the policy city. The fall is so bad that the management is forced to come out with a policy, and the bull market is coming.

Of course, it is precisely this kind of game psychology that does not help the rationality and maturity of the A-share market. However, at present, the domestic A-share market is still in the stage of exploration and exploration, and it is impossible to require investors and management to be rational and professional from the beginning.

On the weekend after the end of the last trading day of the end of July, the Shanghai Composite Index fell to 32,589 points. On Friday, after the end of the transaction, the domestic management could not wait to throw out three major rescue policies.

Originally, the three major bailout policies were to "suspend the issuance of new shares, allow securities companies to raise funds, and establish Sino-foreign joint venture funds", but in the process of soliciting opinions, Lin Qi was also an entrepreneur who asked for advice from the top level.

In this era, the scale of domestic entrepreneurs is not enough for the top management to feel that they have the right to speak, but Lin Qi's new entrepreneurship department has a direct impact on the domestic economic growth rate. Although the influence factor is constantly declining, it is mainly due to the rise of other domestic enterprises, and the proportion of new entrepreneurship in the total GDP is constantly decreasing.

However, overall, the annual growth of the contribution of new entrepreneurship departments is still a good figure.

For the suspension of new shares, Lin Qi said: "If every bear market is stopped issuing new shares, it will form a conditioned reflex, so that investors mistakenly believe that the bear market is caused by the issuance of new shares, which is not conducive to the development of the A-share market, in essence, the financing function is the core of any stock market, investment and value discovery This is a product incidental to Yan Sheng, not the original intention of the establishment of the market, we can't always develop the stock market in order to establish an online gambling platform that is larger than the traditional casino, right?" Whether it's a bull market or a bear market, as long as the stock can be issued, then it will be issued. If the issuance cannot be issued, the risk of rotting in the hands of the brokerage will be borne by the brokerage. Need brokers to better study the enterprise, not whether the enterprise can be listed, to ensure that the fundamentals of the enterprise are excellent, even if it can not be sold, the brokerage can also hold shares for a long time to get returns, only the issuance of new shares is not stable and do not lose, the brokerage can be more professional, the stock market is now immature, mainly the market size is too small, easy to soar and plummet, more should continue to issue stocks, gradually increase the size of the stock market, the law gradually increases, with more listed companies, the short-term volatility will be lower in the future! As for the favorable plan to freeze the issuance of new shares, it is suggested that funds from insurance companies can be brought in to invest in the stock market. After all, insurance companies' premiums need to be diversified to maintain and increase their value. ”

For Lin Qi's private suggestion, the domestic management also accepted it humbly.

As a result, in July 94, the three major bailouts became-"allowing insurance funds to invest in the stock market, allowing securities companies to raise funds, and establishing Sino-foreign joint venture funds"!

The original three major bailout policies were mainly psychological to reassure investors.

In fact, in Lin Qi's view, at the macro level, the reason why the A-share market is sluggish is actually related to the current high risk-free returns in China.

Investing in long-term bonds and savings deposits can achieve an annualized yield of 15% in this era. This is equivalent to buying a stock with a P/E ratio of 667 times. It can be doubled in 667 years, not only is the risk lower than the stock market, but the valuation is also much cheaper than the stock market.

Even the stock market, which plummeted in '94, had an overall price-to-earnings ratio of 13 times. In other words, the static rate of return in the stock market is currently too low relative to bonds and savings.

Normally, the investment value of the stock market should be twice the rate of return of the risk-free rate. For example, if the market risk-free interest rate can be annualized by 15, then if the annualized return rate of equity assets in the stock market reaches 30, then it will definitely attract a large amount of capital to buy the bottom.

That means that the average P/E ratio of the market is 333 times, which is almost impossible!

Of course, in the long run, the long-term rate of return of listed companies will be higher than that of bonds and savings. It is precisely for this reason that although the current profitability of listed companies in the A-share market is not even as high as the interest rate on bonds and savings. But...... Lin Qi knows that many high-quality companies will grow tens, hundreds, or even thousands of times in the future.

However, interest rates will continue to fall in the future, both in government bonds and in savings.

It is for this reason that it is right to buy shares of undervalued high-quality companies at any time. Even, even if you have a bad vision and buy some junk companies, it doesn't matter...... This is because it is the shell resources of listed companies in the A-share market, and they will appreciate in the future! If a garbage company with tens of millions of dollars is stripped of its assets and liabilities, it should be worth more than 1 billion yuan in 20 years. This is still the valuation of a bear market, and if it is a bull market, it is not impossible that after the asset-liability stripping, the shell resources are worth billions.

In order to cooperate with the latest favorable release of the domestic financial management, Xinqi Insurance Company announced: "Xinqi Insurance Company has bought 200 million yuan of shares in the A-share market, and at present, there is no less than 300 million yuan of premium funds every month, of which 10 will be used for allocation in the stock market." Xinqi Insurance Company will carry out long-term value investment and continue to buy some equity ...... of listed companies with excellent fundamentals, excellent governance and long-term growth.

With the announcement of Xinqi Insurance that it is continuing to buy stocks in the A-share market, insurance companies such as Life Insurance, PICC, and Ping An have also announced that they will allocate stock assets in the A-share market at the right time with a large amount of premium funds in hand.

The joint efforts of major insurance institutions not only bring continuous incremental funds, but more importantly, bring more confidence to the A-share market.

Therefore, after entering August 94, the Shenzhen market was driven by Shenzhen Development and Vanke A, and the momentum of the rainbow started to soar continuously. Starting from August 1, in five trading days, Shenzhen Development soared from 783 yuan per share to 1,145 yuan per share.

In July, Vanke began to rebound from 5 yuan per share to 9 yuan per share due to the private placement of new shares due to the new entrepreneurship department, but then it fell back to 65 yuan per share. However, starting on August 1, the first trading day of August, because the current A market temporarily canceled the limit system, soared to 108 yuan per share, as for the close on August 5, it rose to 1567 yuan per share, and the stock price has exceeded the previous pricing of 100 million shares issued by Vanke to Xinqi Future Holding Company at 15 yuan per share.

Other listed companies basically rose and fell together, so the SZSE constituent stock index also soared by 50 points and broke 1500 points in 5 trading days from below 1,000 points!

The market of the Shanghai Stock Exchange is similar. The Shanghai Composite Index soared to 68,304 points from 32,589 points at the end of last week, July 29. More than 10 years later, it may not be possible to double the index in five trading days?

However, now due to the immaturity of the stock trading market, the number of listed companies is small and the plate is small. A small amount of capital will pour in, and there may be a phenomenon of rising and falling together.

Moreover, in such an immature market, there is not even a price limit system, so naturally there is a scene that makes the management speechless.

The five-day increase may be more than the five-year increase in the long-term bull market in many countries! Doubling in five years should be a relatively good slow bull market, but ...... In 94, A-shares were so crazy that they could double the market in five trading days.

However, this is also normal, the A-share market is still infants, restless bear children, and the standard requirements of adults and the elderly cannot be used.

On August 5, Lenovo Group submitted a listing application to the Shenzhen Stock Exchange...... The reason why it is the Shenzhen Stock Exchange is also because Lin Qi has a better relationship with the Shenzhen Stock Exchange. The listing of the Shenzhen Stock Exchange can not only contribute to the political achievements of Shenzhen, but more importantly, the efficiency of the listing will be faster than that of the Shanghai Stock Exchange.

Lenovo plans to go public and raise funds within this year, and if it does not choose the Hong Kong Stock Exchange, the domestic Shenzhen Stock Exchange is obviously a more suitable choice.