What does market transparency mean?

Seven basic viewpoints on authenticity and transparency in economic theory;

The first is information constraint. This is a famous saying of Stie Grize. There are serious information constraints in all markets, and it is impossible for many people to obtain information at the same time. According to Stie Grize's understanding, the concept of information constraint is different from information asymmetry. Asymmetry means that two people get different information about the same thing. The significance of information constraint is much greater, and many things are caused by information constraint, which leads to the failure of market mechanism to play effectively. In this process, the purpose of the government should be to solve the information constraint. Strictly speaking, information constraints hinder the effective operation of the market mechanism. This is related to the efficiency theory of the stock market.

The second is transparency. This is the core issue in the process of reforming the market economy system. Transparency has become the core category of the second-generation reform theory, and now some people are carrying out the third-generation reform. The first generation of reform theory was very simple at that time, namely marketization, private ownership and market. The second generation of reform theory emphasizes many new concepts, summarizes the problems in the transition process of these countries in Asia and Eastern Europe, and mentions the concepts of transparency, intellectual property protection and community. There are about twelve categories, and transparency is a very important category.

The third is the problems brought about by the Asian financial crisis. After the Mexican financial crisis, the Asian financial crisis followed. Especially after the Asian financial crisis, the IMF did realize the seriousness of transparency. When we summed up the financial crisis in Mexico, we realized that the Mexican financial system did not disclose financial information truthfully, and felt that there was a big problem. Later, the Asian financial crisis was summarized in several aspects: first, crony capitalism; Second, financial corruption; The third is the lack of transparency. In other words, the data authenticity of Asian financial institutions is far beyond most people's imagination. The data of the whole financial institution is untrue and opaque, and the impact of these situations on the Asian financial crisis can be felt by everyone. We can see that the issues of authenticity and transparency have a great impact on the economy.

Fourthly, the efficiency theory of the stock market. Its core is that the stock price has fully reflected all the information contained in the price at every moment. How much information does the stock price contain? How much information does the interest rate contain? How strong is its explanatory power? These three issues will always be frontier issues. The most important thing is the stock price. The explanation of price to information is so great that we can't explain this problem at present. The explanatory power of stock price information depends on the authenticity and transparency of the basic information of the whole stock market, so the authenticity and transparency of stock market information is the basis of stock market efficiency theory. At the same time, the theory of stock market efficiency is also a controversial issue in economics.

Fifth, the transparency and truthfulness of all information in the securities market is the basis for ensuring the effective supervision of the securities market. Theoretically, the information in the securities market refers to all the information that can affect the stock price. This definition is too broad to be defined at all, such as weather, sunspot eruption, wheat growth and so on. It is difficult to reflect the authenticity of these things. Generally speaking, there are three main ways to narrow down the scope: the authenticity of the company; Authenticity of regulatory information: authenticity of investor information. The concept of authenticity refers to ensuring that all records are true at every time point and time series. It's hard to be accurate, it's just a definition of pure economics. Transparency means that this information should be truthfully released to the public within a standardized time and behavior. Full transparency refers to the activities of listed companies every second, so that investors can know immediately, which is impossible now.

There is an interesting theorem in the securities industry. Theoretically, if a company can be completely transparent, it can go public, whether it is good or bad. This refutes the theory that listing should have certain standards. In fact, after the enterprise is completely transparent, whether to buy stocks or not is a matter for investors. Maybe you can take the risk and buy shares in a completely transparent company, even though it is not good now. Therefore, transparency is the main factor for investors to invest, not other aspects such as income.

The relationship between complete transparency and complete truth is that real things must be transparent and published regularly. Only with certain transparency can you prove its authenticity. The authenticity and transparency of data are intrinsically related. It should be published regularly, and the data is true to a certain degree of transparency. Without the monitoring mechanism, it is impossible to prove the authenticity of the data.

Sixth, authenticity and transparency are the benchmarks for the effective operation of the entire securities market. In the securities market, transparency and truthfulness are the real protection for the interests of minority shareholders. The unfair treatment of investors is actually reflected in the cost and time of obtaining information. How to make all investors get fair treatment in information is obviously a difficult problem in the securities market. All investors in the securities market should be fair and everyone should be able to get the same information at the same time. But it is difficult to do this now, so the authenticity and transparency of the securities market are very urgent. Because the relationship between information and price is too close, it is obvious that this problem is more prominent and contradictory in the securities market than in other markets. The securities regulatory authorities in many countries are also struggling to solve this problem. The inequality of economic opportunity in economic theory is the inequality of information opportunity after modeling. Analyzing this situation in the language of the CSRC is called insider trading, in other words, a few people will get more information than most shareholders, earlier than them. This situation is obviously abnormal and needs to be supervised and guaranteed in the system.

Seventh, truthfulness and transparency is not only a matter for government departments, but also involves private truthfulness and transparency. This is also a typical problem after the Asian financial crisis. When it comes to authenticity and transparency, it is considered a matter for the National Bureau of Statistics. The Planning Commission, the Securities Regulatory Commission and we believe that private enterprises should also have transparency, which has gradually extended to the theory of corporate governance structure and even to the sports world. There is a saying in IMF that "transparency is the golden rule". Now, transparency has become a category of economics.

Now there are some international standards about authenticity and transparency.

It is said that there are more than 70 standards, the most important of which are two standards of IMF. The first is the release standard of special data. International organizations such as SDBS, GDBS, International Association of Securities Commissions, World Bank, International Corporate Governance Forum, etc. Different transparency standards are being formulated for different industries and departments, and China is actively preparing for internationalization according to these standards. The international standards on transparency are mainly about finance and finance, and also involve government announcement. For example, transparency in decision-making refers to the government.

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Authenticity and transparency of China stock market

At present, it seems that the implementation is relatively poor. For example, there is something wrong with the data of listed companies. It can be seen from the exposed facts that it is a common phenomenon to make false accounts, which is the first point of the problem, and the second point is that the authenticity of shareholders' private affairs is questionable. Once in a company's annual report, among the top ten shareholders, the ninth was from a forest area in Heilongjiang. Apparently, someone bought his ID card. There is no real name registration system in the stock market, and many people have many accounts, which are obviously bought. The availability of identity cards in China is also a unique phenomenon. For a time, the authenticity of the securities market was confused. It can be said that this foundation was chaotic from the beginning. According to statistics from relevant departments, there are 50 million investors in China, of whom at least half are farmers. This responsibility lies not with the CSRC, but with the People's Bank of China. At first, it was managed by the People's Bank of China. At that time, the country didn't expect anyone to buy an ID card, so it was exploited. Now this problem has not been solved. In addition, there are many duplicate names in China, which is not convenient for investigation. The third is the intermediary. According to reason, the intermediary exists to ensure the authenticity and transparency of the market, but our intermediary itself is fraudulent, and many cases have reflected this situation. Like packaging listing, many domestic intermediaries did not follow their due professional ethics, but this is not true. Fourthly, China has no system to ensure the authenticity and transparency of information in the securities market. Of course, the CSRC has made a lot of progress now, but in fact, some of them are not because of the CSRC but because of institutional problems. As the main participants in the market, securities companies have not done enough in authenticity and transparency. Many securities companies are listed in multiple positions and have many private accounts, but according to the regulations, institutional accounts should be needed. In the past, not only in the secondary market, but also in the process of listing, people acquiesced that the data of some listed companies were false, and the false people were not responsible. Now our management is much stricter. If you cheat, you will be responsible. The fifth is to register a company. This is a key link, but it has not been done well in the past decade. The sixth problem is the exchange. One of the authenticity issues is about the authenticity of transaction records, while the transparency issue is about the transparency of the exchange itself. For example, in my impression, the financial statements of China Stock Exchange have not been published, while those of other countries have been published. Finally, the regulatory authorities, including the People's Bank of China, the Planning Commission and the Securities Regulatory Commission, also have a lot of work to do, including the transparency of decision-making, the transparency of laws and regulations, the timely publication of data and online inquiry. These seven companies are the main participants in the whole securities market. From a practical point of view, there are problems in every link, and some have problems in the early stage. For example, the "Monkey King" locals know it, but investors in other places don't know it, which shows how unequal the access to information is. Obviously, this problem shows that the securities market has not delivered in time and lacks a delivery mechanism.

Why are these problems?

In fact, it is very simple, because the cost of counterfeiting in China is too low and the income is too high. Now the problem of making false accounts in society is also very serious. If strict punishment can be imposed, the cost of making false accounts will be great, and this kind of behavior of making false accounts will be gradually eliminated. Compared with counterfeit drugs and fakes, the fraud income in the securities market is greater and the cost is lower, because he directly cheats consumers' money, and a few watches can cheat tens of millions of billions of capital, but the cost paid by the whole market economy is heavy. This kind of fraud is not only the poor quality of listed companies, but also the change expected by investors, who will think that everything is fake. This price has appeared now. Because in the stock market, false information is also information, which is also reflected in the stock price and investors' expectations. This is the core of the stock market efficiency theory, that is, China investors' own expectations are based on fraud. Therefore, the national policy was originally intended to let investors go east, but it turned out to go west. Here embodies the expectation theory and the stock market efficiency theory. The market is expected, it can know all the information and filter it. These theories are included in the whole stock market efficiency theory and stock price index, which fully embodies his information explanatory variables, even if they are not established, they have become real situations. In concrete operation, we can feel the long-term unreality and low transparency of China stock market, which has been reflected in the actions of thousands of investors.

How to improve these problems mentioned above?

There are several key points here: one is the perfection of the national system or the perfection of the authenticity and transparency of the securities market. First of all, the real-name registration system and the shareholders' real-name registration system are the basis. In the future, in China, people will pay taxes through personal identity cards, savings deposits, real estate and driver's licenses. Social security number, credit registration, stock registration, etc. These things are legally based on the registration in real-name registration system, but they have not yet formed a system that can be done by computer, but there are still obstacles in the system. They have not been done well and will certainly be done well in the future. The collection of personal income tax in China is also incomplete. It has been suggested that China's social security system should be changed to that of the United States, while the original ID card is still in use. Now that the ID number has increased, the real-name registration system itself will become a legal issue in the future. This problem does exist in our country. Many people can live well without an ID card, and their life circle is small, and their ID cards are useless. Putting an end to the phenomenon of fake ID cards is the first system requirement. The second is that news should be competitive. In the securities market, preventing fraud means that there is an institutional arrangement to improve transparency, that is, competition in journalism. Most of the fakes in the securities market all over the world are exposed by the press. The reason why the news was disclosed so quickly was because there was competition. This is an effective restriction mechanism. The role of the Wall Street Journal in the American stock market should not be underestimated. He knows many important cases. Competition and deregulation are very important to promote the securities market and ensure its authenticity and transparency. What our country has done at this point is still ok. It is a good system for the press to compete for information in the securities market. The third issue is what the regulatory authorities should do. That's all that matters. The regulatory authorities are the punishers. Now it seems that such fake units should be punished, and the issue of transparency is also very important to the regulatory authorities. Regulatory authorities should consciously accept transparency standards and regularly publish published information, data and regulations to make decision-making scientific. It is most important to arrange all kinds of information, data and prescribed release schedule in advance.

Our country is also making progress in this respect now, and it would be good if the spokesman of the National Bureau of Statistics announced it regularly. However, in other departments, other details are not enough. Some important information of the People's Bank of China is scheduled to be released on Saturday, and so is the China Securities Regulatory Commission. The scheduling of this system is very important, and the regulatory authorities have a lot of work to do. The fourth is the true disclosure of accounting of listed companies. In China, the main problem is lax punishment. Even the spokesperson of the Ministry of Finance admitted that 90% of the company's profits and 80% of the capital value in its annual survey were untrue. These statements are all recognized, which shows that the authenticity of the company cannot be achieved. Because making false accounts in China is still related to political achievements. So from the perspective of enterprises, so far, there is no effective system to effectively prevent enterprises from cheating, which is a big topic.