2012-03-31 18:29Leaderette: Sohu Securities starts a big discussion on the reform of China’s capital market system, and tries to find a solution for the China’s capital markets’ healthy development. Where is the future of capital markets? What is the direction for reform? On March 31^st, Sohu Securities invited the vice secretary-general of China Finance Academy and the director of Tsinghua Finance research center Fengming Song, the director of Central Finance and Economy University Finance and Securities Research Institute and expert of PBRC Research Bureau Fuling Han, and the vice chief editor of Securities Daily Shaopeng Dong to advise on the mechanism construction of China’s capital market.

The vice secretary-general of China Finance Academy and the director of Tsinghua Finance research center Fengming Song said when he mentioned the dividend system of capital markets, that mandatory dividend is not about giving up all the profits of listed companies. The board of directors will decide on the proportions of companies’ profits.

Main Board, Second Board, Third Board, or even the PEs are actually on different levels. For growing and valued entities, how to build up a capital market of different layers is very important. Main-board companies should promise on dividend before IPO. The payoff future of a company to gain return for its investors is the qualification for a company to be listed.

Professor Fengming Song guessed that, the millions of China’s stockholders must be always feeling sorry. Why is this? They have worked so hard to earn some money, and put them in the capital markets for some wealth income. But the money was kept by the market for so many years. If there is a main board market that can generate stable income, the stockholders may use the most conservative way of investment by buying only the stocks with dividends.