My fintech empire.

Chapter 1415 [Supplementary New Regulations to Protect Investors]

Most of the stock investors who have opened investment rights for individual stocks on the SGX do not play with individual stocks much, or if they do, they only use one or two layers of funds to play. They are not panicked even if they make a big profit and are very calm.

There is no talk of going after retail investors in the SGX market either, because in the first year of its opening, the size of retail investors' funds accounted for only a minority of the entire market.

Currently, the market value of retail investors' holdings in the SGX market accounts for about 13.23% of the total circulating market value. As for the proportion of total market value, it is even less. Fang Hong's psychological upper limit is that the proportion of retail investors' funds should not exceed 20%. Now it is less than 15%. Retail investors are not the mainstream of the SGX market at all, but institutions are.

Moreover, "patient capital" accounts for the absolute majority among institutions. Short-term speculative capital does not dominate the SGX market. This is an inevitable result of the top-level design system of this market. If you want to make big money, you can only be patient capital.

Why is it that only patient capital can make big money?

Because the SGX market strictly controls the entry of leveraged funds into the market, the market itself does not have margin trading business, and the off-exchange capital allocation is also very strictly regulated. Once discovered, the investor will be banned from the market for several years, and those with particularly serious circumstances may be banned from the market for life.

That's obvious, you have to be patient even if you are impatient, unless you don't want to make a lot of money.

Of course, short-term speculative capital is also indispensable, and such funds are needed to activate the market, but speculation cannot be allowed to become the mainstream of the market, otherwise it will be bad.

……

New city, quiet villa.

Fang Hong was looking at the statistical report of the SGX market. Tian Jiayi handed him the report and said, "This year's data shows that a lot of funds from the real estate market have been diverted to the stock market, or more precisely, to the SGX market."

Tian Jiayi added: "And this trend is still growing steadily. As long as the SGX 50 Index continues to maintain its bull market, the data next year will certainly grow further. Should we intervene in a targeted manner to curb the inflow of real estate funds into the SGX market?"

In the three years since the opening of the Singapore Exchange market, the cumulative increase has more than tripled, and the return on investment is much higher than the property market. This has made many real estate speculation groups unable to sit still, and the stock market and the property market have begun to compete for funds.

Moreover, since the second half of this year, the real estate market has remained sluggish. On the one hand, the real estate market itself has risen too rapidly and its scale is so large that it is difficult to rise again. On the other hand, Fang Hong has asked the Qunxing Group to launch a housing welfare subsidy for more than 10 million formal employees of its subsidiaries.

On the other hand, there is the Singapore Exchange market. Because the investment return rate of the stock market has exceeded that of the property market, a considerable portion of funds that should have entered the property market suddenly braked and turned into the stock market.

Not only has the stock market outperformed the property market, but it also does not have as many restrictions as the property market, so investors are more willing to invest in the stock market.

The combination of these three factors has made this year's real estate market increasingly sluggish, with prices seemingly unable to rise, and some sectors even showing signs of a correction.

Fang Hong finished reading the report and said, "No, as long as it is not illegal funds, there is no need to intervene. The SGX can strictly control the entry of leveraged funds into the market. The other financial institutions are really anxious. They will curb it at the source. Why should we do anything unnecessary?"

Tian Jiayi said: "As long as the SGX market remains bullish, I estimate that the diversion of funds from the real estate market will be difficult to curb. By then, the real estate market will have to seek help from the stars..."

Hearing this, Fang Hong said with a smile: "With the current size of Qunxing, it is definitely impossible to hide. In this case, why not let the real estate funds come to contribute liquidity to the SGX market as soon as possible? Why should I keep them out?"

What is certain is that when the property market enters the cold winter of the downward cycle, the higher-ups will definitely ask the stars for "help", because at that time only the stars have the ability to turn the tide. When Fang Hong comes to the stars to ask for a hand, he will not refuse if he has that awareness.

On the surface, it seems that it is unfair for Qunxing to deal with the trouble caused by others, but don't forget how Qunxing can reach its current height and still stand firm? In addition to Fang Hong's own ability, it is also inseparable from the strong support from the national level.

Let’s talk about the Singapore Exchange. Without a series of strong support from the state, can the Singapore Exchange be successful? Dream on!

There are many similar situations. The country has given positive policies and support both overtly and covertly, which has led to the achievements of the stars today.

When the country needs the stars to come out and boost the real estate market, Fang Hong will take on the responsibility without hesitation and do the finishing work, instead of complaining that it is not the stars' responsibility and choosing to give up.

If you don't want to take on this responsibility, you should have rejected the strong support the country has given to the stars from the beginning. You have tasted all the sweetness, but you don't do anything? This is not reasonable, and it is also a taboo behavior.

Fang Hong is very clear about this.

Some people think that the success of their business is due to their own abilities and capabilities, and they even regard the support from the country as their ability. Such people are typical of those who are confused.

As soon as the country takes back its support, he will immediately become unable to cope and his true colors will be revealed.

Fang Hong knows exactly how to resolve the problems in the real estate market. No matter what, when the time comes to ask Qunxing for help, he will take on this responsibility without hesitation, and Fang Hong will have a big say in how to do it.

The logic is very simple: I originally wanted something from you, and you readily agreed. Then you made some requests that I couldn't refuse. If I refused, it would be my fault, and it would even make me very passive.

This is the right to speak.

With the right to speak, Fang Hong will have the confidence to let Qunxing get things done while not letting Qunxing be treated as a complete scapegoat.

Finally, Fang Hong put the materials aside and skipped the issue of the property market. He thought for a while and then instructed: "Please remember this. Next year, the Singapore Exchange will issue a new delisting rule, adding a provision for investor protection."

Tian Jiayi immediately took notes.

Fang Hong said methodically: "The delisting mechanism includes compulsory delisting and voluntary delisting. Once the delisting decision takes effect, the exchange needs to entrust an independent professional team to conduct an asset evaluation of the delisted company and determine the fair price of the company's stock price."

After a pause, Fang Hong added: "The delisted company must repurchase the shares from the public investor at the fair price, otherwise it will face penalties. In addition, the delisted company and the public investor can negotiate whether to repurchase the shares at the fair price. That is to say, the public investor can continue to choose to become a shareholder of the delisted company. If they do not want to hold the shares, the delisted company must unconditionally repurchase their shares."

This supplementary item gives the decision-making power to public investors, and the delisted company can only accept it passively and unconditionally. But at the same time, the delisted company can also approach investors for negotiation. If it can impress investors and decide to continue holding shares, it is also a skill.

As for the investors who later regret their decision, the SGX will not care about it. That is already a dispute between the investors and the delisted company. Whether it is a lawsuit or other means, all consequences must be borne by the investors themselves, and they will not be in the right anyway.

……

(End of this chapter)