Cheng Siwei: The "Three High" Phenomenon Is Not Normal.

Cheng Siwei, former vice chairman of the Standing Committee of the National People's Congress, said yesterday that the "three high" phenomenon of the gem is not normal.

Cheng Siwei made the above statement at the "financial China 2010 meeting" hosted by Ho sum network in Beijing.

Since its launch, the gem has been in the whirlpool of public opinion because of the "three high" and "executive turnover".

In this regard,

"For example, the high P / E ratio is said to be an enquiry, but its process is reasonable and questionable."

He said.

As for the phenomenon of executives running away from the gem, Cheng Siwei said that it reflected three problems: one is the moral quality of executives, and the other is fleeing money quickly; two, it shows that executives lack confidence in enterprises, so investors should know more about the enterprises when they run away from senior managers. Three, enterprises are rich, and there is a contradiction between executives and owners.

But Cheng Siwei stressed that the gem is just over one year old, so it can not be too strict with it.

On the one hand, we should strengthen supervision over it. On the other hand, we should pay special attention to strengthening the system construction.

And the establishment of a market maker system is one of Cheng Siwei's suggestions.

"The role of a market maker is to first provide a counterparty for investors. When a buyer is not a seller, or a seller does not have a buyer, the market maker is responsible for selling or buying."

Cheng Siwei said, "secondly, the role of market makers is value discovery, because market makers are experienced institutional investors, and their assessment of these high-tech enterprises will be more objective.

In addition, because they want to participate in the paction, their assessment will be more objective. "

"We must cultivate this kid into a good child, and let him not become a bad boy."