December 16, 1996 (Rat-year winter and early six), "People's Daily" Blog "first published trigger" Stock earthquake.

1996 12 16, "People's Daily" published Commentator article "a correct understanding of the current stock market. This is the first time since the founding of New China issued for the stock market "quasi-editorial" purported reminded investors to have a clear understanding of the current situation of China's stock market, has led to a "stock earthquake "The stock market fell across the board, shareholders are ignorant.
commentator's article said, stocks had already become a hot topic, people from all walks of life competing to enter the market, the Stock Exchange a few months to add investor accounts of over 800 million, the total number of more than 21 million investors accounted for considerable proportion of the urban population. Since April this year, the stock market has gradually picked up after October spikes. From April 1 to December 9, the Shanghai Composite Index rose 120%, Shenzhen Component Index rose 340%. This is rare in the international securities market. This boom is not normal and irrational. the
commentator's article pointed out that the current stock market extraordinary surge of the main reasons: first, institutions large market manipulation. Some funds large use of the stock market soaring and retail investors to follow suit, frequently Zuozhuang, speculation turns. These large mostly state-owned enterprises, by virtue of their status, relationship, do anything they want, and profiteering. Second, the bank illegal funds into the market. Third the securities institutions violation overdraft. Fourth, the media adding fuel to the flames. Part of newspapers, radio stations, television stations, and falls out of the stock analysts programs and securities advisory body rarely risk cautioned, but blindly uproar, and some even spread rumors and misleading investors. Some illegal publications lip service, released the big bull market make a lot of money "speech without responsibility, in order to attract readers to seek profit. Fifth, misleading mistakenly believed investors follow suit. In fact the stock market is not always long, always ebb, soaring will nosedive, the national stock markets, without exception. Shuaiguo wrestle due to a considerable number of investors in the stock rise of new entrants, there is no lack of risk awareness, credulous public opinion misleading, mistaken for the stock market will be able to not fall. There is also a psychological factor can not be ignored. Suppress inflation significant achievements this year, the bank cancel hedge against inflation supplement for additional savings, and twice lower deposit and loan interest rates, many people think that the low rate of savings deposit gains than stocks, the risk is not more profitable. This is a misconception. says
commentator's article, examine the history of the countries in the development of the stock market, it can be seen, not only rise and not fall of the stock market, a slow rise may slow down skyrocketing inevitable slump, this is a common law of the countries in the stock market. Skyrocketing so will lead to the crash, is determined by the objective economic laws. The price depends on the value, the price is a serious departure from the value will only be temporary, short-term and conditional, and can not be long-term, permanent and absolute. But in China, due to the small number of listed companies, small-scale, not share in the national economy, the rises and falls of the stock index does not reflect the overall state of the national economy, and mainly reflect the degree of market speculation. In other words, in the early stage of market development, the stock market rises and falls mainly due to the excessive speculation of the market participants.
commentator's article stressed that the stock market rises and falls, regardless of the investor, or the social consequences are quite serious. Plummeted, many institutional and individual investors disagree, they are unanimous years in Hong Kong is to be returned and 15th to be held, the government must take the economy doing a good job, absolutely will not let the stock market fall from the stock market boom will inevitably bring. This is an estimate of the stock market is very confused view. The government put economic well be true, but certainly not in the stock market crash to prop up the market, also child care can not afford the city. Investors can not have any illusions. Investment in the stock market, at your own risk, money contented loss, which is the same in any country. The current stock market to a very abnormal situation, gave birth to a growing market risk, investors need to attract enough attention.
commentator's article for the current do the the eight work: first, to further strengthen the supervision. Second, continue to publicly address the violation. Third, the implementation of the system of price limits and improve the market information disclosure system. Fourth, the establishment of the securities industry ban into the system. Fifth, strengthen risk management. Sixth, to increase supply. Seventh, do a good job of guiding public opinion. Eighth, the implementation of a centralized management system. All localities and departments not acting on their own intervention in the stock market, to be consistent with the Central, and consciously safeguard the unified national securities market management system, implement the principles and policies of the national securities market, maintain a good market order and social stability of the local.