ABC break: In fact, the surface of a prosperous banking crisis-ridden.

<P> ABC cap shoes, during the arduous Battle of the issue price after the last break. .</ P> <P> break the Agricultural Bank of great symbolic significance, indicating that the financial deleveraging in full swing, traditional mode of production has been difficult to sustain. .</ P> <P> ABC should have a break, the bank imposed too strict protection measures, contrary to the laws of the market is unfair to other investors. .Some people think that the low valuation of financial stocks, but the price level of the option should be left to the market, not by the four King Kong escort; also suggested that ABC below the issue price will hit investor confidence, but there is no reason to believe that the importance of the Agricultural Bank .higher than other large banks. .</ P> <P> more serious is that, after the media disclosed in CICC, CITIC Securities, Guotai Junan, Agricultural Bank of China Galaxy Securities, the four major underwriter support the market, their behavior can support the market to enjoy the special treatment - free of commission .. .This is a blatant provocation to the market rules, regulatory authorities in China to crack down on insider trading, and to restore market order, such behavior is intolerable. .Agricultural Bank of China listing is a good governance structure in order to become a public company, rather than become a sign of non-market securities, institutions risk-free arbitrage in the Agricultural Bank of China's securities market has become a big joke. .</ P> <P> break the Agricultural Bank is the product of financial deleveraging. .Surface due to reduced funding to support the market, support the market costs increased. .Ended September 15, ABC asked a sharp reduction in the single-Nearly half of the more recent, the market refused to pay commission pay ABC rumors, break, when just 5 minutes, turnover of up to 339 million, seems not groundless rumors .. .To Oct. 15, the ABC network under the institutional placement to a total of 5,032,000,000 shares of the shares lifted, representing the actual flow of A shares is currently about half of ABC affiliates and other non-stock not want to pay for the lifting of the ban. .</ P> <P> more importantly, the global financial sector deleveraging in the ascendant. .Not only the ABC, BOC, CCB, ICBC and other banks were hit intraday lows. .</ P> <P> look at the world situation. .Transformed into a financial crisis, the two surviving traditional bank Goldman Sachs and Morgan Stanley fell from Lehman, "death" when counting, the stock has dropped 10% decline in the S & P 500 Index equivalent to the same period .KBW / Philadelphia Stock Exchange, large commercial banks covered by the bank index fell by one third. .</ P> <P> that's not all, with the introduction of Basel II, the bank's leverage ratio will be subject to strict constraints, they no way in the past, use of asset securitization indefinitely elongated lever .through the trading of toxic products for profit. .Global banks, especially European banks capital adequacy ratio must be added, the scale may be hundreds of billions of dollars. .This was a compromise after the parties dispute the data, some financial experts believe that the bad debt after the financial crisis, ordinary shares in a normal year the proportion of risk-weighted assets should reach 12% of the minimum requirements in order to stand up to the financial crisis hit..