Only enterprises can be listed on the stock market, and the three major Chinese telecom operators are not real enterprises, so it is logical for the NYSE to delist them. China’s three major telecom operators cannot be called enterprises from the three aspects of capital source, operating entity and administrative monopoly, so such organizations are indeed not suitable for listing on the NYSE. The delisting of the company is a move by the NYSE to confess its sins and repent, making the right decision for the long-term survival of the stock market.
It is common sense in economics that the capital of China’s three major telecom carriers comes from the government without exception, and none of this capital is private property, while the capital of an enterprise must be and can only be private property, and non-private property cannot form an enterprise. If the government funds an enterprise, then the enterprise is essentially a government agency, not an enterprise, even if it is called an enterprise. So, the three major Chinese telecom operators are actually government agencies, and the listing of three government agencies on the NYSE is indeed not a market action, but a government action. When the NYSE first accepted such a listing plan, it was itself undermining the market economy and messing up the stock market. Private capital can be used for trading, but how can the government use it for trading? Corporations can divide themselves into a number of stakes for trading, but how can the government do so?
The idea of government funding comes from taxes and inflation, both of which are predatory in nature, neither of which is free money. Such an institution listing on the NYSE would pose a great moral hazard to the stock market, both for the NYSE and for shareholders. Moral risk is not easily perceived in normal times, but once exposed it is an avalanche of devastating blows, so it was extremely unwise for the NYSE to agree to the listing of China’s three major telecom operators, or perhaps the NYSE itself has a moral crisis. The New York Stock Exchange and shareholders rarely consider ethical factors when trading stocks, which also caused a great crisis in the U.S. stock market, the New York Stock Exchange delisting of China’s three major telecom operators in the objective role of reducing the risk of the U.S. stock market, the stock exchange does have a responsibility to shareholders in the ethical level of the gatekeeper, the stock exchange needs to investigate the financial background of listed companies.
The three major Chinese telecom operators are not run by entrepreneurs, there are indeed professional managers running the three organizations, but the ultimate decision making power is still in the hands of government-appointed personnel, who are actually government officials. How can there be government officials in charge of an enterprise? In charge of the enterprise must be the entrepreneur, the enterprise’s judgment choice is the judgment of the future market, and any choice of the entrepreneur is to their entire property as collateral, once the error of judgment entrepreneurs will lose their fortune. The decision makers of China’s three major telecom operators are made according to higher officials and national policies, and even if the judgments they make are completely wrong, they will not involve their entire fortune, and at most, they will leave their jobs and leave. Such an institution will not take shareholders and the market as its ultimate home, and it is not in the interest of shareholders to trade their shares on the stock market.
If the NYSE were to deal with government officials instead of entrepreneurs, then the NYSE would largely lose its stock market nature, which would threaten the NYSE’s position on the global stock exchange and, of course, the U.S. leadership in the global market economy. If one of the parties to a transaction on the stock market is an entrepreneur, and if one of the parties has a government background, then the transaction will certainly be conspiratorial in nature, and the transaction will inevitably have a political purpose. A business is made up of real and living people, and its operators will of course determine its nature. It is too bizarre to have an organization of government nature listed on the NYSE, and the NYSE needs to be the gatekeeper for shareholders in this regard, to clean up the stock market.
China’s three major telecom operators can form an administrative monopoly, only government agencies have the power to form an administrative monopoly, any enterprise is impossible to do, the strength of the enterprise is huge can not order the government to form an administrative monopoly for themselves. There are only three telecom operators in China, and all three are split from one another, and the government does not allow any private enterprise to be a telecom operator, which is a naked administrative monopoly. It is not market behavior for the government to fund a telecom operator and for the government to protect the operator it has established. The NYSE can only provide stock trading for private companies, and once it provides a trading venue for non-private companies, it loses its own stock trading function.
Any enterprise that forms a monopoly by government power is not suitable to be listed to trade its shares, because the existence of this enterprise already violates the principle of free trade, and how can an enterprise that loses the nature of free trade freely sell its shares? The stock market must be a free market, otherwise the valuation will definitely be manipulated, then the stock market becomes a stock casino, and the listed companies are the bankers. The enterprises traded in the stock market must be free competition enterprises, free competition can create new effective value for shareholders, otherwise shareholders will become fish meat on the table. And once there is an administrative monopoly in the stock market, it is a kind of unfair competition for other enterprises, which will suffer tangible and intangible blows, and the stock market volatility is bound to be stronger.
If China’s three major telecom operators had been able to list on the NYSE, it would have been a greater disservice to all Chinese consumers, and they would have had more capital to govern consumers, which is a great injustice and injustice. The fact that China’s telecom market has remained a monopoly has a lot to do with the fact that China’s three largest telecom carriers have been able to survive, and as long as they do not generate a threat, there will be no dawn of openness in China’s telecom market. The NYSE has supported the survival of China’s three major telecom operators in the past, and has been feeding them more fresh blood, and they are growing and developing, so the NYSE has made an indelible contribution to the closure of the Chinese telecom market, and it is good to see the NYSE going back.
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