On August 3, 2015, Chen Peixiong, a researcher at the Guangdong Industry Development Institute, published a commentary in Hexun stating that few understood the reason for the failure of the Chinese stock market. He proposed that competition among multiple stock markets might save the Chinese stock market.
In the commentary, Chen held that the Chinese stock market is not a stock market. Therefore, any attempts to analyze, administer, and rescue the Chinese stock market by applying economics and stock market theories would be doomed.
Chen said that one should go beyond the stock trades and should see whether the stock market moves with the economic trends. A stock market serves as an economic barometer of a country and its existence is conditioned upon whether it is consistent with the economic trends. It is totally nonsensical to say the Chinese style stock market is irrelevant to the Chinese economic trends. The problem with the Chinese stock market lies in the design of the rules or mechanisms. As a planned economy, China can regulate and monitor the stock market to the maximum extent, but it will have no effect.
Chen recommended either allowing multiple stock markets to compete or to design a stock market outside the constraints of the current system.
Source: Hexun, August 3, 2015