In the past six months, China's stock market has been "arrogant".

According to statistics, with the Shanghai Composite Index as an example, since the beginning of July 2014, the largest cumulative increase in index has reached 55%, which has already surpassed the same period of increase in most of the major markets in the world.

In the current round of rising prices, the financial sector is quite eye-catching.

Among them, since the launch of the brokerage sector, the cumulative increase has exceeded 200%, and the insurance sector has increased by 100%.

As for the large proportion of banking sector, there has also been the biggest increase of more than 55%.

In fact, the sudden blue chip market also hinted earlier when Guo Shuqing acted as chairman of the China Securities Regulatory Commission.

During the chairman of the China Securities Regulatory Commission (CSRC), Guo Shuqing repeatedly stressed the cash dividend policy, and many times affirmed the investment value of blue chips.

At the same time, he encouraged shareholders to adhere to the concept of value investing and become China's Buffett on many important occasions.

Less than two years later, the stock market has surged in recent years, and the rise of blue chips also confirms Guo Shuqing's view at that time.

However, in this blue chip market, investors who can really earn money are not in the majority.

Obviously, the concept of value investing has been distorted in the domestic stock market for many years, and the blue chips which are still in the bottom of the long term have not become the object of concern for most investors.

When it comes to value investing, we have to think about the cash dividend policy.

Generally speaking, the higher the cash dividend ratio of a country's securities market, the easier it is to reflect the core value of the market.

It is undeniable that in recent years, the share of cash dividends in China's stock market is showing an increasing trend year by year.

According to statistics, in the past 2010-2013 years, the number of listed companies engaged in cash dividends was 50%, 58%, 68% and 75% respectively.

From the change of average dividend yield of A share listed companies in recent years, the overall dividend yield of key industries such as finance, electricity and mining is obviously higher.

Among them, the average dividend yield of the financial and electricity sector has remained at a high level for many years.

The main varieties of the current market are observed. Among them, the financial and electric power sector is relatively prominent.

They all share the common characteristics of high dividend yield and low price earnings ratio.

Obviously, the current blue chip market has adapted to the management mentality to a certain extent.

High dividend yield is an advantage.

However, in the domestic stock market, because of the relatively high amount of red profits tax, the core value of blue chips has long been ignored by the market.

Therefore, the advantage of high dividend yield has not been favored by the market.

What is more, it is caught in the embarrassment of "high dividend yield and high tax burden".

In 2005, China began to impose a half dividend on the stock dividend tax, and the adjusted tax burden was 10%.

In January 1, 2013, in order to encourage investors to invest for a long time and invest in value, China began to implement differential dividend tax policy.

According to specific policies, the tax burden of holding over 1 years is reduced to 5%; the tax burden held at 1 months to 1 years is kept at 10%, that is, keeping unchanged with the original level.

However, when the shareholding time is within 1 months, the tax burden should be raised to 20%, that is, double the original level.

In fact, there is a problem of "reducing the amount of tax increase" in the collection of differentiated red profits tax in China.

Among them, investors who operate frequently in the short term do increase the cost burden.

Throughout the mature stock market, the pattern of red profits tax is different.

Take the Hongkong stock market as an example, the dividend tax was abolished as early as 2011.

However, for mainland enterprises listed in Hong Kong, a 10% dividend tax should be levied.

Take the US stock market as an example, the US stock market adopts the principle of differential levy on the dividend tax, and its collection mode gives more value tax preference to value investors.

The purpose of differential red profits tax is to encourage value investment in the market and promote the healthy development of the market.

However, in practice, there is a problem of "reducing the amount of tax increase".

In this regard, I believe that for a long time, China basically levies dividend tax on the after tax profits of listed companies.

The problem.

In addition, taxpayers who pay red profits tax belong to individual investors.

However, for institutional investors, they can enjoy preferential treatment of corporate income tax exemption, which has brought some injustice to ordinary investors.

Although some mature stock markets in the United States and other investors also adopt differential dividend tax collection mode for investors, however, because the local market has a mature and stable market system, it also brings long-term and stable return on investment for value investors.

Obviously, this is an important basis for the Levy of the dividend tax.

On the contrary, at home

There are still many loopholes in the construction of the relevant system, and the market can not give long-term returns to value investors.

Therefore, under the current background of encouraging value investment by management,

It really affects the enthusiasm of value investors.

Therefore, the author believes that at present, China's securities market does not have the market basis for imposing a dividend tax. In the future, the policy of levying profits tax should be phased out.

As a result, it not only brings more imagination to the market, but also promotes the atmosphere of market value investment to a certain extent.