When talking about India, many people will immediately think of the word "Asan". This word is not very friendly to India and even has a bit of a mocking meaning.

Coupled with the well-developed Internet in China, all kinds of weird things in India have been reinforced in the minds of the people in China, and eventually the various weird "magic operations" of "Asan" have become the impression of most people about India.

In fact, India is not as bad as everyone imagines. At least there is one thing that makes us feel ashamed, and that is the Indian stock market.

When talking about the Indian stock market, one index that must be mentioned is the Indian SENSEX30 index. In the past 10 years, the index has risen by 288%. This achievement is hard to find a rival in the world. The Dow Jones Index in the United States has only risen by 174%, and the well-performing Nikkei 225 Index has risen by 226%.

Let's take a look at our own Shanghai Composite Index and Shenzhen Component Index. Ten years ago, the Shanghai Composite Index was 2,300 points, and now it is 2,969 points, an increase of 29%. This increase may not even catch up with the inflation rate in my country. The Shenzhen Component Index was 9,500 points 10 years ago, and now it is 9,553 points, which is almost stagnant.

As a stock investor, who doesn’t want to trade Indian stocks instead of A-shares?

You may think that the Indian stock market has only performed well in the past 10 years, and our A-shares have also had a glorious past. In fact, the Indian stock market has not only improved in the past 10 years, but has been doing well in the past 30 years, with an increase of 100 times. Such a high increase will really make A-shares feel ashamed.

So the question is, why is the Indian stock market so strong? Why don’t A-shares perform so well?

First, the Indian stock market has a long history. The development history of the Indian stock market is even longer than that of our country. It can be traced back to 1875, when our country was still in the Guangxu period and the power was in the hands of Cixi. Not to mention the stock market, the country has already fallen apart. However, India at that time was not much better than us, and had become a British colony. Considering the needs of economic development, 22 stockbrokers established the Bombay Stock Exchange (abbreviated as: BSE) in reference to the "Sycamore Agreement" of the New York Stock Exchange. This is also the earliest stock exchange in Asia. The long history of stock exchanges is destined to make the development of the Indian stock market more perfect than that of our country, because they have already stepped on the pits we are stepping on. After all, human nature is unchanging, and no one is smarter than anyone else.

Second, the Indian stock market is a bulk stock market with fierce competition. When people mention bulk provinces in China, the first thing that comes to mind is Jiangsu, which is known as the "Thirteen Guardians of Jiangsu". Each city is unwilling to submit to the other and often fights for itself. Nanjing, as the capital of Jiangsu, has no status at all, because in terms of GDP, it cannot compare with Suzhou. Since Nanjing is relatively close to Anhui, it is often mistaken for the capital of Anhui.

What about bulk countries? The United States is one, and India is one of them. Since India is a country that has been colonized for a long time, the economic development levels of different regions vary greatly. In addition, India has strong religious characteristics and the characteristics of state autonomy. This makes India look like a big country that cannot be ignored, but in fact it is an extremely divided country.

As far as stock exchanges are concerned, India has dozens of them. Each exchange calls itself "India's NASDAQ" or "India's Dow Jones". In 1992, India established the Securities and Exchange Board of India, which was modeled after the US SEC. The Indian stock market began to become more market-oriented and more transparent. Currently, India still has 23 stock exchanges, which compete with each other.

If you were the head of an exchange, how would you attract companies to list and trade there?

First, you need to be able to raise funds. Second, the stock market is active and it is easy to cash out when you want to.

In fact, as long as there are enough stockholders in the exchange, stock trading will be active and companies will easily raise funds. But how can we attract these stockholders to invest? The answer is to let them make money from it, which forces the person in charge of the exchange to think about how to make investors make money. The simplest way is to let the stock index go up all the way, and the money-making effect will naturally occur, and more stockholders will come to invest here. Read on, the following three points are very important, and they are also the basis for the 30-year bull market in the Indian stock market.

Third, when a company delists, it must repurchase all the shares used for financing. There is no penalty for domestic listed companies to delist due to business failure. However, India requires delisted companies to repurchase all the shares used for financing. This makes many listed companies afraid to do whatever they want, otherwise the company will inevitably die without a burial place.

Fourth, retail investors are subject to the T+0 system, while institutions are subject to the T+3 system. The simple time difference reduces the possibility of institutions taking advantage of information asymmetry to cut leeks, because retail investors have higher flexibility. Once they find that they have been deceived, they can quickly sell the stocks to reduce losses. However, institutions cannot do this and will be stuck. This also requires institutions not to conduct arbitrage transactions frequently, so that stockholders are less likely to be harvested.

Fifth, if a company commits financial fraud, it will be fined directly to bankruptcy. Why do many A-share companies dare to commit financial fraud? Because if they are found out, they will only be fined up to 600,000 yuan, which is a drop in the bucket compared to the tens of billions of yuan they can easily cash out. Although my country has also increased the amount of fines for financial fraud, it is far from the level of bankruptcy, and there are still companies that dare to take risks. India does not give these dishonest companies any chance and directly kills them with one blow.

I have to criticize our big A here. But looking at the current Bitcoin BTC, forget it!

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