American listed companies have strong profitability. Many listed companies in the US stock market are high-tech enterprises. Because of its core technology, it is in the upper reaches of the industrial chain and has strong profitability. Take apples for example. In the field of mobile phones, Apple's profit exceeds 70% of the global industry, while China brands such as Huawei and Lenovo cannot compete with Apple in technology, and their market share and operating profit cannot stand at the same height.
From the operating indicators, the average net profit margin and return on equity of listed companies in US stocks are 6. 1% and 10.9% respectively, while the average net profit margin and return on equity of listed companies in A shares are 4.2% and 6.6% respectively. After deducting the influence of inflation rate in the past 30 years, the average annual inflation rates in the United States and China are 2.7% and 10.3% respectively. Finally, the average return on equity of listed companies in the United States is about 8.2%, while the average return on equity of listed companies in China is negative.
The trend of the stock market is closely related to the profitability of listed companies. The profitability of A-share listed companies is not as good as that of US stocks, and the performance of the stock market is naturally not as good as that of the United States.
The supervision system of American stock market is perfect and the punishment is severe. The illegal cost of American stock market is very high. If there is market manipulation such as sitting in the village to raise the stock price, the listed company will directly withdraw from the market and the parties will face criminal punishment. On the other hand, in China, the financial data is false, and the incidents of executives cashing in through insider trading frequently occur, but the responsible person can escape legal punishment by means of property transfer and nationality change early.
Under the strict supervision system, American listed companies have complete information disclosure and more standardized trading operations. Although the American stock market has gone out of a decade of slow bull market, many stock prices have also hit record highs one after another, but almost no important shareholders have cashed in. This shows that the American market is better managed than the China market, and it is also an important reason for the sustained and healthy development of its stock market.
The US stock market also has a strict delisting system. At present, there are about 150 listed companies in the United States every year, and about 400 companies are delisted every year due to mergers and bankruptcies. Therefore, the number of listed companies in the US stock market is decreasing year by year, and enterprises with substandard management can only leave the securities market. Investors' funds can be concentrated in companies that stay in the stock market, and the index is higher and higher.
In the years of the development of China stock market, only about 2% of all listed companies actually delisted, excluding bankruptcy and reorganization. The probability of delisting after listing is very low, which also leads to the lack of fighting spirit and ambition of the management of listed companies.
The American economy is developing strongly. Before the global epidemic broke out in 2020, the performance of the American economy was remarkable. 10 years, GDP has remained at around 2%. Relatively stable economic growth has also driven employment and created many jobs. The unemployment rate in the United States has been relatively low until 2020. Coupled with the US dollar interest rate hike policy, global capital began to return to the United States, which pushed up the growth of stock prices to some extent.
To sum up, the American stock market can get out of the bull market in the past decade, which is related to the overall strength of American listed companies, the perfect supervision system of American stock market, strict punishment measures and the economic situation in the United States in recent years. In the past few decades, the price level and GDP growth rate in the United States have been basically stable, and the securities industry supervision system has been continuously improved, which are the basis for the long-term growth of US stocks.
The long-term improvement of the stock market is also closely related to the strong promotion of the US science and technology sector and development. Only the technology sector contributed more than 20% to the increase of the S&P 500 index. America is a market that promotes consumption. Citizens have no concept of saving, so they spend money if they have money. The stronger the desire for consumption and the higher the quality of consumption, the better the American economy will be. Banks are also willing to let people spend in advance through loans.
Under normal circumstances, stimulating consumption can increase the income of enterprises, and the increase in profits of listed companies can further promote the stock price to climb, so the stock market can be maintained. However, such an economic environment is also flawed, that is, people have no savings, and the economy will be turbulent when they encounter social risks. This year's global epidemic is a heavy blow. Up to now, the American stock market has maintained an upward trend, which is inseparable from the good operating foundation of listed companies themselves.
In order to develop China stock market healthily, we need to learn from the strict market system of the United States, exert the deterrent power of delisting system, promote the management and development of high-quality enterprises, and make investors and financiers achieve a win-win situation in the stock market.