How to develop and improve China's current capital market

Yi Xianrong

from two thousand and nineteen year one At the end of this month, the Shanghai Composite Index started from the bottom two thousand four hundred and forty The point slowly rises and finally arrives two thousand and twenty-one year two month nineteen Day up to three thousand seven hundred and thirty-one In two years, the index rose by 53% The Shenzhen Component Index and the GEM Index have increased by an astonishing amount, reaching 72% and 111% 。 The Chinese stock market began to prosper, and creating a slow bull pattern in the Chinese stock market has become the basic expectation of the management and the market.

Therefore, under the new growth model of economic growth, how to develop and improve China's capital market has become a hot topic that the current management and the market are very concerned about. For example, in the proposal of the 14th Five Year Plan, the tasks proposed are:“ We will fully implement the registration system for stock issuance, establish a regular delisting mechanism, and increase the proportion of direct financing. " This requirement not only means that the task of China's capital market reform is very heavy in the coming years, but also means that China's capital market will undergo essential changes. We can see that, two thousand and seven Year to two thousand and nineteen In, except in two thousand and fifteen The Shanghai Composite Index rose to five thousand one hundred and seventy-eight Beyond, the Shanghai Composite Index has been two thousand and five hundred Point around and hover low until two thousand and nineteen Only after the launch of the registration system of the Science and Technology Innovation Board in was the domestic stock market in good cheer. After many managers of the CSRC took office, they made many efforts to the development of the Chinese stock market, but the Chinese stock market is like an unsupportable Ah Dou, and has never prospered. Even from the last century ninety Since the emergence of China's stock market in the s, China's stock market index has been completely disconnected from, or even deviated from, the rapidly growing economy. Why? Just in the early years, despite many institutional reforms of the securities market, the low degree of marketization of China's securities market has not improved, and excessive government participation and regulation of the securities market can be seen everywhere.

The modern securities market is an advanced form of the financial market, and the stock is a quasi currency. If the degree of marketization of the securities market is too low, it is impossible for it to develop and prosper. Because, in the case of excessive government leadership in the modern securities market, it will not only lead to excessive government participation and intervention in the market, but also the credit of the securities market will be fully guaranteed or fully implicitly guaranteed by the government. The allocation of financial resources is not guided by price signals, but by government power. In this case, the parties in the securities market will certainly own the proceeds of their actions and transfer the costs of their actions to the society, leading to the prevalence of speculation in China's securities market and the failure of impersonal credit relations. If there is no impersonal credit in the modern securities market, and the credit traded in the securities market is the credit guaranteed by the government or the personalized credit, then this market can neither effectively price the credit risk, resulting in the distortion of the market price mechanism, nor can it form the modern legal and judicial system and sound corporate governance structure required by the securities market.

two thousand and nineteen In, Shanghai Stock Exchange set up the Science and Technology Innovation Board and tried out the registration system for new share issuance. This is an unprecedented major reform of China's stock market, and it is also the most critical step towards marketization of China's stock market, with milestone significance. It is also from two thousand and nineteen Since the beginning of, although the development of China's securities market has faced a very complex and harsh external environment, it has still come out of the difficult market situation for many years The comprehensive implementation of the stock issuance registration system has laid the foundation. because The trial implementation of the registration system for the issuance of new shares on the Science and Technology Innovation Board will comprehensively affect various behaviors of the entire Chinese stock market. Whether it is listed companies, intermediaries, government regulators, or investors in the stock market, their behaviors must change with the reform of the new stock issuance system, and thus form a new ecology for the sustainable development and prosperity of China's stock market, The impersonal credit relationship necessary for China's securities market can also be gradually generated in this process. This is the key to the healthy development of China's securities market. Therefore, it is imperative for China's securities market to fully implement the new share issuance registration system.

The question now is, is China ready to implement the reform of the registration system for stock issuance? The government supervision department will think that the stock issuance will be fully implemented The registration system has strict standards and procedures. In all aspects of acceptance, review, registration, issuance and trading, more attention will be paid to the authenticity, comprehensiveness and timeliness of information disclosure, the quality of listed companies, the stimulation of market vitality and the protection of investors' rights and interests. In other words, the pilot of the registration system of the Science and Technology Innovation Board has laid the foundation for the full implementation of the registration system of stock issuance, and formulated a series of corresponding market laws and regulations according to the requirements of marketization, which can ensure the effective operation of the stock market under the registration system. But actually To make the registration system of stock issuance take root in China's stock market, there are still many major institutional problems to be solved. First, we should fully implement the stock issuance registration system in China's stock market and let it take root. The basic system of China's stock market should be adjusted and improved. Because the comprehensive implementation of the stock issuance registration system is not only More attention should be paid to the authenticity, comprehensiveness and timeliness of information disclosure in each specific link such as acceptance, review, registration, issuance and trading. More importantly, it depends on whether there is a fair and just trading environment in the stock market, whether there is an effective market price formation mechanism, and whether there is a compensation system for investors whose interests are damaged. In terms of these aspects, this not only involves the question of whether the current legal system in mainland China is suitable for the comprehensive stock issuance registration system. For example, whether the American class action system can be established in China. Without these basic institutional arrangements and reforms, just adopting the registration system in the operation link of the stock listing and adopting new market rules, the comprehensive implementation of the stock issuance registration system may also deviate from the goals set by the system. In addition to the obstacles encountered by serious institutional dependence, more efforts should be made to form the ecological environment of China's stock market registration system. This is the key and difficult point of the future reform of China's securities market.

The second is the governance structure of China's listed companies. As a mixed ownership economy, China has both private and state-owned enterprises. As far as the corporate governance structure is concerned, most of the corporate governance structures of private enterprises are not standardized in management and too tightly integrated with the government. This requires a set of stricter standards to improve the corporate governance structure of private enterprises and make them become truly public companies after listing. For the corporate governance structure of state-owned enterprises, the governance structure of those state-owned enterprises dominated by the government may be the same as the governance structure of government administration, allowing major shareholders to hold absolute power. If this absolute power cannot be restricted, many problems may arise. Because the absolute power without restriction is easy to generate many problems with serious defects in the corporate governance structure. For example, Lai Xiaomin, the former chairman of China Huarong Asset Management Co., Ltd., has become such a serious corrupt bureaucrat. The biggest problem is that its absolute power is not restricted. Although such companies are also listed companies, their corporate governance structure is the same as the government's governance structure. The company's host has mastered the absolute power and this power is not restricted. It can be said that even if such a company is listed, it cannot become a market-oriented public company. This is also the current A Stock market, or Hong Kong H The stock market and the stock prices of state-owned listed companies are basically at a very low level.

Moreover, we usually believe that more high-quality companies can be listed by fully implementing the stock issuance registration system. In fact, it is not very important whether a listed company is a high-quality company, because as long as the company's governance structure meets the requirements of the stock issuance registration system, as long as the stock market price mechanism is effective, the quality of the listed company will be fully reflected in the stock price. Good listed companies sell at a high price, while poor listed companies sell at a low price or even nobody cares. The best case is the abnormal disparity of stock prices of listed companies in Hong Kong stock market. Therefore, promoting the improvement of corporate governance structure of Chinese enterprises through institutional arrangements is the prerequisite for the full implementation of the stock issuance registration system. However, there are many problems in the governance structure of China's state-owned listed companies.

Third, the system and rules are always incomplete. In the face of incomplete institutional rules, whether there is a corresponding legal system that is constantly reformed and improved to achieve the balance between principled supervision and adaptive supervision. As far as the current legal environment of China's stock market is concerned, there are many problems to be solved. There are not only the question of how to formulate the legal rules corresponding to the registration system, but also the question of how to establish a set of procedures for real public decision-making, rather than the question of making laws only by departments. If the system rules are completely from the government departments, it is easy to lead to sports supervision.

Fourth, China's securities market is still operating under the approval system. If the stock issuance registration system is fully implemented, China's securities market will change from the approval system to the registration system, which will face a series of institutional, legal, conceptual, interest and other obstacles. These obstacles can easily lead to market behavior under the registration system. In other words, under the registration system of stock issuance, the behavior of the entire listed companies, regulatory authorities, intermediaries and investors has not changed much, which may also make the companies listed in the registration system become a new market tool for money. Therefore, the establishment of a normalized delisting mechanism is an important institutional guarantee. However, this kind of securities market mechanism is not only to formulate system rules, but also to have the corresponding regulatory system and judicial system firmly implemented, so that the interests of small and medium-sized investors can be truly protected from infringement and more investors can enter the market.

Thirdly, the consensus of the market is to change the financing structure of China's financial market, increase the proportion of direct financing, and let more non bank institutions, such as funds, securities VC 、 PE , leasing, trust and other venture investments to support the development of China's scientific and technological innovation, which is an important condition for building an innovative country. For example, there are many innovative enterprises and high-tech enterprises in the United States, because the United States has a highly prosperous capital market. In fact, this is just a case of the United States. In Germany and Japan, the financial system is also dominated by commercial banks, and the proportion of innovative enterprises and high-tech enterprises is also high. Therefore, under the initial conditions of China's existing financial market structure, the full implementation of the stock issuance registration system is not to increase the proportion of direct financing and quickly change the structure of China's current financial system, but to“ To build a self reliant and independent technological power ", create financial conditions to enable Those who know risk, accept risk, and can effectively price credit risk participate in investment activities, promote the development of innovative enterprises, so as to realize the optimal allocation of resources. Otherwise, it is easy to lead to the structural adjustment of sports direct financing, resulting in low efficiency of financial resource allocation. For example, after many listed companies have raised a large amount of funds in the stock market, they are not used to increase enterprise investment, or let the funds flow into the financial market to "make money", or buy a large number of housing, which is a very obvious case. Due to China's unique financing system, the growth of indirect financing is far faster than that of direct financing. In this case, it is almost impossible to change the proportion of China's current financial structure in the short term without direct intervention by administrative means to prevent indirect financing.

In short, fully implement the stock issuance The registration system is a major institutional reform of China's stock market. It is an important part of whether China's stock market can continue to develop healthily in the future, and has milestone significance. However, to make the reform of China's securities market system successful, a series of system reforms are needed, especially the major reform of China's basic stock market system. These major market based institutional reforms are not simply transplanting some mature legal systems and market rules from the European and American markets, but require gradual evolution under the existing institutional conditions in China, and a comprehensive transformation of the government's regulatory functions, so that the government can participate directly and withdraw from the market with implicit guarantees, This is the key to ensure the gradual development and prosperity of China's stock market in the future. China's stock market has taken the step of a bull market, and the government is going to ensure that the bull market of China's stock market moves slowly through a series of market reforms.