Article/Sina Financial Opinion Leader Column (WeChat official account kopleader) 40 person forum
The introduction of the registration system will not be completed in one step, which is actually a statement on the management of short-term expectations. Next, we still have a long way to go in terms of trading system, market system, regulatory system and investor appropriateness management.
Finally! Here comes the registration system!
Today, President Xi Jinping announced in his keynote speech at the opening ceremony of the Expo that "the Science and Technology Innovation Board will be set up in Shanghai Stock Exchange and the pilot registration system will be set up". This may be the most important statement of the senior management on the capital market recently How should we understand?
Science and technology innovation board and registration system
First, explain two concepts.
Science and technology innovation board
Its full name is "Science and Technology Innovation Board", which was launched in Shanghai Equity Trusteeship Trading Center at the end of 2015. In nature, the Science and Technology Innovation Board belongs to the OTC market of Shanghai Equity Trusteeship Trading Center; in terms of positioning, the Science and Technology Innovation Board is mainly aimed at the market that has not yet entered a mature stage but has good growth potential, meets relevant norms and has a relatively significant "four new" Technological and innovative SMEs with economic characteristics.
The Science and Technology Innovation Board of Shanghai Stock Exchange Center sets optional listing conditions for start-ups and growth enterprises, emphasizes the content of scientific and technological innovation for start-ups, emphasizes the growth of growth enterprises, and introduces certain financial indicators such as operating income, profit, market value for enterprises in the later growth period to improve the coverage of enterprises in different life cycles.
The establishment of the Science and Technology Innovation Board in Shanghai Stock Exchange this time is of great significance for building a multi-level capital market. The Science and Technology Innovation Board will inevitably compete with the NEEQ and the GEM, but only competition can form a more dynamic capital market pattern.
Registration system
The registration system refers to a system in which the applicant for securities issuance publicizes all information and materials related to securities issuance according to law, makes legal documents, and submits them to the competent authority for review. The competent authority is only responsible for reviewing whether the information and materials provided by the applicant for securities issuance fulfill the obligation of information disclosure. Its most important feature is ：
Under the registration system, the securities issuance examination institution only conducts formal examination on the registration documents, and does not make substantive judgments. If the disclosure method is appropriate, the securities regulatory authority shall not refuse to register on the grounds that the price of the securities issued or other conditions are unfair, or the company's prospects proposed by the issuer are unreasonable. The registration system advocates post control. The core of the registration system is that as long as the materials provided by the securities issuer are not false, misleading or omitted, even if the securities have no investment value, the securities authority has no right to interfere, because voluntary deception is considered to be the inalienable right of investors.
At this point, I have to mention our IPO system. The IPO system of domestic stock market has experienced from the "quota system" in 1992 to the "channel system" in 2001, and then to the "approval system" in 2006. In December 2015, the original plan was to officially implement the registration system, but at that time, the news of the registration system had an impact on the market and the implementation was blocked. On February 24, 2018, the 33rd meeting of the Standing Committee of the Twelfth National People's Congress decided to extend the authorization decision period of the stock issuance registration system by two years to February 29, 2020 。 The process of registration system reform was not as expected.
Why Shanghai Stock Exchange?
Liu Shiyu, the chairman of the CSRC, said at the beginning of his term of office that "the registration system is the institutional cornerstone for the long-term healthy development of the capital market" and clearly stated that "it must be implemented". Today, the registration system, which has suffered many hardships in China, has finally opened. Why did the pilot choose Shanghai Stock Exchange?
To answer this question, I'm afraid we should start with the premature death of the strategic emerging board. As early as September 2013, the Shanghai Stock Exchange had begun to discuss and study the establishment of the strategic emerging board, and reported the establishment request to the CSRC at the end of the year. According to the public data, the strategic emerging board will follow the overall institutional framework of the registration system, follow the market-oriented and information disclosure oriented approach, and implement the registration system for enterprises applying for listing on the emerging board and enterprises applying for refinancing in the future, with due consideration given to simplifying the issuance process.
so The strategic emerging board was originally designed on the premise of the registration system 。 Although for various reasons, the strategic emerging board was deleted in the revision of the draft of the 13th Five Year Plan, the Shanghai Stock Exchange has, to some extent, the foundation and conditions for the reform of the registration system. Li Yongsen, director of the Institute of Finance of the University of Chinese Academy of Social Sciences, believes that the enterprises included in the science and technology innovation board launched this time have similar life cycles and industrial fields with those of strategic emerging board enterprises, and it is reasonable to launch it as a pilot registration system.
The head of China Securities Regulatory Commission said in his reply to reporters today that the Science and Technology Innovation Board aims to complement the weakness of the capital market in serving scientific and technological innovation. It is an incremental reform of the capital market. The so-called "incremental reform" means that the stock structure is not touched, which greatly reduces the resistance to reform For the "hard core" of registration system, it may be a smart way to start with incremental reform.
In addition, it is particularly urgent for China, which is transforming from factor driven growth to innovation driven growth, to strengthen scientific and technological innovation enterprises. However, based on the overall listing rate and listing rate, the proportion of sci-tech innovation enterprises in China is still low. The pilot registration system on the sci-tech innovation board is expected to create a good environment for the development of sci-tech innovation enterprises.
The registration system reform cannot be delayed any longer
After President Xi Jinping's speech today, the GEM fell back, reflecting some concerns about the implementation of the registration system.
The market's worries mainly focus on two aspects: first, after the registration system, there will be a large number of companies listed, leading to the decline of the index; Second, after the implementation of the registration system, the high premium price of small cap stocks will be broken, the market valuation will return to rationality, and the speculation space will become smaller. But from the first point of view, there is no evidence that IPO will bring down the stock market price, and every time a large enterprise issues, investors will oppose the expansion of new shares for immediate interests. From the second point of view, the transition from the approval system to the registration system is bound to have an impact on the market valuation, thus affecting the market sentiment and interest pattern, which also needs time for the market to digest. If the supervision only considers the short-term feelings of the market and looks ahead and backward, slows down or even dares not to carry out reform, then the long-term adverse effects that may occur in the future will be greater.
Of course, the A-share market does not have the conditions to fully implement the registration system at this stage, but this is also the reason why the pilot project should be implemented first. President Xi Jinping's speech today just shows that the introduction of the registration system will not be completed in one step, which is actually a statement on the management of short-term expectations. Next, we still have a long way to go in terms of trading system, market system, regulatory system and investor appropriateness management.
(The author of this article introduces that the China Finance 40 Forum (CF40) is an unofficial and non-profit professional think tank, which is positioned as a new type of "platform+entity" think tank and focuses on policy research in the economic and financial fields.)
