Chen Dongzheng: Suggestion To Relax The Listing Standard Of Gem

When talking about the delisting system differently during the two sessions last year, Chen Dongzheng, chairman of the CPPCC National Committee and chairman of the Shenzhen stock exchange, talked more quietly and "retreats", emphasizing the understanding of the reform and innovation of the capital market.

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However, behind this understatation is the rapid expansion of the Shenzhen Stock Exchange launched by the gem over the past two years, as well as years of intensive research on the delisting system and refinancing system of gem. The delisting framework of the gem has been set, and the refinancing audit authority is expected to be devolved to the Shenzhen stock exchange. Everything is innovation and everything is a breakthrough.

In addition, as the head of the board of supervisors of GEM companies, the proposal put forward in this year's proposal for gem is to lower the access conditions of gem, and further expand the scope of support for innovative enterprises.

This will undoubtedly bring huge imagination to the market.

Decentralization of refinancing audit authority

With the reform of IPO system becoming the top priority of the securities market regulators this year, relevant discussions are becoming more and more heated with all kinds of assumptions.

Chen Dongzheng pointed out that the international practice is generally the exchange audit. "Our current trial system also needs to go step by step. The proposal of the Shenzhen stock exchange is to take the first step -- the right to examine and approve the refinancing of small and medium-sized enterprises."

It points out that the reason for choosing this as the first step is that, first of all, the Shenzhen Stock Exchange as a front-line regulatory system understands the enterprises. These refinancing enterprises are under the control of the whole system of the Shenzhen Stock Exchange. Secondly, the refinancing of small and medium-sized enterprises requires a small amount of money, and the current refinancing is almost the same as that of IPO, which makes it easy for SMEs to refinance and miss the market opportunities.

He disclosed that the approval authority for refinancing of SME boards and small and medium-sized boards has been initially agreed to the exchange, but there is no specific timetable.

More importantly, the decentralization of the approval authority for SMEs' refinancing represents the way to explore: it is the first step in the reform of the distribution system.

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Suggestion to broaden the listing standard of gem

As a member of the CPPCC National Committee and the head of the Shenzhen Stock Exchange, Chen Dongzheng is particularly important for proposals related to the gem.

In this regard, Chen Dongzheng appears to be more daring. He proposed in this year's proposal to adjust the conditions for issuing the gem, reduce the demand for sustained growth in performance, expand the coverage of the gem industry, improve the diversity of the gem industry, and timely cancel the profit requirements for the enterprises with strong independent innovation capability.

On the first point, he pointed out that there were two sets of performance indicators in terms of issuing conditions for gem: the first set of indicators is "continuous profit in the last two years, and the net profit in the last two years is not less than 10 million yuan, and has continued to grow". It is recommended to abolish the requirement for continuous growth of net profit; the second set of indicators is "the profit in the latest year, and the net profit is not less than 5 million yuan. The operating income of the recent year is not less than 50 million yuan, and the operating income growth rate in the recent two years is not less than 30%". It is suggested that the specific growth rate of operating income should be abolished, and only the operating income will continue to grow.

And in the proposal

It is worth noting that Chen Dongzheng told reporters that it is recommended to amend the relevant provisions of the securities law at the appropriate time, cancel the profit requirements for IPO with strong independent innovation capability, and enhance pparency of information disclosure, so that the market can independently judge the growth and profitability of enterprises.

"Gem is now more than two years old, the child has grown to a certain stage, it is time to run to the school, so this standard should be lowered to suit the reality of the development of small and medium enterprises and innovative enterprises in our country."

He pointed out.