Good News Brokerage Investment Bank Profit Model Will Change.

In March last year, Xiao Gang was appointed chairman of China's "a href=" http://www.91se91.com "SFC" /a ", which has been in the past year for a whole year." P "

During this year, China's capital market has undergone major changes, and the registration system is undoubtedly one of the most watched hot spots.

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< p > November 30, 2013, the SFC issued the opinion on the reform of the IPO system, which marked the IPO opening again for more than a year, but for the broker, it not only meant that the cost of underwriting sponsorship was long, but also entered the bag for security. More importantly, the reform of the registration system was getting closer and closer, and the test faced by the securities investment banks was also becoming more and more serious.

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< p > "prospects are bright, registration system implementation is certainly no problem, but the details should be considered, for example, where the right to audit is placed, and the exchange audit is also the SFC audit."

Liu Junhai, executive director of the Securities Law Research Association of China law society, said in an interview with our reporter.

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< p > < strong > registration system reduces the main role of securities companies < /strong > < /p >

Xiao Gang, chairman of the China Securities Regulatory Commission (CSRC), recently joined the delegation of the Anhui delegation of the National People's Congress to deliberate on the work report of the government. He said that in 2014, the task of the SFC in 2014 is to study the reform of the registration system of new shares, which can be completed within the year, in conjunction with the the third Plenary Session of the 18th CPC Central Committee government work report.

But he stressed that the formal implementation will not be implemented this year until the securities law is amended.

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Bian Xiaoyu, a researcher in the financial industry of CIC, said in an interview with our reporter: "the registration reform of IPO is a heavy blow to the stock market reform. The huge impact on the entire capital market can not be ignored, and the securities companies bear the brunt of it."

The reform of registration system will reduce the main role of securities dealers, and their business composition and source of income need to be adjusted.

At the same time, this is also a huge challenge for brokers. There are huge economic benefits in the process of internal adjustment and business optimization. "

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As early as November 15, 2013, the Central Committee of the Communist Party of China issued the "a href=" http://www.91se91.com/news/index_q.asp "decision" /a "on several major issues of deepening the reform in the Central Committee of the Communist Party of China. The decision clearly pointed out that we should improve the financial market system, promote the registration reform of stock issuance, and promote equity financing through multiple channels.

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< p > Xiao Gang said that the IPO audit system is a gradual process.

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< p > registration system refers to the disclosure of all information and information related to the issuance of securities by the issuing applicant according to law, which is made into a legal document and sent to the competent authority for examination. The competent authority is only responsible for examining whether the information and information provided by the applicant is a system of information disclosure obligations.

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< p > compared with the approval system, the characteristics of the registration system are that under the system, the securities issuance examination institution only conducts a formal review of the registration documents, without making substantive judgments.

If the mode of disclosure is appropriate, the securities regulatory authority shall not refuse to register by issuing the price of securities or other conditions unfairly, or because the company's prospects are not reasonable.

Registration system advocates afterwards control.

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< p > in the industry view, the core of the registration system is as long as < a href= "http://www.91se91.com/news/index_cj.asp" > Securities < /a > the material provided by the issuer is not false, misleading or omissions, and the risk is borne by investors.

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< p > "registration system reform needs the revision of the securities law. It needs a series of supporting reform measures and gradual adaptation and pition of the market." Zhu Jian, President of the Western securities, said that from the perspective of protecting small investors, the approval system to registration system can not be carried out step by step, but a gradual and gradual deepening process.

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< p > "there are many misunderstandings about the registration system in the market at present."

Insiders told the media that the initial understanding of the registration system is not perfect, and even many investors wishful thinking that registration system will be a complete regulatory audit to give way to the market, which is not the case.

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< p > "accuracy, comprehensiveness and timeliness should be audited, but not to judge the investment value and continuous profitability of the company. This is the real right to the market and the right to investors."

Xiao Gang said that this is the core of the SFC's registration system reform.

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At the same time, while the relevant departments are unswervingly carrying out the registration system reform, they will also strengthen the supervision of information disclosure. P

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< p > < strong > the good news of investment bank < /strong > < /p >

< p > Bian Xiaoyu, a researcher in the financial industry of CIC, said to the reporter: "registration system reform is good news for investment banks. Investment banking will get more attention. There will be more connections between ordinary enterprises and investment banks. The profit model of domestic investment banks will also change, and it will focus more on the related business of listed companies.

In the past, the position of investment banks in the financial industry is always underestimated and neglected. The implementation of registration will greatly enhance the influence of investment banks. "

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< p > Dong Dengxin, director of the financial and Securities Research Institute of Wuhan University of Science and Technology, pointed out that after the registration system was implemented, the main energy of the supervision department was pferred from the IPO audit to the perfect market supervision, and the focus of law enforcement was pferred to afterwards supervision and information disclosure.

The registration system will reduce the threshold of IPO and improve the efficiency of new issue, which is consistent with the reform idea of the State Council's administration and the abolition of the examination and approval system.

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< p > "on the one hand, the reform of the stock market launched the listing of the stock IPO project, which is conducive to the substantial growth of the investment banking business in 2014.

On the other hand, the registration system will increase the speed of issuing IPO projects in the future, and the number of investment banks is expected to increase.

A listed brokerage industry analyst said that the reform of the registration system would help the development of the securities companies with strong comprehensive strength, which would give the securities companies the pricing power, the right of placing shares, and the reduction of the price of new shares, which might lead to a decrease in the income of single underwriting fees.

However, taking into account the positive increase in the income of underwriting fees, such as the increase of sponsor responsibility and the difficulty of raising the underwriting, it is expected that the decline in the income of the single underwriting fee will be eased.

For investment banks and other securities companies with strong comprehensive strength, it will be expected to improve institutional customers' stickiness and market share.

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< p > at the same time, data show that the current global implementation of the complete registration system is mainly in the United States and Japan, while in Europe and Hongkong, China implements the approval system for the exercise of audit rights of the exchange.

From 1999 to 2013, the US initial issuance rates and refinancing rates were higher than those in Europe, Asia and China.

On the IPO rate, the US underwriting rate before the financial crisis in 2008 was 3 percentage points higher than that in China. After that, it still fell at a higher level, while the rate of refinancing in the United States kept at 3.5%, while the rate in China was 1.5%-2%, and the European rate of approval system was also lower than that in the United States.

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< p > some analysts believe that from the above data, it confirms that the investment banking system under the registration system obtains a higher issuance cost income through more professional and efficient services. At the same time, it shows that the professional competence of investment banks in pricing, sales and risk management will become the decisive factor for the development of investment banks in the future.

In addition, under the registration system, the < a href= "http://www.91se91.com > financing > /a > business scale is significantly higher than the refinancing scale under the approval system.

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