The SFC Will Discuss The Registration System Reform Thoroughly To Study The Balance Between IPO Supply And Demand.

China Securities Journal reporter learned that the SFC is still studying the registration system reform. Xiao Gang, chairman of the securities and Futures Commission, recently hosted a learning conference, inviting Li Xiaojia, chief executive officer of Hongkong exchange, to introduce Hongkong's market system and discuss reform. Xiao Gang said that we need to conduct in-depth research on the balance of supply and demand in IPO market and the development trend of stock issue registration system.

Subsequently, the SFC will conduct several thematic studies on this topic. Analysts believe that registration reform is difficult to achieve overnight, and needs further research to identify the reform path. The State Council executive meeting, on the six initiatives to further promote the healthy development of the capital market, first pointed out: "we need to actively and steadily push forward the reform of stock issuing registration system, speed up the construction of multi-level stock market, encourage market mergers and acquisitions, improve the delisting system, promote the efficiency of listed companies, and enhance the ability of continuous returns to investors." It can be expected that the effective promotion of the delisting system is one of the important conditions for the successful registration system reform.

　　 Focus on IPO Supply and demand balance

In addition to introducing the market situation in Hongkong, Li Xiaojia specifically discussed the evolution of IPO market structure and the implementation of registration system. In his view, IPO has no natural particularity. The balance between supply and demand is the basis of market equilibrium. The imbalance between supply and demand is the root of all imbalances. Breaking the vicious circle will inevitably bring about short-term pains. Compared with the US and Hongkong markets, the proportion of mainland retail investors and institutional investors is small. The total market capitalization of securities accounts for a small proportion of GDP, and the gap between banks and insurance business is too large, which makes it difficult for regulators to get rid of the dilemma of "pipe pricing", "control structure" and "cake sharing". Registration system to return the market to the market, so that the normal supply and demand relationship between the market determines the market game and the distribution of interests, is an important means to change the IPO ecosystem and bring the market to rebirth and rise. Registration system will impact on the existing market logic and interest pattern, and the pains brought by it will inevitably be underestimated.

For Li Xiaojia's elaboration, Xiao Gang said that the registration system is not exactly the same in different countries and regions, but some of the points mentioned are worth further study, such as IPO Market supply and demand balance, stock issue registration system development trend and so on.

The information disclosed at the meeting showed that in addition to this study, the SFC plans to organize several thematic studies to understand the experiences and practices of other countries and regions in implementing the registration system.

In an interview with the media, Xiao Gang once said that registration system does not mean that no trial is allowed, and that junk stocks can be randomly distributed. The IPO registration system in different countries and regions of the world is not exactly the same. However, there is a basic characteristic that the issue should be centered on information disclosure. That is to say, securities regulators should examine the accuracy, comprehensiveness and timeliness of information disclosure of issuers, but do not judge the company's investment value and continuous profitability. One of the important tasks of the SFC in 2014 is to study the reform of the registration system of stock issuance.

　　 Delisting system Reform needs to be synchronized.

Insiders said that the effective withdrawal of the delisting system is one of the important conditions for the successful registration system reform. The SFC has repeatedly said that once a listed company touches on the delisting standard, it will implement the delisting. Analysts said that the future delisting will gradually normalize.

Zhuang Xinyi, vice chairman of the securities and Futures Commission, once wrote that in mature markets, whether it is compulsory delisting or independent delisting, they all belong to normalization. Whether or not a listed company is delisting is the result of the choice or demand of market participants and market organizers. It is not an absolute criterion for judging a company's good or bad. In the future, the SFC will deepen the reform of the delisting system. First, we must enhance the certainty of compulsory delisting, strictly enforce the existing delisting standards and strengthen market expectations. In view of the high degree of market concern and strong repercussions of major illegal activities such as fraud and listing, we should resolutely eliminate such companies and purify the market under the framework of laws and regulations. The two is to increase the selectivity of active delisting, enrich the way of independent delisting, eliminate institutional barriers, and provide diversified space and diversified paths for listed companies with independent delisting needs. At the same time, we should use comprehensive measures to increase the cost burden and market pressure of poor quality companies, and guide them to withdraw from the market. Three, internal and external governance, multi pronged approach, improving the delisting environment, optimizing the institutional arrangements for delisting companies' stock trading, asset restructuring, re listing, etc., to strengthen the accountability and accountability of listed companies from the beginning of market access, and to investigate the delisting insurance mechanism, establish compensation, compensation and reconciliation mechanisms, and integrate the protection of investors' rights and interests in the delisting process into the investor protection system of the capital market.