"Chinese Type Registration System" Can Make China'S Securities Market Stand Up To Itself

< p > following the decision of the Central Committee of the Communist Party of China on several major issues of deepening reform in the third Plenary Session of the 18th CPC Central Committee last November, after the establishment of a sound multi-level capital market system and the reform of stock issuance registration system, the government's work report this year listed the registration system reform of stock issuance as the focus of 2014.

In a recent public speech, Xiao Gang, chairman of the China Securities Regulatory Commission, revealed the following information: "we should make a Chinese style registration system in accordance with China's national conditions and push forward the reform process of China's securities market."

This is an important measure to further improve the multi-level capital market system, give play to the investment and financing function of the securities market, and protect the rights and interests of investors.

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< p > however, whether the "Chinese style registration system" can fundamentally improve the "Chinese style" stock market, and truly undertake the important task of effectively allocating resources, creating, accumulating and distributing wealth for the society, as well as the "weathervane" of the macro economy, has always been a worry in the minds of all circles.

I believe that the answer to this question is yes.

The reform of the "Chinese registration system" will make the "Chinese style" securities market self reliant and independent, step onto the right track of development, and play a normal role.

This is because the reform is different from the previous repair system in the distribution system. It is also different from the past "some of the" half a face "and a step back of the admittance system reform. Instead, it is a revolution from the securities market regulators to facilitate its genuine return to the market.

However, it needs to be pointed out that it is precisely because of the profound nature and far-reaching influence that this reform will decide that it will not be a work done at the end of its work.

After all, the main aspects involved in the reform will take time to pition and adjust.

For example, regulators need time to adapt to the role change of giving up and returning from the stage to the background; the securities market also needs time to become mature from immature to assume responsibility; investors also need time to return to reason and distinguish and treat securities investment and speculation correctly.

All this takes time and cannot be accomplished overnight.

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< p > because of the special history and national conditions, the establishment of China's < a href= "http://www.91se91.com/news/index_c.asp > < < /a > > is not the result of the natural evolution of asset securitization, but because of the original intention of the government to alleviate the financing difficulties of state-owned enterprises at that time. As a result, China's securities market has some fundamental chronic diseases from the beginning of its establishment, for example, state-owned shares and corporate shares do not participate in circulation, and share the same rights and shares with other shares.

Although China's securities market has grown into adolescence for more than 30 years, these inherent diseases are only partially cured, and the problems are still serious: first, excessive packaging.

The listed companies are relying on public relations strength to list some of the risky assets that are mediocre or even hidden.

Second, interest collusion.

Issuers and intermediaries raise excess capital through conspiracy of interests.

Third, power rent seeking.

Under the current IPO audit system, the discretion of the issuance examination and approval committee is too large, resulting in serious power rent seeking.

Fourth, the implementation of the new stock issuance process (i.e. non marketization) leads to the hidden trouble of IPO barrier lake in the primary market. This phenomenon is particularly serious in the GEM market.

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In order to clean up these problems, China's securities market regulators have taken a series of measures, including the very severe "shock therapy", which will close the floodgates of IPO for more than a year in the past P years.

However, "a" href= "http://www.91se91.com/news/index_c.asp" > IPO < /a > the first listed company appeared an "orex" incident, which made investors' confidence in regulators and securities markets hit hard again.

This proves once again that the practice of coercion the market by administrative means, even if its starting point is good, the execution is in place, and the final result can only be proved to be "doing the right thing", rather than "doing the right thing".

So, how to "do the right thing" for the purpose of "doing the right thing"? In fact, the "Chinese registration system" reform to be launched this time opens the answer to this question.

Registration is essentially market determinism, which is "de administration" for the market. It is believed that the core mechanism of the market can play a role in allowing market participants to make their own judgments and take corresponding responsibilities. Under this system, regulators are more likely to serve as institutional suppliers and market watchmen, rather than appearing as risk endorser and market interventionist.

Only in this way can the development of the market be more consistent with the development of the asset market.

This is like guiding a teenager in the right direction. The elders can only set an example of behavior norms that conform to the social order and good morals. Let him judge himself in accordance with the norms, and point out his deviations when necessary. The consequences of the actions are borne by the actor himself, rather than the promise of his elders to the outside world, he will be a good boy, and then act in a deviant era of his behavior, and finally let go when things are out of order.

Only in this way can we cultivate an ignorant teenager into a promising young man who is self reliant and self reliant.

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< p > I believe that the reform of < a href= "http://www.91se91.com/news/index_c.asp" > Chinese registration system < /a > has a long way to go to achieve the above goal, and it is necessary for regulators and other policymakers to apply the superb wisdom and precise technology to do the following aspects: first, establish and improve the system of "telling the truth" of listed companies.

It is necessary to strengthen the system construction with the core of supervision and information disclosure.

This is the core of the whole registration system reform, because only when the listed companies "tell the truth", investors and the market can have the basis of judging the true value of listed companies, so that they can have confidence to make their own judgments, so as to pave the way for the "right to market".

Therefore, regulators should take investors' demand as guidance and unite with other policy makers to formulate a set of system and supporting measures that can check the accuracy and comprehensiveness of information disclosure of listed companies.

Second, regulators should adjust their role as soon as possible.

Regulators should turn from auditors of listed companies to auditors of information disclosure of listed companies.

The focus of supervision should also be shifted from the pre regulation of IPO to the post regulation of securities crime in the two tier market.

Third, cultivate the "immunity" of the stock market.

This "immunity" depends mainly on the healthy short selling force in the market. We should do a good job in the education of small and medium-sized investors, so that the healthy investment philosophy, prudent investment and the principle of buyer's conceit are deeply rooted in the hearts of the people.

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