IPO Registration System Will Speed Up The Marketization Of Capital Market

Li Keqiang, premier of the State Council, clearly stated in the executive session of the State Council that we should "pay close attention to the reform plan of registration system for stock issuance, cancel the continuous profit conditions of stock issuance, and reduce the threshold for listing small and micro enterprises and innovative enterprises".

Just a few days later, in November 24th, the State Council announced the abolition of 67 professional licensing and recognition matters, including the examination of the qualification of the sponsor representative. This means that with the reform of the registration system, the management of the sponsor representatives will be shifted from prior approval to supervision after the event.

On November 28th, Zhang Xiaojun, a spokesman for the China Securities Regulatory Commission, said that according to the deployment of the Central Committee and the State Council, the securities and Futures Commission, led by the securities and Futures Commission, led the establishment of the "stock issuing registration reform working group".

Insiders generally predict that the registration system will be more likely to be launched in the next year, because the premise of the registration system is the amendment of the Securities Law mentioned by Xiao Gang, chairman of the securities and Futures Commission.

Although the real implementation of the registration system remains to be amended by the securities law, the change brought by the registration system to the capital market can be expected. The listed companies may no longer be scarce resources. Even if they are not favored by investors, even if they are registered, the issuance may fail, and rationalizing the relationship between market functions and government regulation will help to release the vitality of the capital market.

Li Yongsen said that since the beginning of this year, China has promulgated a series of policies, including the reform of new shares, delisting, and the merger and reorganization of new regulations. The regulatory system with registration system as the center is taking shape. At present, the key to registration is to undertake legal responsibilities for registration information.

The revision must be followed, and the penalties for breach of contract or false information should be clarified.

There is a view that "

It is equivalent to no censorship ". In fact, the change of stock issuance from approval system to registration system does not mean the reduction of the issuing standard or the relaxation of supervision. At the same time, it also puts forward higher requirements for supervision and punishment, such as delisting system, punishment mechanism, investor compensation system, active litigation system and so on, and information disclosure is the key.

Li Yongsen mentioned that

After the registration system reform, the SFC will no longer carry out substantive examination of the past key contents of the enterprise's profitability, whether there are related pactions, and leave the contents to the investors to decide for themselves. However, the SFC's responsibilities will undergo a fundamental change if it still maintains the compliance audit.

This requires the establishment of a declaration system, information disclosure system, and the content of information disclosure will become the focus of supervision. The issuer should be responsible for the information disclosed. The SFC needs to shift more energy from prior examination and approval to investigate and punish market irregularities, and maintain the openness, pparency, integrity, authenticity and efficiency of the information, and maintain fairness and impartiality in the market order.

At present, the formal implementation of registration system still needs time to improve the relevant legal system and regulatory system. The next step is to improve the issuing system, investor protection and compensation mechanism, compulsory delisting and integrity system, and so on, in order to guarantee the smooth launch of the registration system and achieve the expected goal in the light of the false disclosure and fraud issuance compensation and the stock repurchase and delisting after issuing the fraud.

Zhang Xiaojun, a spokesman for the securities and Futures Commission, also stressed that "next step, the SFC will speed up the revision and improvement of the supporting business rules, further promote the integrity of the market and fulfill the duties of all parties, enhance the crackdown on illegal activities, and promote the healthy and orderly development of the market."

Li Yongsen also stressed that the United States and Hongkong and other countries and regions have established a sound registration system, which can be run in a high speed and orderly way through the corresponding institutional constraints. Many successful experiences can be drawn from these mature capital markets. The preparation of the system is not the biggest problem in the registration system, but the adaptability of investors should be considered. The psychology of the market is equally important. Too fast and full liberalization and rash advance is not conducive to the interests of investors, nor is it conducive to the IPO registration system of China's capital market.

"Marketization reform is a long-term process and goal, and needs to be progressively promoted."

He said so.