Registration System: Market-Oriented Reform Direction

The core of the registration system is that the materials provided by the securities issuers are not false, misleading or omissions, and even if there is no investment value, the competent authorities have no right to interfere.

Real and comprehensive information disclosure will provide investors with sufficient information to judge the value of an enterprise, and whether it is worth investing should be determined by the market.

Over the past year, regulators have introduced a number of policies to pave the way for the implementation of the stock issue registration system as soon as possible. Another major institutional reform in China's securities market following the split share structure reform is accelerating in an all-round way, and the entire capital market is heading for an increasingly market-oriented way.

Li Yongsen, Professor of Finance and Securities Research Institute of Renmin University of China, said in an interview with the China Economic Times reporter that registration system reform is the general trend and is in line with the general direction of the current market-oriented reform.

The reform of stock issue registration system is to enable the stock market to operate in accordance with market rules, so as to achieve effective docking between capital and the best companies, so that companies that really need capital can get effective capital allocation, which will help market funds tilt to high-quality enterprises.

The biggest obstacle in the process of marketization of China's stock market is the excessive administrative intervention in stock issuance, which has been a lot of problems in the implementation of the stock market in China. As a result of only one trial committee, the audited rhythm is controlled at the regulatory level. The situation of "a thousand armed forces across a single timber bridge" leads to many companies listing on the one hand. On the other hand, some companies use public relations, packaging and other means in order to "jump the queue", resulting in a lot of companies' performance after the listing, which makes the capital market "chaotic", making the capital market "chaotic", and many companies that really need capital to expand R & D or strategic mergers and acquisitions do not get social capital.

The registration system emphasizes the market oriented free investment and financing requirements.

The key to return to regulation is to improve and optimize the framework of the IPO system, and whether the value of investment will be entirely judged by the market.

Li Yongsen believed that in the third Plenary Session of the 18th CPC Central Committee, the market should be set up in the allocation of resources.

The essence of registration system is marketization, which helps to reduce some real audit thresholds, and when companies will be listed will be decided by the capital market.

The introduction of registration system of stock issuance can meet the financing needs of different types of companies and the investment needs of the corresponding investors to a maximum extent, and to a certain extent, increase the number of public offering companies and the trading needs of different levels of the stock market.

Some experts said that the implementation of

Reform can not only promote the low cost and convenience of IPO financing, but also improve the function of capital market. The game between investors and listed companies will play a leading role in balancing the supply and demand relationship in capital market.

At the same time, the implementation of registration system is likely to alleviate or fundamentally solve the long-standing problems such as IPO queuing problems, selective information disclosure, new stock issuance trial black holes and fraudulent issuance of illegal liability in the more than 20 years of the Shanghai and Shenzhen A share market.