Registration Reform May Take Two Steps.

　　 First step: before the end of June 2015, we will fully resume 2009. IPO Reform practices.

Specifically, the abolition of the SFC's "suspension of IPO" or "restart of IPO" privilege, the implementation of IPO rhythm, the abolition of the SFC's "window guidance" for the pricing of IPO, the implementation of IPO pricing, the abolition of the "new market quota" rule, giving all investors equal rights to fight new rights, and the abolition of the "synchronization with IPO". Stock issue "Abolish the restrictions on the first day of IPO and abolish administrative intervention or control over IPO. During the period from June 2009 to October 2012, the reform of IPO system in the A share market has been sticking to the above practice. Registration system reform First of all, we should take the lead in restoring the above practices.

　　 The second step: before the end of December 2015, the relevant amendments will be completed, and the SFC and the stock exchange will be divided into labour forces.

1 through the revision of the securities law, the legal status of the registration system is granted, and the boundary of the SFC's list of powers and responsibilities list is authorized to authorize the SFC to register and examine the IPO, and authorize the stock exchange to conduct the listing examination and substantive examination of the IPO. At the same time, we should further clarify the legal responsibilities of issuers and securities intermediaries, including sponsors, underwriters, accountants, auditors and lawyers, to IPO. In addition, in the criminal law and civil law, the amendment to the provisions of the securities crime should also be increased to be punished and enough deterrent.

2 the SFC is responsible for registration and examination in the IPO segment. In the registration examination, the SFC does not judge and endorse the asset quality and investment value of the enterprise, nor is it responsible for the authenticity of the information disclosure, but it is responsible for the completeness, consistency and comprehensibility of the prospectus. At the same time, the SFC will also cooperate with relevant departments to formulate IPO negative list and exercise the veto power of registration examination.

The so-called IPO negative list mainly includes labor standards social security payment or less payment, environmental standards emission is not up to standard, tax standard evasion, tax evasion, tax evasion, credit standard contract breach, judicial litigation, industrial policy high energy consumption, high pollution and so on. All enterprises listed in the negative list of IPO can vote for their IPO application by one vote.

3 the IPO section of the stock exchange is responsible for listing and substantive examination, and independently formulating the listing rules. In the process of listing auditing, the stock exchange establishes the "listing committee" and conducts substantive auditing and questioning on the IPO application enterprises in accordance with the listing rules. That is to say, the focus or focus of IPO audit is in the stock exchange, not in the securities and Futures Commission.

The IPO audit procedures of the stock exchange must be placed before the SFC's registration audit as a necessary condition for registration audit. Only when the stock exchange first goes through the listing audit, can it submit the SFC for registration examination. If the listing is not approved by the stock exchange, it is not eligible to enter the SFC registration audit. Of course, even if the stock market has passed the examination, the SFC can still veto it by one vote. That is to say, the essence of IPO audit is in the stock exchange, and the veto power of IPO audit is in the SFC.

In addition, other supporting reforms after the implementation of the registration system can be implemented after 2015, including the establishment of a class action mechanism to learn from the US experience; the lifting of the stock price limits is the same as that of the Hong Kong stock market; the implementation of the T+0 trading system is the same as that of the Hong Kong stock market; the experience of increasing the innovation and expansion of financial derivatives to learn from Hongkong is extended; the stock market trading time is extended: 9:30 to 12:00 a.m., and the afternoon is the same as that of Hong Kong stocks. This is the tolerance of a big country's stock market.