Can The Amendment Of The Securities Law Protect The Registration System?

According to the "government work report" made by Premier Li Keqiang in the "two sessions", "the implementation of the stock issue registration system reform" will be an important work of China's stock market this year. From the statement made by Chairman Xiaogang in the "two sessions", the implementation of the registration system will be completed and implemented by the securities law. Once the new securities law is formally implemented, the registration system can be implemented.

But whether the new securities law can guarantee the registration system reform is a matter of great concern to investors. From the media coverage, registration reform will not only lower the right of IPO audit to the exchange, but also the threshold of IPO listing will be substantially reduced, even allowing deficit companies to go public. Therefore, investors can not help but worry that the quality of IPO will further decline, and more garbage companies will be flooded with the stock market. To this end, investors are looking forward to the securities law currently under revision, hoping that the new securities law can guarantee the registration system reform.

However, whether the amendment of the securities law can protect the registration system is a problem which investors are very concerned about. It is not only related to the success or failure of registration system reform, but also to the real interests of investors. From the speech delivered by Yin Zhongqing, vice chairman of the finance and Economic Commission of the National People's Congress, on the revision of the securities law in the "two sessions", the amendments to the securities law mainly solve five major problems. Namely, promoting the reform of stock issuing registration system, improving the multi-level capital market and improving investors. Protection system We will promote the innovation and development of the securities industry and strengthen supervision afterwards. Due to the lack of more detailed contents, it is still a mystery whether the amendment of the securities law can afford to protect the registration system.

In my opinion, whether the amendment of the securities law can guarantee the registration system reform depends on three aspects. First of all, whether the amendment of the securities law helps to improve the existing stock market system? For example, according to the provisions of the current securities law, one of the conditions for the listing of stocks is that the shares that are publicly issued will reach more than twenty-five percent of the total shares of the company. The total share capital of the company exceeds RMB four hundred million yuan, and the share of the public offering shares is more than ten percent. It is precisely this regulation that led to the "dominance" of the listed companies, resulting in a large number of size and non existence, resulting in the stock market becoming the size of the non cash machine. If this problem can not be solved, there will be more size in the registration system than in the stock market, and the stock market will lose blood forever.

Therefore, the amendment of the securities law must solve this problem, and further stipulate the reduction of the size in the matching system, such as stipulating that the major shareholders and executives of the performance loss company shall not reduce their shares, and stipulate that when the controlling shareholders' shares are as low as 25%, the shares held by them can only be transferred to other legal persons who are willing to take over the management and operation of enterprises through the transfer of block trading or OTC agreements. In order to avoid companies losing money, the shareholders have already lost their shell, or the large shareholders have left an empty shell for the market.

Secondly, Securities Law The amendment must increase the punishment for illegal and criminal acts. According to the information disclosed by Vice Chairman Yin Zhongqing, the amendment of the securities law will strengthen afterwards. supervise 。 But this is not enough. From the point of view of market regulation, it is meaningless merely to strengthen supervision afterwards. If we can not increase the investigation and punishment of illegal and criminal acts, then strengthening the supervision afterwards is a waste of money and will not play any role in punishing illegal crimes. In fact, it is only a means to strengthen supervision afterwards. One process is to lay stress on illegal and criminal acts. In particular, under the circumstances of carrying out the registration system reform, we can not rule out that all kinds of fraudulent practices will become more common, and the listing of packaging will become more rampant. Therefore, the new securities law must allow fraudulent listers to directly withdraw from the market and compensate investors for their losses. Meanwhile, they should also investigate the criminal responsibility of the counterfeiters, so that the counterfeiters will be bankrupt and secure. This is a necessary condition for the registration of the Securities Law (including the amendment of the corresponding provisions of the criminal law).

In addition, the amendment of the securities law must effectively protect the legitimate rights and interests of investors. According to the information disclosed by Vice Chairman Yin Zhongqing, the new securities law has added a special chapter on investor protection, which is worth affirming. However, investor protection is limited to the establishment of an appropriate investor system, a pre payment system, a new public commitment and cash dividend system, a perfect shareholder derivative litigation system and a representative litigation system, and still dare not face up to the class action system. This kind of investor protection will be lame, and the new securities law will also be difficult to guarantee the important task of escorting the registration system.