How To Avoid Resource Mismatch In Registration System

Financing, asset pricing and optimizing resource allocation are three basic functions of the capital market, but these three functions are distorted to varying degrees. Due to the mistaken positioning of the capital market, the financing function of the A share market has been brought into full play, and the unrestrained "money collection" behavior of the listed companies often leads to the unbearable burden on the market. However, after many reforms of the IPO system, it has not been able to solve this problem. In terms of asset pricing function, because of the "light return" of listed companies, investors can only get profits through the acquisition of the difference price, and the market speculation culture is overflowing. The overvaluation or underestimation of stock valuation is serious. In terms of optimizing the allocation of resources, bad money drives out good currency and market resources mismatch everywhere. The new shares listed last year have also been annotated.

Last year, the Shanghai and Shenzhen two cities listed 125 new shares, but many staged "no bad money" story. Data from flush show that of the 125 companies, 36 had an asset liability ratio of less than 30% at the end of 2013, of which 6 liabilities were lower than 10%, such as our biological liabilities rate was only 4.56%. And currency funds such as Chongqing gas and Shaanxi coal industry also exceed 1 billion 588 million yuan and 832 million yuan of funds raised respectively. These companies with low debt ratio and huge money funds are obviously "not bad money". In addition, some companies made a lot of dividends before listing. For example, Forster landed at the Shanghai Stock Exchange in September last year, and in the 14 month period from February 2013 to 2014 April, it held three shareholders' meetings, and 3 bonus payments were implemented. The total dividend was about 600 million yuan, representing 37.5% of the total fund raised.

On the other hand, some companies that have been listed since last year spend huge amounts of money on financing. Wind data show that in 2014, so far, 186 new listed companies, 60 have bought financial products, involving 22 billion 900 million yuan (including maturity or unexpired), and the 60 companies also raise 29 billion 800 million yuan. More than 70% of its raised funds are used for financial management.

Many companies that are not bad money choose IPO, some because they value the financing function of the capital market, and the invisible advertisements brought about by the appearance of the listing, reputation and talent attraction. Some of them value the development space in the capital market, and some are due to the promotion behind PE. However, the listing of these companies often leads to mismatch of market resources.

In fact, the problem of resource mismatch in the IPO process may be reproduced after the registration system is implemented. In addition to some of the above companies' "not bad money" and IPO, the information disclosed by the regulatory authorities shows that some of the issuers have not changed after many years, and some of the issuers have not changed. Recruitment and investment projects It is purely out of order to meet the issuing requirements; and more companies like Mount Jiuhua have built a rooftop ropeway for their investment projects, and its prospectus shows that the main project of the investment project has been completed and has been transformed, but it has not yet completed the final accounts. Such a recruitment project can also bring "financing", and highlights the seriousness of the mismatch of market resources.

Promoting the registration system reform of stock issuance is a systematic project of "taking the lead and nose". The significance behind it is self-evident. The problem is that the three functions of the capital market can no longer be distorted once the IPO is implemented. Especially for optimizing resource allocation function, if this function is brought into play, in turn, it will promote the normalization of financing function and asset pricing function, so that financing will no longer become a "money trap", and asset overestimation or underestimation will be alleviated.

Preventing registration from coming down the market Resource mismatch I think, first of all, we must make the new shares truly marketable. Regulators do not need to consider factors such as market affordability and so on. The issuer decides when to start the IPO and decides the issuing price by the market. Secondly, we should reform the existing delisting system and reduce the delisting threshold. The company has imposed a mandatory delisting system on the issue of fraudulent issuance and major information disclosure, and prohibits such companies from re listing to plug the loopholes in the existing delisting system. Only in this way can some enterprises be listed on the basis of fraud. Lowering the delisting threshold will help to sweep out the garbage companies and prevent the frequent occurrence of "bad money drives out good money". Third, according to the current train of thought, registration system reform will implement the mode of exchange audit and SFC registration. Implement Registration system It does not mean that new issues need not be audited. Therefore, as the Shanghai and Shenzhen Stock Exchange, although no longer "endorsement" for the performance and investment value of new shares, it should also assume the responsibility for new IPO. Fourth, substantially increase the cost of violating regulations and severely punish violations. The disadvantages of low violation cost should be eradicated with the help of the amendment of the securities law, and substantially increase the cost of violation. This will not only help protect the interests of investors, but also help protect the registration system.