First Registration Of The Stock Issuing System

The draft amendment to the securities law was submitted to the Standing Committee of the National People's Congress for first instance on 20 th. For the first time, the revised draft made clear the application conditions and registration procedures of stock issue registration from the legal level, and established the legal system of stock issue registration.

There were 338 amendments to the bill, including 122 new ones, 185 amendments and 22 articles deleted. Under the background of the reform of stock issuing registration system, what changes will it bring to such a large and large scale revision? How will it affect the participants in the market?

　　 Securities Law The draft amendment explicitly abolished the stock issuance audit committee system, stipulates that the issue of publicly issued shares and the listing on a stock exchange shall be carried out by the stock exchange. To examine 。 Where an agreement is issued by the stock exchange, it shall submit the registration documents and audit opinions to the securities regulatory authorities, and the securities regulatory authorities do not raise any objection within ten days, and the registration becomes effective.

It's worth noting that draft It is stated that the registration does not indicate that the securities regulatory authority under the State Council has made substantive judgments or guarantees on the investment value or investment income of the stock, nor does it indicate that the securities regulatory authority under the State Council guarantees the authenticity, accuracy and completeness of the registration documents.

The draft revised the conditions of issuance, abolished the profit requirement of the issuer's financial status and continuous profitability, and stipulated that the issuer and its controlling shareholder and actual controller had no criminal record in the past 3 years. The issuer had a company's organizational structure conforming to the law, and the financial accounting report issued in the recent 3 years was issued as a standard without reservation.

Related links:

The goal of enterprise financial management is the fundamental starting point and foothold of the enterprise's financial budget. At present, there are different views on financial goals. There are five kinds of viewpoints: "maximizing enterprise value", "maximizing shareholder wealth", "maximizing earnings per share", "maximizing market price per share" and "maximizing profits". But seriously, we can find the following questions: first, how can these financial goals be achieved? The answer is: only when enterprises achieve profits can they achieve these goals. The two is how to make profits. The answer is: only through the movement of capital can we make profits. If the funds are not moving, enterprises will not be able to make profits if they do not operate. The three is how to make the best and most effective fund movement. The answer is: make the best flow of money in sports.

From the above simple analysis, it is easy to see that the best cash flow is the best choice for corporate financial management. The best cash flow is chosen as the goal of corporate financial management. The reasons are as follows:

(1) from the nature of financial management, financial management is a very comprehensive value management. The characteristics and functions of such value management can not be replaced by other management. The theory of financial management as the core and financial management as the core of financial management is a profound summary of the characteristics and unique functions of financial management and has been accepted by more and more enterprises.

(two) the accounting standards for enterprises - cash flow statement, makes rigid demands for the cash flow information provided by enterprises, requiring enterprises to compile "cash flow statement", which provides a legal basis for determining the best cash flow as an enterprise's financial management objective.

The reason why the state issued the cash flow statement accounting standards is determined by the role of cash flow. Because cash flow information can be used to assess and predict corporate solvency, liquidity, earnings quality and financial flexibility. These four aspects are obviously important for the survival and development of enterprises. Among them, the most important thing is the liquidity of enterprises, that is, the ability of enterprises to generate cash and cash equivalents.

We can see that the capital movement of enterprises and the various aspects of production and business activities in essence should be a realisation process. The capital movement of enterprises began with money capital. After three stages of purchase, production and sale, the capital structure was transformed from the form of money capital into reserve capital, production capital and finished capital form, and finally returned to the form of monetary capital, thus completing the realisation process. The continuity and strength of the process and the speed of turnover also reflect the liquidity of enterprises, and also reflect the quality of assets of enterprises. If an enterprise has a large number of non monetary assets, but if its liquidity is poor, most of which are difficult to realise in the short term, then they will have no positive significance for investors and creditors. For the enterprises themselves, it means that their continuous operation will be difficult, resulting in borrowing new debts or absorbing new investments to compensate for the consumption of various production factors, which is not a good phenomenon for enterprises.

In short, cash represents the comprehensive purchasing power, affordability and wealth of an enterprise. Taking the best cash flow as the financial goal of enterprises is the best choice. This financial goal avoids the defect of maximizing profits. Total profit is only a concept of absolute number. It can neither reflect the profitability of enterprises nor reflect the performance level of permanent capital and liabilities capital, nor reflect the time value of money in profits, or even affect the social image of enterprises. More attention should be paid to the fact that profit maximization and cash flow maximization are not consistent. There is a certain gap between the two. Sometimes there is a serious divergence between them, that is, the sharp increase in profits of a particular enterprise and the sharp decrease in net cash flow. In addition, the total profit can not directly reflect its causes. The profits generated by the normal production and operation activities of enterprises and other activities are often produced and incidentally generated, but only the total profit can not reveal the difference. These are the quality problems of earnings. There is no fixed causal relationship between them and the quantity of profits. To accurately assess the quality of earnings, we must take advantage of other means, such as the cash flow statement. Moreover, the calculation of total profit depends on accounting policies and accounting treatments. If prices and currencies continue to fluctuate, especially when prices are rising for a long time, the matching of production factor consumption with the high income that has been obtained in the past will bring about the result of low cost and virtual profit, which will lead to a series of economic and social problems. The distorted application of the matching principle, such as early or delayed recognition of revenue and arbitrary expenses, will also have an impact on accounting profits. In addition, in accounting practice, the most important reason for accounting information distortion is profit maximization. In order to maximize profits, the responsible person of a company has to force subordinate units or force accountants to adjust figures and falsification. A lot of unprofitable profits occur on the basis of the depreciation mentioned or not mentioned. The amortization costs are not amortized on schedule. In particular, the phenomenon of whitewashing profits by listed companies is even more serious.