Registration System Itself Is Not Terrible. What Are We Afraid Of?

Registration system is also good.

The approval system is a common form of IPO issued by the world. Each has its own characteristics, each has its own advantages and disadvantages. It has no advantages and disadvantages. (the detailed content is taken as the appendix after the article), so there is no need to worry too much.

According to reports, on the morning of November 20th, the chairman of the SFC, Xiao Gang, assistant chairman Huang Wei, and the leaders of the general office and the issuing department, listened to opinions on promoting the reform of the registration system of stock issuance.

Chairman Xiao pointed out: after the abnormal fluctuation of stock market, the revision of the securities law has been postponed. The State Council may adopt legal authorization to formulate opinions and solve it. We should go all out to register the system in March next year. We must first release the rhythm and then release the price. We will shorten the issuing process (3 to 6 months) and give the enterprise a clear expectation.

At present, this message is not necessarily true.

One stone stirs up thousands of waves, and the applause of the people is endless. It is mainly represented by Dong Dengxin and Dong Shaopeng. Dong Tong Xin believes that the registration system has five advantages to lead the Chinese stock market to the slow bull market. The questioning voice is also an objective existence. It is mainly represented by people such as Hai Hai Chau. The author has always taken a cautious attitude towards the registration system. It is mainly opposed to the registration system of deformation. The registration system and the approval system are just different from the auditing system. There is no difference between the advantages and disadvantages of the registration system, and it can not change the inherent drawbacks of the Chinese stock market. As for the impact on the stock market of China, there is no practical significance in the discussion now, because the concrete scheme of registration system has not come out yet.

But since there are different opinions in the market, I will explain some of my views from an investor point of view.

The main idea is to avoid the reform of registration system.

If the registration system is not improved or even deliberately bent on the introduction of China, its side effects must exist. The United States is one of the representatives of the registration system. The registration system is totally different from China's original intention. The US registration system is the result of selfish considerations of financiers and others. They worry that the excessively severe blue sky rule will weaken the status of New York's financial center. Of course, there are also factors to prevent corruption. Reformers worry that officials are not so reassuring and honest. If the blue sky rule is adopted, it will provide corruption opportunities for securities sales.

The regulatory thinking behind the US registration system is "the best way to protect investors' interests is to control the entry of shares into the market".

Therefore, if the implementation of registration system is to prevent corruption, it is beyond reproach. Because power is too centralized and can not be supervised, corruption is inevitable. As a matter of fact, the auditing officials represented by the trial emperor Yao Gang appear to be corrupt. The SFC will reduce the approval procedures and put the power under the exchange, so that more energy can be released to supervise the market, so as to achieve the separation of supervision and trial.

But China's introduction of registration system is probably not just to prevent corruption, but to reduce the listing threshold and speed up the expansion, which is a bit contrary to the original intention of registration system, because the US registration system supervision idea is "controlling shares to enter the market", of course, it is through false information to disclose the companies listed through fraud.

The implementation of the registration system is to let the new technology industries such as the Internet that can not be profitable be listed, and the other is that regulators do not control the pace of listing and release the issue.

This has a great relationship with the positioning of China's stock market. China's stock market is positioned to support the real economy rather than to allow investors to get profits. Of course, the formulation has changed, and investors need to get good property income and protect the legitimate interests of investors from being infringed, but this can only be placed in second place rather than the first place, and the first is still financing. That is, the downward pressure on China's economy is huge, and the capital market is needed to increase financing. Secondly, China's economy is at a pitional juncture, and the capital market needs more services. Three, bank credit is difficult to sustain, and direct financing risk is increasing.

The market has also been calling for the IPO to restart as soon as possible and accelerate the registration system reform to increase the proportion of direct financing. Therefore, the pressure of capital market financing is at the highest level in history. This is the market's concern.

This is a departure from the US registration system.

The United States is completely different, listing is easy, but after the listing of the cost is huge, cash is not easy, many regulatory, bad will be claimed, the temptation of listing is not so big, so the United States will never appear IPO barrier lake, and the Chinese investors claim the road is difficult to sky, it is the temptation of IPO is too large, resulting in a huge IPO dammed lake, although the Commission has made every effort to increase the speed of issuance, but the barrier lake not only can not be resolved, but more and more big, even if a few years later, until the day lily is cold.

In the four months after the IPO suspension, the SFC added 84 new IPO applications to the IPO. This way, as of November 12th, the SFC accepted 682 of the first companies, of which 47 had already been sold, but not 635.

In the past few years, there were 614 normal trial companies, 21 enterprises were discontinued, and 34 enterprises were terminated.

New market capitalization is expanding for a short time. If the old stock stock is constantly delisting, it can also hedge some of the new market capitalization. However, the delisting system in China is still a castle in the air. The new delisting system has been implemented for more than a year, but several companies have been ordered to withdraw from the market. Recently, the new energy Nouveau, the new energy and the new generation of China's strong wind power generation is not still alive in the market, and many companies with serious information disclosure will not survive in the market.

The US annual delisting rate is about 6%. In such a ratio, the Chinese stock market needs at least 150 more delisting a year, but the problem is 15.

Registration system corresponds to a tough delisting system, and China's delisting system is there, but where is the implementation of it? How can a market that only enter the market carry the pain of registration system?

The reason why the delisting system is nominal lies in the serious lack of investor protection mechanism. Once the delisting will trigger irrational rebound, the SFC will also have many misgivings.

It is precisely because of the lack of investor protection mechanism, investors are very worried about the implementation of registration system, reduce the threshold of listing, reduce the intensity of audit, will lead to many poor companies listed, and hurt the interests of funds, but there are no claims.

This problem is now coming to light.

Pre payment mechanism, but the question is what is a major omission, and what is false statement lacks specific criteria.

The implementation of registration system, in accordance with the mainstream opinion, allows enterprises to choose the timing of their own distribution and get better distribution opportunities. But in China, such a thought is a big mistake. In the past six months as an example, although the securities and Futures Commission has been issuing new shares without delay, who has issued an existing enterprise to get approval and is ready to wait for a good time to issue the launch, all of which are launching the issuing process overnight, for fear that they will have more trouble at night and more trouble.

The reason behind this is that the responsibilities and rights of listed companies are not equal.

This is the taboo of registration system. In such a market atmosphere, once the enterprise obtains the financing license, it will exert all kinds of means, listing and financing, if the market is not controlled, it will lose control.

At present, Shanghai and Shenzhen stock exchange is right.

The competition has become more and more intense, and the Shanghai Stock Exchange has made every effort to launch the strategic emerging technology version, and promised to start the registration system once it is implemented. The purpose is very clear, attracting more companies to go on the market, and the Shenzhen stock exchange is to lower the listing threshold and attract the unprofitable companies to launch the gem. It also suggests that a limited registration system be implemented in the gem. Once the registration system is implemented, the two exchanges will be full of strength and strength, and the pressure of expansion will not be estimated in a short time. The pressure of the market is also unattested, and the psychological pressure of investors can not be estimated.

Under such a market environment, in the face of uncontrolled registration of new stock issue, will the supply of new shares be out of control, will it cause short-term huge pressure, the market anxiety will naturally reveal itself, and the market trend will also bear enormous pressure.

If it is only a matter of resolving more than 600 IPO dammed lakes, it is not very big. But in the US, the stock market in Hongkong has chosen to return to privatization, and the number of listed companies that meet the listing conditions in China will be as many as tens of thousands.

Because the market is short term.

Increments are relatively fixed, and there is no possibility of unlimited growth. Moreover, capital in and out is highly correlated with investors' psychological expectations. Investors expect better, and net capital inflows are more. Investor pessimism leads the market and net outflow of funds is more.

Faced with the overwhelming trend of listing, investors are expected to be good or bad.

Because in Chinese history, investors hate the bottomless coil money most.

I think registration itself is not terrible. Investors need not worry. The worry is the deformed registration system. It is a registration system with the purpose of simply increasing the issuance. It ignores the market and ignores the interests of investors.

It is to improve the system first, then to implement the registration system, or to cross the river by feeling the stones. First, the registration system should be implemented before the system is perfected. The result is different, and the investors' feelings are different.