What Will Be The Registration System To Be Implemented In The A Share Market?

After the decision of the Standing Committee of the State Council to authorize the Standing Committee of the National People's Congress to speed up the implementation of the registration system of stock issuance, many media have widely publicized the title of "registration system". However, I believe that an important attribute must be added to the front, that is, "the book with Chinese characteristics is coming."

What is the registration system? The definition of registration system of Baidu encyclopedia is "registration system".

The principle is essentially a financial disclosure system of the issuing company, represented by the Federal Securities Act.

It requires all companies that issue securities to provide all the information concerning the issuance of securities and the issuance of securities, with the prospectus as the core.

"Under the registration system, when the enterprise issues the shares, when it will be issued and at what price, it will be determined by the market on the basis of truthful disclosure.

The government does not judge and endorse the asset quality and investment value of enterprises, so as to promote the participation of market participants in their respective duties.

A few days ago, Hu Ruyin, chief economist of Shanghai stock exchange, said, "now there are many big data, strategic economic enterprises, such as safeguarding national economic security, network information security and cultural safety. These enterprises are very unfavorable to national security in overseas markets, including leading enterprises in biomedicine and other fields in TMT.

"A large proportion of these overseas listed companies are not profitable, or do not meet the listing requirements under the audit system. We must create conditions to return as soon as possible, which is perhaps the most urgent reason for the registration system to take the fast lane.

A lot of big data, maintenance of national economic security, network information security and other strategic enterprises, in the overseas market for national security is very bad, it is necessary to create conditions to return as soon as possible, which is the most urgent reason for the registration system to take the fast lane.

Then, what will be the registration system to be implemented in the A share market?

First, the SFC is "actively and steadily promoting the issuance of shares."

In the reform, it is clearly stated in the article that "three will not", that is, "registration system reform" is a gradual process, and will not be implemented in one step. The pace and price of IPO will not be released at once, and will not cause large-scale expansion of new shares.

"That is to say, when to issue the new shares and how to issue them at any price, they are under the control of the management and do not take the road of marketization.

It is generally expected that this year's issuance rhythm (10-20 per month, 2000-3000 yuan a year), and the relatively low price IPO will continue in the two years from the "decision to implement".

Why do we propose "three no?" under the registration system? This is the purpose of setting up the stock market 25 years ago.

In order to solve difficulties, there must be indicators, and indicators are scarce resources. In order to fight for this scarce resource, it is necessary to use various means to pack and whitewash, once the successful listing is natural.

After that, although the stock market no longer referred to state-owned enterprises, most of the private enterprises also issued shares, but

It has always been an important tool for the government to dress up its achievements.

In China, the biggest beneficiaries of new issue are always issuers, issuers, intermediaries and local governments, and the two market investors often suffer.

Because the IPO is bound to cause expansion, and in the past more than 20 years, the system of pre payment of new shares will also draw blood from the two market.

If the implementation of the registration system will release all the rhythm and price, the result will inevitably be a large number of breakage and even a recurrence of the stock market crash. This is what management does not want to see.

After the stock market crash in June, the highest level has repeatedly stressed the principle of "keeping the bottom line" and "preventing and resolving market risks in time".

Secondly, another feature of registration system is that the threshold of enterprises is relatively low, and the process of listing is relatively simple. At the same time, it is supplemented by a series of supervision afterwards and severe punishment measures.

I'm afraid this one is also difficult.

The Standing Committee of the National People's Congress granted the State Council only the applicable regulations for registration system reform in the securities law, that is, the thirteenth and the fourth paragraph, "the public offering of new shares by listed companies should comply with the conditions prescribed by the securities regulatory body under the State Council, and be submitted to the securities regulatory agency under the State Council for approval".

If the legal liability is listed on fraud, it will impose a fine of 600 thousand yuan or a fine of 1%-5% of illegally raising funds. There is no legal basis for such cases as group action. In addition, our credit environment is far from the word "integrity". If we do not make substantive audit in accordance with the registration system only in the form of audit, there will be a lot of rotten companies looking for mixed evidence. Finally, the large number of retail investors will be at the expense of the 1%-5%.

To sum up, the registration system implemented after the authorization of the National People's Congress is probably only a small change in the audit system. The biggest difference is that it was audited by the securities and Futures Commission of the SFC and delegated to the exchange for examination and approval, just like the approval system was changed to the audit system ten years ago. Finally, there must be a piece of paper.