Gui Haoming: The Registration System That Talked About For A Long Time Finally Came.

The registration system reform in stock issuance has been put forward in the past few years and has been written into several central documents.

However, because of the relevant provisions of the securities law, it is necessary to wait until the securities law is completed before it can be amended.

Recently, the State Council submitted an application to the National People's Congress, calling for special authorization to implement the registration system in the stock issuance of Shanghai and Shenzhen stock exchanges.

If the NPC Standing Committee accepts this application, then the registration system can be implemented in theory.

The parties concerned have also made a statement, and will make every effort to prepare for the implementation of the registration system.

This means that the long time registration system is finally coming.

In China, the national share pfer system for small and medium-sized enterprises (commonly known as the new three boards) is a registration system for listed company.

Now it seems that implementing the registration system in stock issuance, whether domestic or overseas, is conducive to improving the degree of marketization and playing a positive role in promoting the steady development of the market.

On the contrary, it can be said that no stock disaster has occurred because of the registration system.

The registration system reform that will be carried out in Shanghai and Shenzhen stock exchanges has not yet announced any specific plans. Therefore, there has been concern that stocks will be spammed after the registration system, pricing will be more chaotic and fraud will be more serious.

This worry is actually due to misreading of registration system.

The relevant parties have also clarified that the registration system reform will be gradual and will not be carried out step by step. At present, it will still be pushed forward according to the original procedures.

That is to say, the registration system reform now has Chinese characteristics. It will not copy the practices of a country or region abroad, nor will it be carried out in a state of runaway control.

Of course, it can not be said that after the registration system has been implemented, all kinds of problems in the market will be solved.

In the year of the reform of split share structure, there was a general expectation that China was

Will mature from now on.

However, it turns out that eight years later, China's capital market is far from mature.

Similarly, the registration system can only solve some of the problems in the stock market. The idea that the registered stock market will bid farewell to the bear market is rising.

Further, the implementation of the registration system reform, due to the lack of experience and the complexity of the market, can not be expected to be smooth sailing. There will be twists and turns.

Therefore, investors should have confidence in the registration system reform, but they should not be blindly optimistic.

Moreover, the relevant departments should make adequate preparations for preventing these risks from happening. They should have plans and have corresponding countermeasures.

For investors, registration is a brand new thing, and we should have a full assessment of the impact that may be brought to it. We should not follow blindly and treat it prudently, seize the investment opportunities brought by this reform, and fully enjoy the dividends brought about by the reform.

For the vast majority

The biggest advantage of registration system is the realization of the marketization of new shares, and the approval power of issuance, including whether to allow the issue, and what price to issue, as well as when to issue and how much to issue, are handed over to the market to decide, that is, to give full play to the binding power of the market.

When the market mechanism really works, it can effectively avoid the spamming of stocks and the release of high priced prices.

At the same time, those stocks that no longer meet the listing requirements will have to be delisted because of market constraints.

The overseas market has been going on for so many years.

The number of companies listed on its exchanges is not very large. Sometimes the number of new listed companies is not as large as that of delisting.

Therefore, investors should not be afraid of registration, but should believe in the role of the market.

We should see that many problems in China's capital market are related to the lack of marketization and excessive administrative control.

Now, starting from the source of stock issuance, it is a great progress, and it is certainly a great progress. People have every reason to welcome the implementation of registration system and enjoy it.