The Idea And Scheme Of Registration System Reform Are Much Better Than The Original Expectations Of The Market.

The executive meeting of the State Council has made clear that it is applicable to the NPC Standing Committee to authorize the State Council to adjust the securities law, and to implement registration reform within the 2 year period.

The SFC also made a statement on some principles of registration system reform.

Next week, the key is whether the closing price will be above 3430.

According to my summary of the "30 point winning algorithm", if the 3430 points fail for three consecutive days, the 3400 digit integer number is not guaranteed.

If it is kept for three days, 3500 points will be recovered later.

1, the release of the market three concerns.

The original market fear of registration was due to three concerns:

Worried about the rapid expansion of registration system reform, enterprises want to be listed on the market, and how much they want to go public every year.

Worrying about registration reform will greatly impact the value center of the two tier market, resulting in a sharp fall and investors suffer.

After the registration system reform, the value of shell resources is zero, all ST shares will be delisted, and the asset restructuring will no longer be attractive.

The SFC's position on the registration system reform is: "registration system reform is a gradual process, not one step in place; the new stock issuing rhythm will not be released at once; it will not cause large-scale expansion of new shares.

"The three here" will not, "no doubt," relieves the above three concerns and gives investors a reassurance.

2, "two years" is unexpected.

The market generally believed that registration system would be implemented in March next year.

Now, the State Council clearly put forward the concept of "registration within two years".

That is to say, from the end of December, when the NPC Standing Committee authorized the State Council to implement the stock issue registration system reform, two years from the date of adjusting the relevant provisions of the securities law, the relevant departments should formulate relevant rules and implement the registration system.

From time to time, "two years" is flexible.

It can be half a year or a year, or a year and a half to two years.

We can make management look at the market situation step by step, make decisions and push ahead with reform.

From the point of view of operation, the SFC has formulated the "Regulations on the registration and management of public issuance of shares" and other relevant departments and regulations and normative documents. It has made comprehensive and specific provisions on registration conditions, registration authorities, registration procedures, audit requirements, information disclosure, responsibilities of intermediary organizations and post supervision and management in corresponding matters. The relevant departments of the State Council have discussed and improved the public consultation of market opinions -- further research and Revision -- formally approved by the State Council.

The "two-year agreement" surprised the market and relaxed the tension of investors.

Even if some people still regard it as a bad thing, the bad will be eased.

3, highlighting the Chinese characteristics.

According to Lu Xiongying, a full-time member of the securities and Futures Commission, the way to reform the way of China's registration system can be summarized as follows:

First,

The registration system is not an American registration system, but a registration system with Chinese characteristics.

Second, the specific process of registration system reform will go through three stages: initial state, pitional state and ultimate state. The pition state may be longer.

Third, in the initial state and pition state, IPO still needs to adopt appropriate control measures such as rhythm and price, fully considering the intensity of reform and the market's bearing capacity, and coordinate with macroeconomic regulation and control to reduce market and economic fluctuations.

Fourth, in the pition state, the approval system is not totally negated, but appropriately appraise the approval system. We should retain the reasonable practice under the existing approval system as a smooth pition and adopt a combination of registration system and approval system.

This is what the SFC calls "registration reform is a gradual process".

Fifth, in the ultimate state, a full registration system will be implemented.

In my understanding, this is the term "two years" by the State Council.

That is, 2 years later, the registration system of IPO was implemented in accordance with the revised Securities Law.

4, registration system reform will not disrupt the existing queuing order for new listed stocks.

Originally, people thought that after the registration system reform, the original more than 600 queuing enterprises did not count. As long as new and old enterprises had passed the registration, they could rush to the market like the new three boards.

Now, the securities and Futures Commission has made it clear: "in the process of registration reform, the queuing order of the original listed companies remains unchanged."

This means that enterprises that apply for listing according to registration system must be listed in order after these more than 600 enterprises are listed.

This puts great emphasis on the order of IPO and the balance between supply and demand under the registration system reform.

5.

The key to the success of the reform is to control the rhythm of IPO.

To sum up, registration reform emphasizes the gradual progress of reform, the Chinese characteristics, the balance between supply and demand, and the interests of the one or two tier market.

Because no reform is at the expense of the interests of hundreds of millions of people. Registration reform will not sacrifice the interests of hundreds of millions of small and medium-sized investors, at the expense of the interests of large state-owned shareholders and large private shareholders, at the expense of the interests of institutional investors.

This is the key to ensuring the success of the registration system reform and stabilizing the healthy development of the market.

Conclusion: registration system reform is not a scourge, but will gradually create a smooth and upward market pattern.

Although there will be structural adjustments in the market in the initial stage of reform, especially those with excessive speculation and high share prices, they will face a long time of adjustment pressure, but will not affect the annual "Chun Sheng" market still appearing in the spring.

Of course, I still appeal that in the initial stage of registration system reform, it is very important to control the rhythm of IPO, and let the market gradually accept, understand and get used to the registration system, which is the key to the success of registration system.

In order to stabilize the people's mind, it is still possible to adopt the May 2014 advance notice of "no more than 100 new shares in the second half of the year".

6.

The "winter sowing" has begun.

Recently, due to the attack of the second batch of new shares, the stock market suffered huge pressure, and some institutions advanced the year-end settlement, so the market is now declining in December every year: large cap stocks are lying down collectively, small stocks and high priced stocks are single, continuous adjustment, low popularity and bad buying, resulting in the big market and fighting and retreat, accelerating the bottom.

For most of the high growth endogenous growth stocks, the timing of winter seeding has not yet arrived. In particular, the high priced stocks of private enterprises will face the cashing pressure after the lifting of the ban in January.

As for the stocks of reform, reorganization, pformation and upgrading that are externally generated, it is still against the trend to become strong as institutions and investors are accustomed to pre sowing in winter (one year ahead of time each month in winter).

First, because of the 10 reported by the Finance Association, the reform of state-owned assets in Shanghai will usher in an opportunity at the end of the month. Multiple benefits will be released, such as mergers and acquisitions, the overall listing and the reform of mixed ownership.

Two, because Disney yesterday held a press conference, related projects and investment opportunities have been released. The opening of the park in April next year is approaching, and the long-standing related stocks are beginning to show.

The three reason is that at the end of the year, the shell stocks of the ST shares, especially the asterisk strands, started to win, and the relevant stocks that were expected to turn the profit, upgrade and become the leading industry of the new industry were brave.

At present, there are only 60 antennas in the market, with a supporting line of about 3590 points. The following is the 3373 point of the national team's rescue market, and finally the 3234 index of last year's closing index.

In my view, the bad trend in December is just to test these three positions.

The original market as the largest negative registration system after landing, the market is still stable, volume has shrunk to 638 billion 800 million, it is not far from the bottom of the signal.