Registration System Will Bring Five Great Changes In Capital Market.

On the 27 day, the Standing Committee of the National People's Congress deliberated and adopted the decision to authorize the State Council to adjust the relevant provisions of the "People's Republic of China Securities Law" in the implementation of the stock issuance registration system reform. This marks a clear legal basis for the reform of the registration system of stock issuance.

What changes will be made in the capital market and how do investors adapt to these changes?

According to the SFC data, there are more than 600 listed companies queuing up for trial.

The number of enterprises that meet the Shanghai and Shenzhen Stock Exchange listing standards is far greater than this.

However, there is no need to worry too much about the expansion of the market because these companies will not go up.

The SFC has repeatedly said that the rhythm and price of IPO will eventually be released, but the reform is a gradual process, and prices and tempo will not be released step by step, which provides a buffer for the market.

Under the auditing system, people often think that the step of going to the market has been checked by the supervision of various levels, and the listed companies are good ones.

However, under registration, all of this has changed.

The SFC expressly stated that the registration system is based on

As the center, the timing, scale and price of the stock issue are determined by the market participants. Investors should independently judge and take risks for the issuer's asset quality and investment value. The supervision department shall focus on the completeness, consistency and comprehensibility of the issuer's information disclosure, and will no longer endorse the listing of enterprises.

This means that investors need to keep their eyes wide open to distinguish the investment value of an enterprise.

As long as the enterprise does not violate the law and regulations, investors can not fail to invest.

At all times, the more than 10 high limit earnings have become an inexhaustible motive force for investors to love to fight new.

Statistics show that as at the end of November, the average rate of successful online signing of 192 companies in 2015 was 0.53%, and the average increase of 4 in May and 4 in May was more than 600%.

The core of registration system reform is to straighten out the relationship between the government and the market, and finally release the control of the issue price. The market will balance the supply and demand of stocks.

The industry is expected to accompany

With the advance of reform, the "scarcity" of new shares will be reduced, pricing will be more market-oriented, and the premium level will also fall after the IPO, and the "new" boom will become the past.

Insider trading, manipulating the market, issuing fraud.

Although regulators continue to crack down on illegal activities in the capital market, illegal cases continue to emerge.

Chen Shaoxia, principal investigator of Shenzhen Zijin port Capital Management Co., Ltd. believes that the reason is that the cost of illegal activities is too low and the punishment is not enough.

Under registration system,

The focus of supervision will be shifted from front-end approval to post event links, and more regulatory power will be placed on inspection enforcement.

Those who violate the rules in the capital market by cheating can no longer be fluke.

The SFC clearly stated that in the implementation of the registration system reform, we will earnestly safeguard the "three public" market order, severely crack down on and punish illegal activities, and comprehensively strengthen the punishment for false issuance and disclosure of information, protect the legitimate rights and interests of investors, and allow illegal offenders to pay a higher price.

In the current stock market, although some listed companies are poor in performance, they are still being touted as a scarce "shell resource" because they have the qualifications of listed companies.

This is because, under the approval system, the IPO cycle is long and the cost is high. Enterprises eager to go public financing will sometimes borrow shell to achieve rapid listing, and the cost of shell back will often reach hundreds of millions of yuan.

Registration reform will significantly reduce the cost of listing and financing.

At the same time, the reform will also implement a strict delisting system, and enforce mandatory delisting of listed companies with fraud and major violations, and resolutely remove the "black sheep" from the market.

The industry expects that under the registration system, the qualification of listed companies is no longer as scarce as it is now, and "shell resources" will also lose the current high price.

The perfection of delisting system will also force many listed companies with shell value to leave the market.