Ren Zeping's Interpretation Of Registration Reform To Promote The Rise Of Equity Financing

Ren Zeping, chief macroeconomic analyst at Guotai Junan, said that China's economy will show a weak balance of L in a period of time, but there will be tremendous changes in the economic structure within 2015 years.

Although the macro economy is short of growth, there is no shortage of business in the micro scale, nor the rise of great companies.

At the same time, registration reform will promote the rise of equity financing and lay a foundation for long-term prosperity of stock market.

The future market opportunities come from the opportunities of growth in dividend yield and risk preference brought by risk-free interest rate reduction, and their strength depends on no risk.

The degree of reduction and the degree of risk appetite repair.

Ren Zeping believes that from the growth shift process, the domestic economy has entered a slow dip period from the rapid decline period, and the L with a weak balance in the future economy may have a 3-5 year adjustment period. The market should have full expectations.

GDP growth slowed to 6.5% in the first quarter of 2016.

China has a vast market of 1 billion 370 million people. Although the macro economy is short of growth, there is no shortage of business in the micro scale, nor does it lack the rise of great companies.

For the A share market, he believes that the key variables in the future market are denominator risk-free interest rate reduction and risk appetite repair under the condition of abundant liquidity, asset allocation shortage and molecular L.

The continued decline of risk-free interest rates makes the return on competitive assets such as stocks, bonds and financial assets rise and fall.

Considering that stocks are risky assets, risk-free interest rate fall is a sufficient condition for debt cattle, but it is only a necessary condition for stock cattle.

With regard to registration system reform, he believes that the new changes of registration system in new issue auditing, pricing and supervision mainly include four aspects: first, it is expected that the final registration system will have new changes and breakthroughs in auditing, pricing and supervision; on the other hand, there will be appropriate rhythm control, and there will be a certain audit, which is a gradual reform plan instead of an unlimited supply plan; two, it should be examined and put down to the stock exchange.

Conduct formal audits and conduct exchanges.

The three is market pricing; the four is to relax supervision in advance, and strengthen supervision afterwards.

Registration system will promote the rise of equity financing, promote pformation and innovation, lay the foundation for long-term prosperity of stock market, and promote valuation to become more reasonable.

In September 13th, we issued guidelines for deepening the reform of state-owned enterprises, and gradually formulated series supporting documents for reforming and improving the management system of state-owned assets and developing mixed ownership economy in state-owned enterprises.

Ren Zeping believes that the bright spot is that in accordance with the principle of "who pays whom to classify", the institutions that perform the responsibilities of investors are responsible for formulating the functional definition and classification schemes of the funded enterprises, dividing and dynamically adjusting the functional categories of local state-owned enterprises.

Local governments, as contributors of local state-owned enterprises, delegate authority to decentralization, and the reform of local state-owned enterprises is expected to be actively promoted.

Future points in the "N" sub program, local pilot landing.