The Most Important Thing In China'S Securities Market In 2016

The first trading week of 2016 finally ended in a fright.

At a regular press conference after the closing of January 8th, the SFC spokesman said one of the most important things in China's securities market in 2016.

What is the most important thing? Of course, the registration system.

The CSRC spokesman explained mainly the time when registration system was implemented:

Q: the NPC passed the authorization decision on registration system reform. The decision came into effect on March 1, 2016. Does this mean that the registration system will be implemented in March 1st?

A: in March 1st, the starting point of the two year implementation period of the NPC is not the starting point of the registration system reform. The specific time for the implementation of the reform will be announced ahead of schedule after the completion of the relevant system rules.

Before the formal implementation of the registration system, I will continue to do a good job in stock issuance audit in accordance with the requirements of the current approval system.

At the same time, I will make a good plan for the pition from the issuance examination to the registration system, and make reasonable arrangements for the issuance audit work, so as to ensure the smooth convergence of the issuance audit work.

Relevant programmes will be announced to the public in a timely manner.

So the problem came.

Does the SFC's statement indicate that the registration system has been launched with new flexibility? In other words, is it postponed? Because a small stock market crash has just occurred. Is that right?

Releasing the signal of "less urgent expansion" to the market?

Chairman Xiao pointed out: after the abnormal fluctuation of stock market,

"The amendment is postponed, and the State Council may adopt legal authorization to issue opinions, and make every effort to register the system in March next year. Results should be issued first, and then the price will be released later, and the issuing process will be shortened (3 to 6 months) to give clear expectations to the enterprises.

This is the first time in print.

The news of speeding up, the press conference for the next two weeks, did not make any representations on the news, neither denied nor acknowledged it.

Subsequently, the news of the speeding up of the registration system was officially released. Indeed, it adopted the "legal authorization mode". Indeed, the deadline for March 1st was given.

But the question is whether March 1st is the start date.

In the past more than 20 days, there has been controversy in the market, but the SFC did not give an explanation.

After a sudden fall, he made a clear explanation.

And after the explanation, when the registration system was launched, it had enormous time and space. Instead, "there was no timetable".

So, my view is: although it is hard to say that the registration system has been postponed or postponed again, this explanation has made positive contributions to the current market.

At least in the short term, market pressure is not that big.

In a WeChat group dominated by financial journalists, I had a small argument with several reporters.

They believe that the registration schedule is like this.

The SFC only gave a general explanation to avoid misunderstanding.

Therefore, this does not mean that the registration system is postponed, nor does it constitute a positive result.

My view is that this is quite a textual research.

Why do you say so? Let's take a look at a news published by several websites in November 22, 2015:

On the morning of November 20th, the chairman of the SFC, Xiao Gang, assistant chairman Huang Wei, and the leaders of the general office and the issuing department, listened to opinions on promoting the reform of the registration system of stock issuance.

In short, in a word, the securities market must be stable in order to achieve the established national policy of "raising the proportion of direct financing significantly".

In order to do this, many things can be changed.

For example, the fusing mechanism, such as the large shareholders' ban period, and then the registration system.

But deciding the direction of the stock market is not just about policy, but also the power of the market.

The Chinese stock market in 2016 was destined for the big show.