2016 Garment Enterprises Are Facing The Strategic Period Of Integration Of Industry And Capital.

In 2016, with the approaching of registration system, the acceleration of multi-level capital market construction, the increase of direct financing proportion, and the rapid expansion of capital market scale and the deepening of the reform of capital market, garment enterprises are facing the strategic period of the combination of industry and capital.

The registration system should be launched step by step, and clothing enterprises should be placed in the capital market.

The Standing Committee of the National People's Congress voted on December 27th to approve the decision of the State Council to adjust the relevant provisions of the "People's Republic of China Securities Law" in the implementation of the stock issuing registration system reform.

The implementation period of this decision is two years and has been implemented since March 1, 2016.

According to the document, it can be implemented within two years from March 1, 2016.

That is to say, the earliest registration system will start in March 2016 and late in March 2018.

Registration system is a fundamental reform of the stock issuing system.

The current approval system is prior supervision. The issuance of new shares is verified and judged by the executive authorities on the authenticity of the disclosure content, and the value of the disclosure is judged.

The stock registration system is a matter of supervision after and after, and its value is judged by investors and the market.

At the beginning of 2016, the stock market introduced the fusing mechanism and led to market turbulence. After examining the securities and Futures Commission, the securities and Futures Commission decided to suspend the fuse system.

During this period, a "Registration Scheme" settled in the news soon, and then the Shanghai Daily quickly refuted rumors.

There is a view that the news of speeding up the registration system has been amplified.

Turbulence.

In the short term, the launch of any new thing will not be smooth sailing, or even pay a price.

The implementation of registration system is urgent and not excessive.

After the adoption of the decision, the SFC also indicated that it would conscientiously implement the work requirements of the State Council regarding the implementation of the registration system reform of stock issuance, and make good preparations for the formulation of the supporting rules and other preparatory work, and actively, steadily and steadily promote the registration system reform in accordance with the authorization of the NPC.

It can be predicted that the introduction of the registration system does not mean that the new shares will expand in a large scale, and will take into account China's national conditions and reality and step by step.

This new regulation of A shares issued on the new year's Day reflects this point.

The SFC said that from January 1, 2016 onwards, IPO will be implemented in accordance with the new system.

When investors purchase new shares, they do not need to pay in advance. Small cap stocks will be issued directly, issuing audit will pay more attention to information disclosure requirements, and issuing enterprises and sponsoring agencies need to shoulder more obligations and responsibilities to protect investors' legitimate rights and interests.

The SFC emphasizes that the new IPO system is based on the approval system, which reflects the spirit of registration reform, but not the beginning of the registration system.

For the clothing industry, the introduction of registration system enables more qualified enterprises to visit the capital market, but compared with the past, the relationship with the capital market has changed greatly.

Before clothing enterprises try to enter the capital market through auditing, it is similar to "strict promotion and wide out", which results in the phenomenon that the valuation of new shares in the A share market is generally higher and the performance changes. Therefore, the fundamental significance of implementing the registration system is to guide the capital market to change the nature of long-term investment and value investment, so that good companies and high valuations should be corresponded, and bad enterprises will be eliminated.

In the final analysis, clothing enterprises should do well in the main business, consolidate the assets quality of enterprises, promote their pformation and upgrading through capital market, and enhance their valuation in capital market through the continuous growth of their own enterprises, so as to achieve a virtuous circle of industry and capital.

Speed up the construction of multi-level capital market, and clothing enterprises should have a "direct financing" approach.

A year ago, a series of policies and plans issued by the central high level and the capital market supervision department were released, aiming at building a multi-level capital market and raising the proportion of direct financing in the capital market.

The executive session of the State Council, held in December 23, 2015, adopted in principle the implementation opinions on further increasing the proportion of direct financing and optimizing the financial structure. The implementation of the proposal was clear. By 2020, the direct financing system of marketization, wide coverage, multi-channel, low cost, high efficiency and strict supervision was basically built, and the proportion of direct financing increased significantly.

The meeting pointed out that we should further improve directly.

The proportion of measures to enhance the efficiency of financial services in the real economy.

We should improve the multi-level capital market, such as stocks and bonds.

The strategic emerging board of the stock exchange supports the financing of innovation and start-up enterprises, improves relevant laws and regulations, promotes the listing of special equity structured venture enterprises in China, increases the number of listed company in the share pfer system of the small and medium-sized enterprises nationwide, researches and launches pilot projects to pfer to the growth enterprise market, and plans to develop regional equity markets.

Next year, the SFC will focus on 5 aspects: first, actively develop the stock exchange market, and the Shanghai Stock Exchange's strategic emerging board must be launched; two, speed up the improvement of the new three boards, increase the number of listed company in a large scale, implement the market internal layering, study the pilot pfer to the gem; three, standardize the development of the regional equity market; the regional equity market will form a unified management standard in the future; four, carry out the pilot scheme for the public financing of equity financing, and next year, we must start the pilot scheme of the stock raising crowd, but not rush into mass action; five, expand the bond market, and better coordinate the supervision between the inter-bank bond market and the exchange bond market, and the ultimate goal is to form a unified bond market. On December 25th, Fang Xinghai, vice chairman of the China Securities Regulatory Commission, said at the briefing of the State Council's policy briefing that the direct financing should be further enhanced.

In December 30th, the Shenzhen stock exchange held the forty-sixth meeting of the Third Council to clarify the key work in 2016.

The meeting called for a substantial increase in the inclusiveness of the gem, laying the foundation for the smooth listing and financing of enterprises that have not yet made profits and special equity structure, creating better conditions for the new three board enterprises to pfer to the GEM board, restoring the IPO issuance of Shenzhen board, serving state owned enterprises reform, cultivating more market blue chip enterprises, undertaking the return of stocks in small and medium capitalization market, and actively striving for "Shenzhen Hong Kong Link" to start as soon as possible.

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Looking at the above policies, it can be predicted that 2016 will be a year of accelerated pace of direct financing in the capital market.

Main board, medium and small board, gem, new three boards, four boards (regional equity market) and equity

There will be new moves in every market, such as the bond market.

An important goal of developing a multi-level capital market and raising the proportion of direct financing is to enable enterprises that want to develop and develop their capabilities, especially small and medium-sized enterprises, not to be able to develop because of "no money", so that enterprises in different stages of development and different characteristics can find suitable docking ways with the capital market, reduce the financing costs and risks of enterprises, and promote the pformation and upgrading of industries.

At the same time, "rich" enterprises can make more flexible use of capital for mergers and acquisitions.

This is a good thing for the garment industry, which is mainly traditional industries and small and medium-sized enterprises.

At the deeper level, people's creativity and the value of enterprise creation can be timely and appropriately rewarded.

Today, the clothing industry needs better design, better quality products, more efficient business models, and more gold bearing local brands. All these good values need to be rewarded.

China's capital market is not short of money. What is missing is the combination of money and creativity.

This is also the fundamental purpose of the central government to vigorously develop the direct financing market to support the development of the real economy and to support entrepreneurship and innovation. Clothing enterprises should have such a "initial heart" to enhance creativity and create enterprise value rather than financing for financing.

Garment enterprises in 2016: facing the strategic period of integration of industry and capital

With the capital market entering the stage of big financing, garment enterprises should link capital with "value".

Looking back in 2015, although the capital market has experienced ups and downs of the stock market and IPO's suspension, several sets of data show that the scale of China's capital market is expanding rapidly.

According to PWC's recent statistics, the Shanghai and Shenzhen stock market IPO reached 219 in 2015, up from 125 in 2014, and the financing scale was 158 billion 600 million yuan, higher than the level of 78 billion 600 million yuan in 2014.

In addition, PWC expects that 400 enterprises will be listed for the first time in 2016, and the scale of financing will be about 250 billion yuan -3000 billion yuan, and the scale will be the first in the world.

According to the latest data of Hongkong and China Mainland Stock Exchange issued in 2015 in, the new stock market in Hongkong has been the most beautiful achievement in nearly five years.

In addition to the pfer of 14 stocks from gem to main board, Hongkong new stock market completed 124 new shares in 2015, raising HK $262 billion 100 million, and the total number of new shares and total financing increased by 8% and 15% from 115 in 2014 and 227 billion 700 million Hong Kong dollars respectively.

Both the number of new shares and the number of H-shares have reached a record high.

According to the data released by the national stock pfer company recently, a total of 1887 listed company completed 2565 stock issues in 2015, issuing 23 billion 79 million shares, financing 121 billion 617 million yuan, and matching the growth enterprise market.

According to the statistics of Wind, the size of gem was raised by 115 billion 630 million yuan in 2015.

At the end of 2013, the new three board listed companies were only 356, and by the end of 2014, the number of listed companies had reached 1572.

By December 31, 2015, the number of listed companies reached 5129, and the growth rate was swift and violent.

These amazing data have become the past. In 2016, the pace of expansion of China's capital market will further accelerate. The stage of big financing in China's capital market has arrived, and the reform of the capital market will also go deeper.

2015 is also the year of integration and pformation of garment industry. Diversified investment, merger and acquisition cooperation, emerging industry investment, internal supply chain integration and other actions are constantly moving. In 2016, the garment industry will continue to change the pace of industrial integration, while the degree of integration of industry and finance will further deepen.

In the long run, China's apparel industry will eventually have a globally competitive fashion brand group, such as LVMH and Zara, and a group of competitive brand clusters.

This requires the local garment enterprises to create huge brand value, and how to make good use of the current capital market financing and major reform opportunities may be a key strategic period.