China's Capital Market Is Still Immature, Facing Many "Growing Pains".

Many representatives expressed the view that capital market as an important part of China's financial system is of great significance for revitalizing the real economy.

In the process of revitalizing the real economy, the capital market should not only make additions, speed up the improvement of multi-level capital markets, encourage the establishment of mergers and acquisitions, venture capital funds, but also make subtraction, improve the market exit mechanism and strengthen supervision, so as to prevent financial capital from eroding the real economy through capital market.

At present, China's capital market is not yet mature and faces many "growing pains".

The Central Committee of the people's Liberation Movement believes that the capital market faces two prominent contradictions. First, China is still a bank dominated financial structure, and the function of direct financing of the capital market needs to be substantially improved. The two is that the industry structure of "big market and small industry" has not changed fundamentally. The contradiction between capital market and the supply and demand of the service entity economy and the national strategy of the securities industry has become increasingly prominent.

In view of the "IPO barrier lake", the Central Committee of the people's Republic of China proposed to correct the understanding and conceptual errors in the past that "IPO speed and scale will be too fast, which will lead to a decline in the market index".

For the current speed of IPO, Chen Dongzheng, chairman of the CPPCC National Committee and the principle of the Shenzhen Stock Exchange, said in a media interview that the speed of IPO is similar to that of the high-speed rail speed adjustment. We should take into consideration the technology, mileage and road conditions to make a comprehensive judgement of what is reasonable.

But what is more clear is that if the capital market supports the development of the real economy, the IPO of the gem can not stop, and two can not be slow.

On behalf of the committee members, we believe that we should vigorously improve the "multi-level" system of the capital market, and solve the problems of SME listing and financing, and cultivate entrepreneurial and innovative enterprises through the development of new three boards and regional equity markets.

"The main board market, the growth enterprise market, the new three board market and the regional equity market should be further differentiated in the functional orientation and the development of the service entity economy. We should strengthen the direct financing of the real economy, equity financing and various forms of financing, so as to fundamentally reduce the financing cost of the real economy."

Zhang Chuanwei, chairman of the National People's Congress and chairman of Ming Yangxin energy investment holding group, said.

For the severe challenges facing the new three board market, such as lack of liquidity and shrinking of financing scale, the Central Committee of the CPC Central Committee proposes to improve the new three board stock issuing mechanism, allow eligible listed company to issue public stocks to specific objects on the new third board, and set up a market level on the innovation level to conduct public offering of shares and listed company pactions.

To promote the reform of stock issuing registration system for experimental fields.

In addition, a package solution to improve the liquidity of the new three boards will be introduced as soon as possible.

In view of how to improve the ability of technological innovation, Ma Yuhua, the CPPCC National Committee member and the former president of China Merchants Bank, believe that financial innovation should support the technological innovation of manufacturing industry and accelerate the improvement of multi-level capital market.

We should explore the establishment of a hierarchical management mechanism for gem, and promote the establishment of a regional equity trading market, a share pfer system for small and medium enterprises across the country, and a pfer mechanism and delisting mechanism between the gem and the main board, so as to establish an organic link between the markets at all levels.

We should strengthen the system construction of the dynamic pfer of stock rights of non-listed company, improve the policy environment and exit mechanism of venture capital investment, and support the investment in equity and debt assets of non listed technology companies, such as direct investment subsidiaries, trust companies' direct investment subsidiaries, fund management companies, and so on, so as to provide financial support for different types and different stages of development of science and technology enterprises.

The capital market is an important platform for the market to allocate resources. However, at present, domestic securities companies can not bear the main channel and main force of the four systems of systemic importance, which are similar to the indirect financing system.

The Central Committee of the people's Republic of China suggested that a state-level direct financing platform should be set up to boost the landing and implementation of the national strategy of the capital market.

In particular, it is suggested that in May 9, 2014, the State Council promulgated the "opinions on further promoting the healthy development of the capital market", and promulgated specific policies to guide and support mergers and acquisitions among securities institutions, and to set up a number of systemically important modern investment banks to undertake and play the functions and missions of the national team.

In the opinion of CPPCC member and economist Li Daokui, capital market is a nervous and mobilizing system, which can mobilize financial resources among different industries.

At present, the role of capital market has not yet been fully realized. In many basic and traditional industries, the impact of capital market is not big enough.

Therefore, some M & a funds should be set up to merge and restructure some traditional and overcapacity industries through capital market.

The proposal of the Central Committee of the people's Republic of China on increasing financial support for science and technology development to make up for the short board of scientific and technological innovation also suggests that we should open up direct financing channels by leveraging multi-level capital markets.

We should continue to encourage technological enterprises to actively launch the "new three boards", give priority to the implementation of the pfer system of technology enterprises, and establish and live the "technology boards" of equity trading centers across the country to enhance the functions of risk management, capital accumulation and enterprise guidance, and explore financing instruments such as issuing directional bonds, small and medium-sized private debt, and debt and equity joint products.

We should implement the policy of encouraging industrial investment funds and promote the substantive operation of all technological innovation and venture capital funds across the country.

Some representatives thought that to help the development of the real economy, the capital market should not only do a good job in addition, but also do a good job of subtraction.

On the one hand, while promoting the normalization of IPO, we must improve the delisting system.

Jiang Yang, vice chairman of the securities and Futures Commission, said in response to a reporter's question from the China Securities Journal, this year, the SFC has raised some new requirements for the delisting. First, strengthening information disclosure and preventing fraud; two, requiring intermediaries and CPA to fulfill the responsibilities of gatekeepers and accountable for financial fraud; three, actively modifying and perfecting the delisting standards; four, strengthening the front-line regulation of exchanges so that the exchanges can really take the responsibility, and the delisting will be delisted according to the law.

In addition, since last year, some financial predators have frequently raised their cards in the capital market.

Therefore, preventing financial capital from eroding the real economy through the capital market has become a hot topic during the two sessions.

Pan Gang, chairman of the CPPCC National Committee and the chairman and President of Limited by Share Ltd, Yili Industrial Group, Inner Mongolia, called for a high degree of attention to the phenomenon of "going from reality to virtual", deepening the reform of the investment and financing system, optimizing the financial service entity's economic environment, strengthening the supervision of financial capital, and guiding capital to the key areas of the real economy.

We should improve laws and regulations, strictly examine and approve the capital entry system of financial enterprises, establish effective anti takeover measures and build "firewall".

In this regard, regulators are already in action.

Chen Wenhui, vice chairman of the China Insurance Regulatory Commission, stressed that insurance funds should mainly be financial investors.

The CIRC requires insurance companies to file a record with the CIRC when they purchase the listed companies. At present, the specific implementation rules for the acquisition of listed companies by insurance companies are being worked out to solve problems such as leakage of regulatory insider information caused by filing system.

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