Listed Companies Are The Cornerstones Of Stock Market. Supervision And Management Can Not Relax.

The supervision of the main body of stock market comes not only from the administrative regulatory body, but also from professional investors, professional service organizations, media, trade associations, and internal shareholders.

The administrative supervision organs shall bear their statutory regulatory duties, and all market players should also assume their responsibilities according to law and fulfill their obligations.

Straightening out the relationship between market players and shaping a healthy market mentality is a necessary prerequisite for deepening reform.

Recently, the public opinion field revolves around the IPO rhythm of China's stock market.

There are many discussions on responsibilities, some of which are constructive, but some of them have also created new problems.

The author believes that there is a gap between interests among different market players, and there is also one side of interest gaming and interest sharing.

If we do not fully understand this point, I am afraid it is difficult to straighten out the relationship between the various market players, it is difficult to crack the current outstanding contradictions, and even make the contradictions continue to stack.

Generally speaking, the stock market includes the relationship between the government and the market, the relationship between the regulators and the market players, the relationship between investors and the fundraisers, the relationship between the service providers and the service providers, the relationship between the market players, and the relationship between the subjects in the company.

There are some overlapping and overlapping relationships among different groups, but the main contradictions reflected in each group are different.

If the discussion is misplaced, it is difficult to reach a consensus.

In fact, when people argue about related issues, they often confuse the question of what kind of relationship they are arguing about.

For example, the relationship between the original shareholders of listed companies and the new shareholders of IPO is essentially the relationship between different shareholders within the company, but it is described by some as the relationship between the fundraiser and investors.

Those who hold this view believe that the original shareholders snatch the rights and interests of the IPO shareholders through the company's listing. Once the original stockholders sell the stock, the rights and interests of the snatch are cashed into real gold.

In fact, this is a misrepresentation. The correct description should be: after a company's IPO, the old and new shareholders share the stock wealth formed before the listing and the incremental funds coming through the IPO. These two assets constitute the overall assets of the company and can not cut off the two assets.

In essence, all shareholders get profits from listed companies, and the higher the ship is, the bigger the shareholders are.

At the same time, in the listed companies, the majority shareholders and executives are more responsible for the operation and governance, while the minority shareholders are less responsible, and their rights and interests may also be violated by large shareholders.

It is necessary to protect the rights and interests of shareholders, especially minority shareholders, by legal means.

What needs to be explained here is that the two tier market investors whose main purpose is to earn a short price difference is two kinds of identities: "shareholders" and "speculators".

Such investors' demands for listed companies and their large shareholders are special and should be differentiated.

Another example is the relationship between the SFC and professional services such as accounting firms, law firms, securities companies, and so on. It is the relationship between regulators and supervisors. The former should supervise whether the latter practise in accordance with the law, and the cooperative relationship. The former and the latter are "gatekeepers" and regulators, who together form a regulatory force to jointly carry out compliance supervision of listed companies.

There is no doubt that the listed company is the cornerstone of the stock market and is in the core position of the market main body relationship.

Listed companies act as fundraisers, corresponding investors.

The main body corresponds to the regulator; as the investment target, the corresponding professional service provider.

The quality of listed companies determines whether the market has vitality, whether there is growth, whether it is sustainable development or not.

A listed company shall engage in business activities in accordance with the provisions of the company law, the securities law, and laws and regulations such as industry and commerce, taxation, accounting and environmental protection, so as to form its own advantages and combination advantages.

At the same time, as the bearer of investment targets and shareholders' rights and interests, we must disclose the major business information fully, accurately and timely, so that investors and shareholders can fully understand the actual situation.

Accountants, lawyers, sponsors and underwriters are the core subjects to test the quality of listed companies, and the SFC is not the main body.

The SFC's responsibility is to carry out the "review" on the basis of the examination of professional service institutions, and supervise the professional service institutions to practise according to the law.

Whether the company IPO, refinancing or asset restructuring, accounting firms, securities companies, law firms and other professional services are the "first gatekeepers", the SFC issued the audit committee, mergers and acquisitions audit committee is the "second gatekeepers".

Whether it is the first or second gatekeepers, it is all about whether the listed companies are qualified to meet the issuing conditions, rather than the audit of their expected profitability.

Therefore, as long as the professional service agencies fulfill their duties according to law, there is no undue behavior, and the profits of listed companies are still not profitable.

The supervision of listed companies, institutional investors and professional service agencies not only comes from the administrative supervision and supervision institutions (SFC, the Audit Commission, etc.), but also from professional investors, other professional service organizations, media, trade associations, shareholders of the company and so on.

The administrative regulatory body bears the responsibility of all-weather and network supervision, but in essence it is a ruling body.

It has to judge whether the listed companies and professional service institutions have any illegal activities, whether they infringe upon the interests of the public and the interests of specific people, but it can not replace the supervisory functions of other subjects.

Securities companies and fund companies are both professional service providers and important investors. Their position in the market is also very special.

Regulators and social forces must double regulate them, that is, to test compliance with their professional services, and to check whether their investment practices are compliance.

The SFC as an administrative regulator is not the main body of market competition. Its core responsibility is to determine who is breaking the law and who is legally compliant.

At present, the SFC assumes two levels of responsibilities, one is the general sense of macro supervision and management responsibilities, and the other two is the coordination management responsibilities of the industry.

It is a field that superimposes responsibilities and second levels of responsibilities at the first level, and is also a key area in the reform of the relationship between the government and the market.

Since 2009, the SFC has repeatedly stressed that it does not endorse the quality and investment value of listed companies.

The SFC issued the audit committee after approving the issuance plan of the enterprise, and issued the approval by the SFC, but this is only an administrative license. The specific date of issue is decided by the enterprise within the window period.

The SFC is not responsible for the quality of the listed company, nor is it responsible for the issuer's success or not. It is only responsible for compliance with the listing procedures.

No matter what system is called, the core of the IPO system is auditing according to law and centered on information disclosure.

Although there are self regulatory organizations such as securities associations and fund associations in China, the SFC still has to shoulder part of the responsibilities of industry coordination management because of the national conditions.

This is because, in China, the authority of the executive branch of government is far greater than that of general trade associations and market organizations, and is different from that of the United States and other countries.

The SFC needs to find a balance between the two responsibilities of macro supervision and management and industry coordination management, which is also the necessity of reform.

Reform must adhere to two points: on the one hand, we should further define the boundary of government regulation, decentralization and decentralization, and release more vitality of market players.

On the other hand, the supervisory function of the market must be connected with the market participants.

Further strengthening the quality of the performance of professional accountants, law firms, securities companies and other professional services is crucial, and we must strengthen internal governance and internal supervision.

To sum up, administrative regulatory agencies do not need and cannot afford to solve all contradictions in stock market, but should bear their statutory supervision and management responsibilities.

After all, all market players should also assume their responsibilities and fulfill their obligations.

It is the basic logic of the modern market economy to assume their responsibilities and do their jobs.

The foothold of the reform is to straighten out the relationship between the market players, adjust the market interest pattern, and create a healthy market mentality.

To achieve this goal, the market will have a solid foundation for long-term stable development.

For more information, please pay attention to the world clothing shoes and hats and Internet cafes.