With The Registration System As The Cutting Edge, The Capital Market Will Usher In A Comprehensive Deepening Reform.

In January 27, 2019, the chairman of the securities and Futures Commission was elected to replace Liu Shiyu as the head of the new capital market. At that time, the Shanghai composite index was at a low level of 2600.

In the past 2018, under the resonance of various factors, the capital market was in a downturn. The scale of financing in the primary market dropped and the financing function of the capital market was impaired. The continued decline of the two tier market also exposed many problems. The risk of equity pledge of listed companies is outstanding, and the liquidity and activity of stock market have dropped to a low level after the stock market crash.

Looking back on a regulatory cycle in the past, capital markets are in the stage of rethinking after the stock market crash. The main task of capital market leaders is to eradicate market chaos and maintain market stability. Most of the policies are regulated strictly by feedback.

For example, in 2016, mergers and acquisitions were tightened, and the market backdoor and shell were strictly controlled. In 2017, the fixed increase rules were drastically revised, breaking the increasing arbitrage cycle of institutional investors, further refining the reduction rules, and significantly curbing the illegal reduction actions such as bridge reduction and so on.

But the capital market does have its cycle. In the troubled times, the price of heavy penalties is the decline of market vitality and the damage of financing function. It is imminent to moderately optimize and relax the policy of revising the previous cycle.

On the other hand, after years of capital market operation, there are many structural and structural problems. For example, the structure of market investors is still dominated by retail investors, and the color of the new stock issuing system is strong.

As chairman of the securities and Futures Commission will be full of, in the past 30 years, along with the historical process of reform and opening up, China's capital market has achieved leaping development from scratch and from small to large. At present, the stock market, the bond market and the commodity futures market all rank the highest in the world, but the overall development is not yet mature, and some deep-seated structural institutional problems have not yet been effectively solved.

It is not easy to start a comprehensive reform of the system, many of which have been valued by previous capital market leaders.

However, this year, the capital market has ushered in the best time to break the overall reform. In the Shanghai stock exchange, the establishment of the scientific innovation board and the pilot registration are made to break through the best edge of the reform dilemma.

It can be seen that in the first half year of the preparation and operation of the science and technology board, the derivative influence brought about by the registration system has penetrated into all directions of the market, such as the public's desensitization of the promotion of registration system, and the acceptance and recognition of investors in the marketization of the pricing system.

More importantly, the promotion of registration system has accelerated the revision process of the securities law. The speed up of the revision of the securities law further provides a solid legal foundation for the comprehensive deepening of the reform of the capital market, so that many subversive reforms have laws to follow.

Against this background, the SFC also put forward 12 key tasks of deepening the capital market reform at present and in the coming period. It involves all aspects of the capital market, from "improving the multi-level capital market" to "improving the quality of listed companies", "accelerating the opening of capital markets to a high level" and "strengthening investor protection". This is a series of reforms that give consideration to timeliness, system and mechanism so as to promote the optimization of the overall system supply of the capital market.

The SFC's logic is also worth paying attention to, and the chairman of the securities and Futures Commission has repeatedly proposed to explore the way of reform in the direction of marketization, which is also an important label for the SFC.

The chairman of the securities and Futures Commission, Yi Hui man, stressed that the reform must adhere to the problem oriented approach, maintain steadfast and firm confidence, fully learn from the best practices of the world in accordance with the general requirements of marketization and rule by law, respect the market, fear the rule of law, fear professional and awe risk, and pay attention to the efforts of all parties.

It can be predicted that in the next period of time, the capital market will officially enter the operational cycle of comprehensive deepening reform. A capital market that is in line with the direction of development of the new era, standardized, transparent, open, dynamic and resilient is on the way.