SFC Starts The New Three Board Incremental Reform Supporting Policies Will Be Intensive

Since December 13, 2013, the new three boards have officially announced expansion to the whole country, so far it has been over seven years. After a round of mad cows in early 2015, the new three boards began a long bear market. The two tier market liquidity gradually dried up and the market wealth effect dissipated. During this process, the financing function of enterprises gradually began to shrink, and the number of listed companies had a negative growth.

Many participants in the new three board market are expecting incremental reform. Today, the new three boards have to be reformed nodes.

The CSRC also made it clear in public that in recent years, due to factors such as market size, structure and diversified demand, some new situations and problems have emerged in the operation of the new three board market, such as the decline in financing volume, inactivity in transactions, the reduction of listed company application, and the increase in active delisting.

In October 25th, the market looked forward to the final years of reform. At the regular news conference of the SFC on that day, Chang Depeng, spokesman, said that the SFC launched a comprehensive deepening of the new three board reform.

The direction of reform is in line with expectations.

Chang Depeng clearly pointed out that the new three board market as an emerging market has been in exploration and perfection. After the early explosive growth, the market participants gradually become rational, and some listed company that do not meet the requirements of the capital market naturally get out. At the same time, with the development of quality listed company, the institutional arrangement of the new three boards, such as market stratification, financing, trading and investor appropriateness, can hardly meet their development needs. The organic links between multi-level capital market system and interconnection are still not perfect. It is urgent to take comprehensive measures to deepen reform, enhance market power and stimulate market vitality.

Therefore, under the overall consideration, a series of policy measures have been launched, covering various levels, such as market level management, issuance financing, transfer board listing, differentiated transactions and investor appropriateness management, delisting system and strengthening supervision.

Specifically, the reform of the SFC is divided into five levels, namely, optimizing the issuing and financing system, perfecting the market stratification, setting up the selection layer, establishing the listed company transfer board listing mechanism, strengthening supervision and management, and improving the market exit mechanism.

Among them, the public offering, selection and transfer mechanism are undoubtedly long-awaited incremental reforms for the new three board market.

"I did not expect that these long-awaited policies will be launched at a stretch, and regulators are aware of the urgency of reform. The new three board market has no time to wait for the relevant policies to release slowly, and it is the right choice to push it out at one go." Beijing area a medium-sized brokers new three board business person in charge told reporters.

In twenty-first Century, economic news reporters and market participants realized that the five aspects of the reform have fully met the expectations of the market for the new three board reform, and even some reforms have exceeded expectations.

For example, the policy of allowing eligible innovative enterprises to issue shares to unqualified investors is far beyond market expectations. The introduction of this policy means that the level of public issuance of new three boards is not only the selection layer of previous rumors, but also extended to the enterprises of innovation level and expanded the scope of beneficiary Enterprises.

However, in all reforms, some sensitive market participants found that the five reform did not mention the core downward threshold problem. In fact, this change is hidden in other expressions. In the future, the threshold of differentiated investors will be set up with the introduction of the selection layer.

Clear positioning dispute

However, no matter how the policy changes, the core of the development of the new three board market for many years and the progress of the policy is the positioning of the new three boards. This reform has officially ended the swing of the new three board positioning.

Peng Hai, a new third board analyst at Lian Xin securities, told reporters on twenty-first Century economic report: "the significance of this deep reform to the new third board is mainly to clarify the positioning of the new three boards. Although it is clear that the national share transfer system is a national stock exchange place, the new three boards are closer to the primary market because the market participants take the main board IPO as the main objective. The reform of the selected layer and supporting system clearly defines the position of the new three board market and the independent market.

Peng Hai further indicated that the core of the new three board status lies in the establishment of the transfer mechanism. "Establishing a mechanism for listing the transfer board and improving the construction of multi-level capital markets. Since 2017, the number of new IPO enterprises has reached 68, and the declared enterprises have accounted for about 20% of the total reporting enterprises. But before the new three board enterprises reported the main board IPO cross market system did not effectively link up. The establishment of the transfer mechanism can speed up the construction of multi-level capital market and define the positioning of the new three board market. He thought.

Chang Depeng also made clear that the introduction of the reform by the SFC will make the positioning of the new three board market clearer and the market structure more complete. Differentiated services and regulatory mechanisms are more in line with the characteristics and development needs of SMEs, so that market functions can be effectively brought into play, thus promoting the gradual improvement of the multi-level capital market system and further serving the high quality development of the real economy.

Undoubtedly, the settlement of the new three board positioning problem will straighten out the development path of the new three board market in the years ahead, and further promote the clear definition of the function and location of the multi-level capital market in China.

Market expects supporting policies

In fact, in October 25th, the SFC announced that the comprehensive reform of the new three boards only started the firing gun of the reform, and clarified the direction of the reform of the new three boards.

Zhou Yunnan, the founder of Nanshan investment, told the economic news reporters in twenty-first Century the first time that the reform news was released. This time, the five aspects of the reform proposed by the SFC are the guiding roadmap for reform in the coming period, but after that, it is necessary to keep an eye on the implementation of the supporting policies.

For the follow-up of supporting policies, the national share transfer system will give the market a reassurance. The relevant person in charge of the national stock transfer system told reporters that preparations are now in full swing.

According to the reporter's understanding, on the rules preparation, the national stock transfer system related to the reform has been drafted and will be publicly available to the market. In terms of technical preparation, the technical system of issuing underwriting, issuing audits, and trading has completed the main function development.

It is worth noting that in the aspect of personnel preparation, the national stock transfer system has been set up to be responsible for the public issuance and entry into the selective review department, equipped with full-time censors, and will also start the selection of internal and external audit experts in the near future.

"The national stock transfer system has been in preparation for a long time, and we understand that the preparatory period of this scheme has been over two years. Therefore, without accident, the new three board reform will go forward quickly, and the supporting policies and rules will come out." An insider close to regulators told reporters.

On the other hand, the SFC emphasizes that we should stick to the general keynote of the steady progress and take full account of the new three boards' ability to bear and the relationship with other sectors of the capital market, and actively push forward the key reform tasks of the new three boards.