Pressure And Opportunity Coexist With The Ten Year Reform Of Gem

The gem will usher in an important 10th anniversary milestone. In ten years, the number of GEM companies increased from 28 to 775, with a total market capitalization of 5 trillion and 680 billion yuan, and gathered a number of influential and competitive new industry companies. They played an increasingly important role in supporting the creation of dual enterprise groups, optimizing the entrepreneurial innovation ecosystem, leading the industrial upgrading and transformation, and accelerating the transformation of new and old dynamic energy.

Today, the Shenzhen stock exchange is under pressure to compete with other exchange systems, but on the other hand, with the development plan of Guangdong Bay and Macao Bay and the opinions of the CPC Central Committee and the State Council on supporting the construction of the leading demonstration zone of socialism with Chinese characteristics in Shenzhen, the capital market construction represented by the gem has also ushered in a new historical opportunity.

Under pressure and opportunity, where will the next station of gem start after 10th anniversary?

Institutional reform and Competition Opening

One of the important triggers of this round of capital market reform is undoubtedly the reform of the distribution system promoted by the Hong Kong Stock Exchange in 2018. In this round of reform, the HKEx introduced the system of different rights in the same stock market, supported the failure of the biotech enterprises to enter the capital market and made the HKEx a second listing system.

Behind this is the HKEx's keen grasp of the positioning of the next stage of the capital market and the type of companies that the exchange should focus on.

"Obviously, the reform of the Hong Kong stock exchange is a decision made after the failure of Alibaba and some important new economic companies to make decisions. This is a round of economic growth, whether in the domestic market or in the US market, when the new economic enterprises grow to the stage of landing capital market, the exchange system straightens out the system to embrace and greet this kind of enterprises better." Beijing area a medium-sized joint venture brokerage investment bank official told reporters.

After the introduction of the new system of HKEx, the remarkable results also attracted a number of high-quality companies in the territory to go to the Hong Kong stock exchange for listing transactions. At the same time, they started the system competition of this round and the domestic exchanges, especially the Shenzhen Stock Exchange.

In early 2018, due to a series of reforms of the HKEx, the high level of the Shenzhen Stock Exchange also made frequent statements to promote the reform of the gem, which included the consideration of introducing different rights of the same stock and improving the inclusiveness of the gem.

But for a long time, the reform of the growth enterprise market has not been promoted, especially the incremental reform. However, the system competition launched by the HKEx has also accelerated the reform of the domestic capital market to a certain extent. In November 2018, the incremental reform of the domestic exchange opened, and the science and technology board was born and will be registered.

As an important other pole in the domestic capital market, the Shenzhen Stock Exchange obviously can not miss the opportunity of the incremental system reform. On the 10th anniversary gem, the reform of the gem registration system will speed up. More importantly, compared with the reform of the Hong Kong Stock Exchange and Shanghai Stock Exchange, the Shenzhen Stock Exchange's reform is incremental and stock parallel. From the point of view of reform, it is a norm involving several exchanges. The bigger family.

In this regard, Li Zhan, chief economist of Zhongshan securities, also believes that the reform of Shenzhen stock market may focus on two dimensions: on the one hand, improve the existing system reform of the gem. The positioning of gem is to provide financing and equity trading platform for SMEs with high growth and high-tech enterprises. From the development process of the gem since October 2009, the development scale of GEM has been increasing, but it also exposes structural problems in the previous top-level design. The "speeding up and improving the gem listing, refinancing and merger and reorganization system" mentioned above is expected to improve the existing problems of gem.

On the other hand, it is promoting the registration system in the growth enterprise market. The implementation of the registration system of the science and technology innovation board is not only an experimental field for incremental reform, but also a breakthrough for promoting the incremental reform to the stock reform. At present, the registration system implemented in Shanghai Stock Exchange has basically been formed from circulation, transaction, information disclosure to supervision and other processes, systems and laws and regulations. At present, the science and technology innovation board is running relatively stable and has the basis of replication and popularization. There will be no obvious obstacle to the promotion of registration system on GEM, at least at the technical and institutional level, and the future registration system may continue to be promoted on the Shanghai and Shenzhen motherboards. Li Zhan said.

"I believe that when pushing forward the registration system reform, a number of experimental dividend policies that have been carried out by the science and Technology Board will also be applied to the gem, such as the different rights of the same stock, the permitted red chip structure, the unprofitable enterprises listed on the condition, the listing and so on, and even based on the special background of the gem stock reform, the market can also expect the Shenzhen Stock Exchange or the innovation that is specifically matched with the growth enterprise market. System. The head of Beijing securities brokerage investment bank said.

It is foreseeable that in the case of the Shenzhen Stock Exchange's growth enterprise market reform advancing as scheduled, China's capital market will form a linkage between the Shanghai Stock Exchange, Shenzhen Stock Exchange and Hong Kong Exchanges. The best era for capital market is coming for domestic enterprises, especially for science and technology enterprises and new economic enterprises.

Location advantage in Tai Wan District

In the process of exchange growth, the system is an important competitive advantage, but we can not deny the support of location factors to the development of exchanges. Obviously, the geopolitical advantage of the Shenzhen Bay exchange area is currently an advantage that its service enterprises, especially the science and technology enterprises and the new economic enterprises can not ignore.

It is worth noting that with the further development of Shenzhen, Hongkong and Macau, and the construction of the leading demonstration zone of socialism with Chinese characteristics, the capital market construction represented by the gem has also ushered in a new historical opportunity.

The Great Bay area has given the Shenzhen stock exchange a great advantage in serving the science and technology enterprises. As one of the regions with the highest openness and the strongest economic vitality, Guangdong, Hongkong and Macau is the most open and highly developed region in China. At present, there are more than 4 high-tech enterprises.

According to the data provided by the Shenzhen Stock Exchange, the proportion of high-tech enterprises in the big bay enterprises is 94%, and the proportion of strategic emerging enterprises is 76%, mainly in the Internet and the new generation of information technology industry, biomedicine and high-end equipment manufacturing, such as the 5G industry chain represented by Xinwei communications, Gao Xin Xing and Shuo Bei De, and so on. The big data, cloud computing and network security industry chain represented by Shenxin, Europe and win time wins has formed the medical device industry chain represented by MINDRAY medical, Kangtai biology and Wanfu biology.

In addition, the financial market attaches great importance to the polymerization effect. The big bay area attracts a large number of venture capital, securities, banks and other financial institutions to form a equity investment culture, and promote the deep integration of industry and capital, providing important support for the gem.

From the perspective of venture capital institutions, the market mechanism of gem in price discovery, resource allocation and information disclosure provides a good platform for capital investment and exit. As of now, there are 6279 private investment institutions in Guangdong, and the scale of management assets is up to 2 trillion and 360 billion yuan. 80 big bay GEM companies invested 4 billion 164 million yuan in venture capital before listing. " The Shenzhen Stock Exchange said.

As for the location advantage of Shenzhen GEM, Li Zhan also pointed out: "Shenzhen capital market and Hongkong capital market in China are not only close to physical space, but can attract talented people and introduce advanced management experience and technology by location advantage. Moreover, in the context of promoting the construction of the first demonstration area and the construction of the big bay area of Guangdong, Hongkong and Macau, Shenzhen can also make use of the policy advantage to adopt the policy. The interconnection of Hong Kong and Macau financial markets will promote Shenzhen's capital market in line with international standards in terms of issuing, trading, mergers and acquisitions, refinancing and so on. It will enhance the level of internationalization of Shenzhen's capital market and provide more diversified investment and financing channels for domestic and foreign investors.

The Shenzhen Stock Exchange also obviously wants to take advantage of this reform to further deepen the big bay area. The Shenzhen Stock Exchange has told reporters: "the gem always focuses on the construction of the modern industrial system with the international competitiveness in the big bay area, attracting the" two high four new "high-quality enterprises listed in the big bay area. As an important platform for direct financing, gem provides IPO policy support that is more in line with the development of growth oriented and technology-based enterprises, continuously helps enterprises to list and finance, and continuously expands the channels of capital formation, guides capital to inject new kinetic energy into new industries and new formats, speeds up the transformation of technology into advanced productive forces, and realizes a virtuous cycle of science, technology, capital and real economy. It is one of the first choice for listed companies in Tai Wan high tech, high growth, new technology, new industry, new format and new mode.

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