Wei Shanwei, Executive Vice President Of Huajing Securities Co., Ltd.: The Registration System Reform Of Gem Will Be More Targeted.

Today, the establishment of the science and technology board has reached 1st anniversary, and the comprehensive reform of the new three boards has just started. In the reform of the 12 tier multi level capital market of the SFC, gem is still in the stage of waiting.

Compared to Ke Chuang Chuang is a newly established market, the reform of gem will be the plate of incremental reform.

The transformation of the system will also be transmitted to the stock market. In fact, the establishment of the science and technology board has opened a reshuffle of the brokerage structure. Undoubtedly, the advent of the gem registration system will accelerate the transformation.

The capital market will usher in a great change. Where will the reform of the gem registration system go and where will the investment banking business go? With these questions, in twenty-first Century, the economic report interviewed Mr. Wei Shan Wei, executive vice president of Huajing securities and head of investment banking.

Wei Shanwei. Data map

Necessity of reform

Twenty-first Century: can the gem now achieve the original intention when it was created ten years ago? After ten years of development, what kind of depression have accumulated in the whole market? Is this the most appropriate time to implement the reform of the gem?

Wei Shanwei: after ten years of development (since October 2009), the proportion of high-tech enterprises accounted for more than 90% of the composition of gem enterprises, and the proportion of strategic emerging industries accounted for more than 75%. This accords with the expectation of "supporting the development and growth of small and medium-sized enterprises, such as small and medium-sized board and GEM board" when the gem was established.

But now ten years later, looking back, the whole system of issuing, pricing, and auditing of gem is similar to or similar to other standards. Although there are some differences in terms of technical details, there is not much difference in essence. This also leads to the growing convergence of the gem and the motherboard and small and medium boards, and lack of their own characteristics.

From all over the world, gem boards, including those in the United States, are obviously different from the motherboard. They should shoulder different historical missions. This has led to the fact that although the gem has sprung up a large number of high-quality companies, advanced and leading new economic companies are relatively few.

At present, the core of the reform of capital market should be placed in the Chinese market where the PE/VC capital is rapidly growing in the private market.

Twenty-first Century: last issue, you talked about the positioning of the gem. This is also the market's great concern for this gem reform. From your understanding, what kind of orientation should we stick to in this round of reform?

Wei Shanwei: from the perspective of gem, there are plate aggregation effects in the history of gem, such as precision manufacturing, medical devices and software companies. Therefore, I suggest that gem can further promote the formation of plate aggregation effect along the relatively relatively shaped plate direction.

In addition, we hope that the gem can be more inclusive. Now there is a voice in the market that we should lower the threshold for listing of GEM companies, but I think it is unnecessary, but should increase the inclusiveness of the growth enterprise market. Inclusiveness is reflected in what indicators and what aspects should be considered, and which companies should be welcomed and promoted to go public, not too strict with the hardware conditions of enterprises, and more let the market choose.

Twenty-first Century: unlike the science and technology board registration system, the growth enterprise market is not a newly established sector, so this means that the reform of the registration system is based on the stock market reform. What do you think of this?

Wei Shanwei: Although the gem has the tendency to converse with the motherboard and small and medium-sized boards, but after running for 10 years, it has accumulated some experience, data and lessons. From this perspective, the reform of the gem registration system will be more targeted, and the probability of stability and success will be greater.

In addition, the registration system reform in China itself is not a one-step reform in a subversive way, but a gradual gradual reform on the basis of stock. I believe that at least 1-2 years ago, the Shenzhen Stock Exchange has been studying and summarizing the stock problems in the operation of the gem. Based on this, I believe that the reform of the registration system of gem will be more secure and effective in the short term.

Twenty-first Century: will the registration reform bring about great changes to investment banks, especially the IPO business?

Wei Shanwei: the attention that the market will focus on registration reform focuses on pricing is one-sided. The real market-oriented reform in the future requires investment banks to have an in-depth understanding and view of the nature of the company's business, especially at the strategic level. In addition, in the future, enterprise growth can also give customers certain suggestions or opinions, and even to a certain extent, can reverse the development process of enterprises, and affect the investment strategy of customers.

In addition, registration system reform will also impact on the research and sales system of the two tier market. At present, some new brokers have begun to consciously establish a research and sales system that is consistent with Chinese characteristics and accords with China's future registration system. However, such institutions are few and far between the financial institutions in the global market.

New competition pattern of securities industry

Twenty-first Century: is the future capital market change a good opportunity for small and medium brokerages to overtake?

Wei Shanwei: I believe that for all small and medium brokerages are important opportunities, such an opportunity can not even be said to be overtaking the curve, but to change the track to compete.

That is to say, small and medium brokerages may have a preemptive advantage, for example, they can get a window period within two years. Whether they can seize the opportunity in the past two years, increase rapidly in business volume, and more importantly, have a representative work. Because there is little opportunity to exceed the traditional head broker in quantity, but without a certain amount of business, there will be no market influence.

Therefore, it is necessary to expand the team. At the same time, it is necessary to ensure that the movement is not deformed while the quality of the team is not declining, and it has its own characteristics to ensure that its characteristics are not unduly diluted, so as to ensure that the original advantages can be exerted and convincing representative works, so as to provide sufficient support and foundation for the next stage of competition.

Twenty-first Century: from your judgement, how long is the window of competition in the future?

Wei Shanwei: Based on this judgement, the competition of investment banking in the registration system reform will take 18 months in the next 24 months. It will be the 24 month after the opening of the science and technology board. These 24 months will become very important, because the market will gradually change and mature in the next 24 months, so that we can see what the new rules are.