The Most Important Part Of Deepening The Reform Of Capital Market Comprehensively: Improving The Quality Of Listed Companies Through Multiple Measures

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The deepening of the capital market reform continues to push forward. Now regulators are exposing their actions at the level of listed companies. It is understood that the SFC recently issued the "action plan to improve the quality of listed companies" (the action plan), and strives to make the overall appearance of listed companies greatly improved through 3-5 years' efforts.

In recent years, the issue of "quality" of listed companies has become the focus of attention of all parties.

Shortly after the chairman of the SFC was fully appointed to the post of chairman of the SFC, it was clear in public that it was the most important task for him to improve the quality of listed companies. Therefore, the issuance of the action plan corresponded to the attention of the SFC on "improving the quality of listed companies".

Recently, when we went to Zhejiang to investigate and visit the listed companies on the spot, and chaired some Symposium of the listed companies and listened to the opinions and suggestions on improving the quality of the listed companies, Yi said, "improving the quality of the listed companies is a great systematic project. We need to strengthen the work coordination and take concerted efforts by the listed companies, the various market players, the regulatory bodies, the local Party committees and the government. The SFC has developed an action plan to improve the quality of listed companies and is pushing ahead with relevant documents.

Cornerstone reform

Regarding the regulatory issues of listed companies, Yi will first mention that when it participated in the 2019 annual meeting of the association of Listed Companies in May this year, the plan of action also took shape before and after the event.

At that time, Yi will fully emphasize that in the long run, the quality of the fundamentals of the economy and the quality of listed companies should be determined. Capital market is a barometer of the real economy. This function is mainly reflected by the quality of listed companies. The capital market is the link between entities and capital, linking the financing parties and investors. The quality of listed companies is the pillar and cornerstone of supporting the market, and it is the micro foundation for promoting a virtuous circle of Finance and real economy. Without a good listed company, it is impossible to have a good capital market.

From the above statement, it is not difficult to see the position of listed company governance in the capital market reform and the supervision of the SFC. On the other hand, the emergence of a number of listed companies since 2019 has also made the supervision have to accelerate the pace of reform.

For a long time, the quality problems of listed companies are not simply the problems of the listed companies themselves, including the IPO system, the delisting system, the quality of intermediary practice and so on, which can affect the governance of listed companies. Nowadays, under the background of comprehensively deepening the reform of the capital market, the quality improvement of listed companies can be comprehensively promoted.

"Improving the quality of Listed Companies in the short term is difficult to achieve and effective. Now it is appropriate to use the opportunity of deep reform to push forward the reform of listed companies. From the point of view of importance, the importance of the governance of listed companies can be seen in the special action plan." Peng Hai, a joint securities analyst, thinks.

Reporters learned that the "action plan" issued by the special emphasis on the "combination" concept, that is, the four "combination", namely: the combination of endogenous development and external promotion and protection, highlighting the first responsibility of listed companies, enriching the external system supply, optimizing the increment and adjusting the stock, integrating the import and export, solving the outstanding problems and building long-term mechanism, basing on the present, focusing on the long term; combining the regulatory standard with the coordination and promoting the precise supervision, strengthening the policy coordination, and promoting the formation of strong resultant force.

"Listed companies are the core carriers of the capital market. Improving the quality of listed companies is a complex and widely involved issue, and improving the quality of listed companies through a number of initiatives will also push the initiatives of the capital market reform to a certain extent. Therefore, we should not separate the reform and segmentation of the quality of listed companies. This reform is related to many other reforms and affects each other. " Beijing area a medium-sized brokerage investment bank business executives pointed out.

Zhao Xijun, CO director of the finance and Securities Research Institute of Renmin University of China, said that the maturity and development of a market can not be achieved only by the supervision of a department of the SFC. It is suggested that the relevant documents be considered at a higher level, and financial support can be given to public utilities and public services. There should be comprehensive and systematic arrangements for the construction of financial infrastructure such as trading system, clearing service and settlement system, including interconnection with overseas systems, and the use of scientific and technological forces to better build infrastructure.

Further implementation of deep reform measures

The reporter was informed that the plan of action issued by the SFC is divided into seven major aspects, namely, the core contents of information disclosure effectiveness, corporate governance standardization, market basis system reform, normalization of delisting, dissolving potential risks, improving supervision effectiveness and optimizing ecology.

Specifically, it includes: first, to enhance the effectiveness of information disclosure guided by investor demand; the two is to urge the "key few" to diligently and conscientiously improve their management level; three, to promote the experience of capital building board, and to promote the reform of the capital market as a whole; four, to persist in the normalization of delisting, and to decide clearly the inferior quality resources; five, to solve the outstanding problems, to guard against and resolve major financial risks; and six, to strengthen precise supervision and enhance the effectiveness of supervision; seven is to optimize the four ecosystems of development, intermediary, public opinion and culture, and form the resultant force of the whole society.

Some market participants believe that the core of many initiatives to improve the quality of listed companies is to further promote the deepening of the capital market reform.

For example, some of these initiatives have also been mentioned in the process of reform and promotion in other fields, such as "promoting the experience of science and technology innovation board, promoting capital market reform in a coordinated manner" and "persisting in the normalization of delisting, and resolutely clearing inferior resources".

In promoting the experience of CB, the SFC indicated that we should give full play to the role of the Chuang Chuang board in testing fields, and promote the reform of gem and pilot registration system. We should enhance the inclusiveness of IPO and the standards of restructuring and listing, relax the restrictions on the locking period of non-public offering, optimize the payment and supporting tools for mergers and acquisitions, and enhance the attractiveness of the capital market.

In response, the head of investment banking in Beijing said: "this content is highly related to the quality of the listed company, but it is not only related to the quality of the listed company. In the process of promoting the experience of the Science Board, many other areas of reform are also advancing together. Therefore, we can say that the measure to improve the quality of listed companies is to further promote the comprehensive deepening of the reform of the capital market.

In addition, the action plan also set up a relatively targeted governance content of listed companies. If we want to enhance the effectiveness of information disclosure under the guidance of "investor demand", we should request relevant departments to work together to explore the establishment of a comprehensive regulatory framework for financial information and prevent false disclosure. Simplifying disclosure rules, carrying out differentiated industries and disclosures, ensuring the authenticity of information disclosure, and emphasizing that it is easy to understand.

In addition, "urge the" key minority "diligently and conscientiously, improve the level of management and management is also specifically for the current listed company governance level is generally not high request.

In the plan of action, it is pointed out that we should promote the improvement of the tax system and supporting arrangements for equity incentive, enhance the effectiveness of incentives, strengthen the control of funds, seals and financial affairs, increase personal accountability, and strengthen civil compensation, so as to encourage and restrain the "key minority" to play a key role.

At the same time, the reporter learned that, in view of the existing problems in the management of listed companies, the SFC will organize a special activity in corporate governance in all listed companies, and enhance its work in phases by self-examination, self correction, on-site inspection and rectification.

As mentioned above, governance of listed companies is a complex and short term hard work, and how to understand the quality of listed companies is also the key to regulatory governance.

In response, Cao Yong, deputy director of the securities and Futures Commission, said in a recent public speech that "the quality of listed companies is rich in content, including operational efficiency, accounting basis, governance capability and information disclosure."