Industry Interpretation Of The New Regulation Of Refinancing: The Pricing Power To The Market.

In December 5th, the "Southern financial international forum" held in twenty-first Century by the central broadcasting and TV station, Guangdong, Hongkong and Macau headquarters and the southern financial and economic media group was held in Guangzhou. On the theme forum of "decoding A shares listed companies' high quality development" held in the afternoon, Liu Weigang, director of information secretaries of China, self strengthening of Dong Liang's shares, Zhejiang Province's new vice president, Xu Kefei, director general of GF Securities Investment Bank Zhu Baoli, discussed the opportunity and risk control of A shares refinancing.

In 2019, SMEs still faced financing difficulties. Against this background, the SFC recently issued a draft of the new rules for refinancing the motherboard and gem. The new draft articles are much more relaxed than before. Combined with other supporting policies in recent years, the easing of policy has raised new opportunities and challenges for the financing and business development of enterprises.

Zhu Baoli, director general of GF investment bank, believes that there are many bright spots in the new regulation of refinancing, such as the change from 10 percent off to 20 percent off, and from 35 to 10. Judging from the original intention of the policy, the policy of refinancing supervision is moving towards the same mindset as the IPO registration system, so that the real pricing power and decision-making power can be handed over to the market. This is a more obvious feature of the new regulation of refinancing, and it is also a means and policy to supervise the vitality of the market in the future.

"Next year or even the next period of time to refinance scale and quantity, the forecast is still more optimistic. But what we need to pay attention to is that many investors lost more seriously in the past three years by participating in the refinancing actions of listed companies. This is a process of gradual recovery, but its advantage is that when the listed companies are doing refinancing issuance in the future, the behavior of finding arbitrage through the policy or the two tier market will be less and less, which is conducive to the original capital market tracing. Zhu Baoli said.

In response to the setbacks in investor confidence, Zhejiang new net Xu Xu Fei believes that the financing scale and financing speed of the refinancing method represented by fixed increase began to fall off after the second half of 2017, until a lot of upside down happened in 2018. In fact, for the confidence of many institutional investors in the capital market, the most important reason is the superposition effect of policies, such as the management of non-public offering, the management of securities issuance and the reduction rules in 2017.

"For example, institutional investors have been locked up for a long period of time. After the lock period, there are still many restrictions on their reduction. This is a long-term process of institutional investor confidence. Looking back, we can see that the refinancing policy has been liberalized, and whether the follow-up regulators will have a synchronous consideration and adjustment on supporting policies such as reduction, and it is also worth looking forward to. Xu Kefei said.

At present, the keynote of the overall regulatory policy is loose adjustment, and enterprises have many expectations for the introduction of supporting policies.

Shenzhou information Liu Weigang believes that the discussion of refinancing policy adjustment can not be isolated and independent view. It is necessary to combine the past regulation of this period with a series of adjustment policies for listed companies and capital markets. This adjustment has two characteristics: first, policy supervision is oriented towards the future. For example, this refinancing is to transfer pricing and demand to listed companies, funds and private placement subscribers, or to transfer the market's rights to the market. The role of future market allocation of resources will become bigger and bigger. That is, supervision faces the future; second, it is a problem oriented. The policy of refinancing and subsequent reduction in the first two years has formed a certain high pressure on the market. This policy has adjusted the previous constraints.

"On the other hand, there are only 40 million enterprises in China. There are only more than 3700 listed companies. These unlisted companies often follow the listed companies in the upper and lower reaches of an industrial chain, but they are facing greater difficulties and less financing means. If they fail to return to a good financing environment, the business development of listed companies will still be blocked, so that a virtuous circle of" financing business development refinancing "can not be formed. Liu Weigang suggested that SMEs should explore more diversified ways of securitisation in the way of withdrawal of funds, such as converting accounts receivable, inventory and other contents into cash withdrawal funds in an appropriate way.

Liu Weigang also suggested that business operators should take a look at the trend of the whole industry from time to time, and do not blindly do a lot of extreme things. "We want to thank this era. The background of reform and opening up in the past 40 years is a necessary condition for many entrepreneurs to become a big tycoon from scratch. The development of enterprises can not be separated from the dividends of the times. But now our background is facing new problems. From the two digit GDP growth to the low growth rate, a marked change has taken place. In the past, many enterprises may have been developing blindly because of the rapid development. However, with the changing background of the times, the historical path of the expansion of the production cost by the high cost financing in the past may fail. Entrepreneurs should pay more attention to the general trend of the development of the industry, the general situation of macro environment, and then take some reasonable financing actions according to their own situations and plans, and adopt appropriate financing tools. Liu Weigang said.

Despite the fact that the policy is tight and loose, the choice of refinancing tools has not changed much. Enterprises should choose tools according to their own development, market and investment needs. In recent years, changes in the economic structure, market volatility and policy adjustment are the opportunities for investors to mature in enterprises and capital markets. The listed companies should understand that the essence of refinancing is for the long-term development of enterprises.

"There will be some voices to discuss policy changes too fast, but from a regulatory point of view, and hope that policies can last for a long time, but capital market participants often use regulatory policy arbitrage, more and more participants use policy arbitrage will accumulate more and more risks, forcing policies to constantly adjust. But if an enterprise can do its best and keep its original intention, it will enable the dividend policy to continue and enable investors to enjoy the dividends brought by the policy. Qian Ziqiang said.

On the other hand, the capital market is quite concerned about the efficiency of the use of funds after the financing of enterprises and whether it is really implemented in the past. Especially as a high-tech enterprise, the value of the cash flow created by the project may not be as clear as that of the traditional industry.

Xu Kefei said: "as an innovative enterprise responsible for investors, Zhejiang University net new users see the pain points and application scenarios, will make technical input, not for pure innovation and innovation. When the financial return is not so significant, investors need to pay more attention to whether the technology is really applied and landed, and whether it really solves the problem, so as to judge whether the funds have been efficiently used.