"Double Track" Concurrency Conjecture: Who Will Become The Priority Area Of Reform?

The reform of stock issuing system is not a smooth road.

In the face of the new securities law to be implemented in March 1st and the entry of registration system, regulators are giving the market positive signals of institutional reform. The securities and Futures Commission has said recently that the approval system will be "parallel" with the registration system in the coming period, which will undoubtedly become an important signal for the market to follow the reform path of the stock issuing system.

In the view of the industry, the above statement clearly indicates that the implementation of the securities law is not equal to the registration system reform, and it will soon be fully rolled out. This has stabilized the anticipation of the increase in the supply of new shares by the registration system to a certain extent. On the other hand, the reform of the book registration system accompanying the approval system will also be a gradual and progressive process.

In twenty-first Century, the economic news reporter learned from many investment bankers that despite the impact of the new crown virus pneumonia, many IPO projects supporting the market reform are still in the process of intense promotion. According to analysts, new three boards and gem are expected to become the first areas of reform in the process of registration reform.

The reform of stock issuing system is not a smooth road. Gan Jun system

The continuity of "two track system"

With the clarity of the new securities law on the registration system in the top-level design, the era of dual system of approval + registration is coming.

The Commission's responsible person said recently that the approval system and registration system will operate in parallel in the coming period.

"The new securities law provides for the registration of securities issuance, and authorizes the State Council to stipulate the specific scope and implementation steps of the registration system." The responsible person of the SFC said, "it is still expected that the registration system for gem, especially the main board (medium and small board), will take some time. After the implementation of the new securities law, these plates will continue to implement the approval system for a period of time. The approval system and registration system are not contradictory to the relevant provisions of the new securities law.

In the industry view, this statement helps to stabilize the market for registration reform and the expected market impact.

"The expectation of the market for registration reform is often reflected in the increase in the supply of new shares, which will bring some disturbance to investor sentiment in the short and medium term." A listed broker strategy analyst pointed out.

"The dual track system is in line with the gradual reform pace of registration system, and it also helps stabilize market sentiment." The strategy analyst said, "the registration system will bring the anticipation of new supply of new shares to accelerate, and the recent outbreak will also impact investors' confidence to a certain extent. It is clear that the registration system will not push forward in a storm like manner, which is equivalent to giving the market a reassurance in anticipation of the reform."

Although the dual system of registration plus approval system will still operate within a certain period of time, in the view of investment bankers, registration system will still be the reform direction of the stock issuing mechanism.

"The direction of registration system reform will not change." An investment bank official close to regulators said, "last year, we launched a pilot reform of the science and technology innovation board. Practice has proved that the reform has been successful in general. Some of the science and technology enterprises have been overvalued and fluctuated, but with the increasingly full market game, the pricing of the market has gradually returned to a reasonable level. At the same time, this phenomenon has also played a role in encouraging the financing of the high quality science and technology enterprises."

In fact, recent actions by regulators have shown that the direction of registration reform has not changed.

For example, reforms related to refinancing have already been step-by-step. In the evening of February 14th, the SFC formally issued revised refinancing new rules to further expand the issuance conditions of gem refinancing, lower the threshold for issuance, and provide more marketable pricing conditions for refinancing investors.

The policy of further deregulation and refinancing can also be seen as a way to pave the way for the expected registration system reform, because registration is not merely a procedural change, but the core of which is a change of the regulatory authorities in judging the listing and application conditions of enterprises. The investment bankers close to regulators said, "for example, in this reform, the requirements for two consecutive years of profit growth have been abolished, which is obviously consistent with the direction of registration reform."

The order of reform remains to be examined

According to the position of regulators, the registration system is a step by step reform.

In the industry view, after the initial success of the reform of the science and technology board, the new three board and gem reform will become the focus area of registration system reform.

Take the new three board market as an example, according to the twenty-first Century economic news reporter from a number of investment bankers, the stock transfer system has been issued or orally notified many times, and should report on the new three board reform projects in time, and said that the reform of the new three boards will continue to advance.

"Despite the impact of the epidemic, the reform of the new three boards will not be affected, and the report on the related projects of the reform will continue to be carried out." Beijing, a state-owned securities brokerage investment bank said, "mainly related to the reform of documents and systems are landing, the rest is in accordance with this methodology to implement."

In the reform of the new third board selection layer, the release of public offerings to non specific investors is also regarded as an important part of the registration system reform from bottom to top.

"At present, the reform of new three boards is advancing very fast, and is likely to become the next area of registration." The above coupon businessman said, "although it is clear that the small IPO needs approval, the material is not reported to the issuing department, but is transferred to the stock market. That is to say, the main body that needs to make appropriate audit on the appropriateness of the enterprise is the stock transfer system instead of the inside."

"This process has been similar to the science and technology board, and the appearance of the selection layer has been equivalent to the registration system reform." The brokers said frankly.

At the same time, the gem is also regarded as an important area of priority in implementing the registration system reform.

"If we can give priority to the corresponding registration system reform, we will be able to win more listed companies that are in line with the spirit of registration system, so the Shenzhen Stock Exchange will definitely strive to push ahead with the reform as soon as possible." The investment bankers close to the regulators said, "although the relevant documents on GEM reform have not been formally formed, the deregulation of related policies such as backdoor and refinancing of the listed companies has already presented this signal. It is expected that some progress will be made in the second half of this year.

In addition, the registration system reform of the refinancing link is also highly concerned by the market.

"Whether it is the first or the issuance, it will be expected to gradually shift to the registration system. On the reform path, the difficulty of the registration system reform of refinancing is actually less than IPO to a certain extent, and it is easier to get ahead." A Shanghai investment bank manager also said, "by contrast, the main board, small and medium-sized board and other large market scale, registration system needs more preparation conditions."

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