The Registration System Of Growth Enterprise Market "Connects The Preceding With The Following" And "Nine Characters And Three Modernizations" Outlines The Direction And Goal Of Capital Market Reform

On August 24, gem 2.0 officially set sail. At the ceremony of listing the first batch of enterprises under the gem reform and pilot registration system, Liu Hefa, member of the Political Bureau of the CPC Central Committee and vice premier of the State Council, delivered a written speech.

Liu he pointed out: "we should gradually hand over the survival of the fittest of listed companies to the market, steadily increase long-term performance-oriented institutional investors, return to the important concept of value investment, promote the full disclosure of information, comprehensively purify the market ecology, and build an honest and law-abiding capital market. At the same time, we should pay more attention to the situation research and judgment and the analysis of the main related factors, strive to walk in front of the market curve and create a benign development expectation. "System building, non intervention and zero tolerance" is a unified and organic whole. We should continue to adhere to the direction of marketization, legalization and internationalization, and do a solid job in improving the basic system of the capital market. "

Among them, the nine character policy of "establishing system, non intervention and zero tolerance" and the development goal of "marketization, legalization and internationalization" have aroused extensive attention of the market.

In the view of insiders, "nine characters and three modernizations" represents the principle direction and goal of securities market reform, which is of great significance to the spread of registration system in the whole A-share market and the deepening of stock reform.

"The reform of the A-share registration system is to bring the rules of the domestic capital market into line with the international ones, and stand on the same starting line with the capital markets of the United States, the United Kingdom and Hong Kong, China, so as to provide more Chinese enterprises with an equal, transparent and efficient choice." Zhang Xiaohong, President of the China Institute of Finance and economics at Zhejiang University of Finance and economics, said.

The GEM Listing Agreement and registration agreement signing ceremony was shot at the listing ceremony of the first batch of enterprises under the gem reform and pilot registration system held in Shenzhen Stock Exchange on August 24. Photo by Xinhua News Agency

"Nine character" outlines the direction of reform

Yi Huiman, chairman of China Securities Regulatory Commission (CSRC), explained the "nine characters" and pointed out that "system building" is an important basis for standardizing market order and optimizing governance efficiency; "non intervention" is an important path to maintain the normal play of market functions, stabilize market expectations and enhance market vitality; "zero tolerance" is an important guarantee for strengthening supervision and deterrence and purifying market ecology.

In fact, from the current series of regulatory measures, the capital market is strictly implementing the "nine word" policy.

In March 2020, the new securities law was officially implemented, which laid a good foundation for "establishing the system"; from the creation of the scientific and technological innovation board before, to the reform of the gem, the registration system completed the transition from the new market to the stock market, and abolished the 23 times price earnings ratio limit on issuance price, which also reflected the "non intervention" attitude; the punishment for illegal behaviors was increased and strengthened The protection of investors further strengthens the "zero tolerance".

In the view of many people in the industry, "system building, non intervention and zero tolerance" are the principles of market construction. They are the basis and premise of each other. They are also the important direction of capital market reform in the future.

Liu he pointed out that the reform of capital stock system and capital market is deepening, and the reform of capital market is also in progress.

In terms of various reform systems, taking the A-share registration system, which is most concerned by the market, as an example, Liu he said that promoting the reform of the gem and pilot registration system is an important decision-making arrangement made by the CPC Central Committee and the State Council, and an important link connecting the preceding and the following in the construction of the capital market. It absorbs the good practice of the registration system reform of the science and technology innovation board, and lays the foundation for the next registration system reform of the small and medium-sized board and the main board.

"The full implementation of the registration system for A-share is closely related to the practical results of the registration system on the growth enterprise market. If the registration system reform of the growth enterprise market is very smooth, then the time node (for the full spread registration system of A-share) will come faster. The reform of the registration system on the gem is crucial for the next step of reform. " China Merchants Securities chief Macro Analyst Xie Yaxuan said.

Wang Jiyue, a senior investment banker, also pointed out: "if the registration system of gem (in the future) is relatively stable, the comprehensive registration system reform will be accelerated, and it is possible that the registration system reform will be comprehensively launched in the next year or so. If it is spread out, the SME board and the main board may be carried out at the same time, because the SME board and the main board use the same set of issuance system, there is no need to divide them into two markets. (in the future, the SME board and the main board) will not have great differences in the basic trading system, delisting system, credit reporting system, and even auditing, and the gem, but there will be differences in positioning, right Companies that meet the positioning of gem and sci-tech innovation board can also be listed in the form of registration system, such as many traditional enterprises. "

Market hot discussion on deepening reform measures

After determining the basis of reform direction, "marketization, legalization and internationalization" are the goals of future securities market reform.

In fact, the market has been looking forward to the "three modernizations". In recent years, financial opening, market-oriented reform of trading system, promotion of long-term capital entering the market, and construction of capital market system have been the topics of considerable concern to the industry.

In terms of marketization, Wang Jiyue pointed out: "the system I am looking forward to in the future is a T + 0 trading level and a short making mechanism. In addition, financial derivatives are needed for long-term investors. Why can't many investors hold stocks for a long time? For example, insurance should be held for a long time, but why not? It is because the short-term return exceeds the expectation, and the long-term holding faces risks. If there are financial instruments to lock in the risk, they may hold it for a long time There is a lack of financial tools. "

In addition, Wang Jiyue also pointed out that at present, the mechanism of inquiry and transfer of scientific and technological innovation board pilot to specific institutional investors is also worthy of attention. If the above policies can be successfully implemented in the science and technology innovation board, it is expected to gradually spread in the A-share market. "All the relevant institutional reforms should be tried first on the science and technology innovation board, and then on the growth enterprise market. If there is no problem in the gem, it can be promoted in an all-round way."

In the field of internationalization, financial opening-up is the most concerned by the market. Xie Yaxuan said: "one of the reform directions I pay more attention to is opening up to the outside world, including foreign investors investing in China, overseas high-quality assets listing in China, and institutional Opening-up - allowing more foreign institutions to carry out business in China, such as asset management, credit rating, etc.; and The other is the entry of long-term funds into the market. In the future, we should further and orderly introduce long-term funds to give play to their value investment and value leading role. "

In terms of the construction of relevant laws and regulations, Tian Lihui, President of the Financial Development Research Institute of Nankai University, believes that in the future, efforts should be made in M & A, refinancing and equity incentive system reform.

M & A is in urgent need of attracting and optimizing the industrial structure of China. It is urgent for China to relax the regulation of M & A and promote market-oriented M & A on the premise of preventing stock speculation in the name of M & A and harming small and medium-sized investors. " Tian Lihui said.

In addition, in Tian Lihui's view, "the financing of listed companies is not only IPO, but also a good enterprise should carry out additional issuance. Refinancing is not only the need of enterprise development, but also the fair pricing of high-quality enterprises can attract new capital and stimulate market vitality. "

Tian Lihui also pointed out that equity incentive is an important means of effective corporate governance. Only by learning to give in to management properly, can the capital grow continuously, the quality of listed companies can be improved, and the wealth of small and medium-sized investors will continue to increase. The dedication of professional managers is an important cornerstone of the continuous vitality of the securities market.

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