China Securities Regulatory Commission (CSRC) Stated That It Would Take The Opportunity To Comprehensively Promote The Dismantling Of Registration System Experts Or Complete The "Three Steps" In Two Years

On the evening of October 15, entrusted by the State Council, Yi Huiman, chairman of the CSRC, reported to the Standing Committee of the National People's Congress on the work related to the reform of the registration system for stock issuance, pointing out that it is necessary to "go all out to promote the pilot reform of the registration system".

Yi Huiman said, "after the pilot projects of the science and technology innovation board and the growth enterprise market, the conditions for implementing the registration system in the whole market are gradually met." the CSRC will seriously implement the decision-making and deployment of the Party Central Committee and the State Council, under the unified command and coordination of the financial commission of the State Council, deeply summarize the pilot experience, timely study new situations, solve new problems, and select the appropriate time to comprehensively promote the registration system reform ”。

As soon as the news came out, it immediately triggered a wide discussion in the market.

The 21st century economic news reporter learned from interviews that, from the perspective of industry insiders, from the perspective of the operation of the pilot registration system of the science and technology innovation board and the growth enterprise market, the main system arrangement of the registration system reform has been subject to the preliminary test of the market. In the next two years, the registration system may be implemented in the main board and small and medium-sized boards.

Zhang Yan, a senior researcher at baishaquan M & A Financial Research Institute, told reporters of the 21st century economic report that "if the specific rules of the registration system are run in and optimized quickly, and the market has a high degree of implementation and acceptance of the rules, then it is optimistic that the transition period for the full implementation of the registration system will be over in two years."

Form a registration system framework in line with national conditions

Since the first batch of sci tech Innovation Board companies were listed on July 22, 2019, and then the gem reform and pilot registration system were officially implemented on August 24, 2020, the capital market registration system reform has gone through an important "two steps", and the third step "whole market registration system" has also triggered widespread market reverie. A package of plate reform, basic system reform and the reform of China Securities Regulatory Commission (CSRC) has been launched A new situation of deepening the reform of capital market.

According to Yi Huiman, the CSRC has initially established a registration system structure of "one core, two links and three market-oriented arrangements" based on the actual situation.

One core is to take information disclosure as the core, which requires issuers to fully disclose the information necessary for investors to make value judgments and investment decisions, so as to ensure the authenticity, accuracy and integrity of information disclosure; "two links" is to divide the examination and registration of the exchange and the registration of the securities Regulatory Commission, each with its own emphasis and connection; and the "three marketization arrangements" are diversified and inclusive We should establish the conditions of IPO, establish a market-oriented mechanism of IPO underwriting, and build an open, transparent and predictable audit and registration mechanism.

In the view of industry insiders, this arrangement is in line with China's national conditions, which is based on the basic connotation of properly handling the relationship between the government and the market, truly giving the right of choice to the market and minimizing unnecessary administrative intervention.

Zhang Yan also said: "first of all, taking information disclosure as the core means that the registration and verification authorities will not" endorse "the issuers, which will force enterprises to disclose sufficient and necessary investment decision-making information to investors and ultimately improve the quality of listed companies. Secondly, the power and responsibility of the SFC will be clearer and the audit quality will be improved. In the end, the disclosure mechanism of capital market will be more transparent, which will further improve the efficiency of the three capital markets. ”

"The basic framework of the registration system proposed by the CSRC can be said to be a guide for the further development of the registration system in the future and the goal of further deepening the reform." Dong Dengxin, director of the Institute of Finance and securities of Wuhan University of science and technology, concluded.

With the continuous improvement of the registration system framework system, many market participants predict that the A-share market will fully open the registration system.

As early as August 24 this year, Liu He, vice premier of the State Council, made a written statement at the "gem reform and pilot registration system listing ceremony of the first batch of enterprises": promoting the gem and pilot registration system is an important decision-making and deployment made by the Party Central Committee and the State Council, and an important link in the capital market construction. 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.

At that time, some market participants predicted that if the registration system reform of the science and technology innovation board and the growth enterprise market goes smoothly, and the system arrangement has gone through the test of a complete market cycle and regulatory closed-loop, A-share full registration system may be launched in the next two years.

Wang Jiyue, a senior investment banker, told reporters: "if the registration system of gem in the future runs smoothly, 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."

Dong Dengxin also pointed out: "it may take two years for A-share to fully implement the registration system. Or two years is more than enough. These two years are not only the transition and improvement of the registration system, but also the process of comprehensive spread. Generally speaking, the registration system has been relatively smooth and stable from its implementation to today, which is in line with market expectations. The reform of registration system has achieved consensus from market, investors and regulators. This reform is confident that it can support the registration system to cover the whole market in two years. "

Conjecture registration system in full swing

In the face of the coming A-share full registration system, market participants have also launched many conjectures about the future "main board, small and medium board registration system".

The 21st century economic report reporter learned that in the view of industry insiders, the future registration system of the main board (small and medium-sized board) will fully consider the characteristics of the board, its positioning will be staggered with the science and technology innovation board and the gem, and the listing standards will be more diversified.

Wang Jiyue, a senior investment bank personage, pointed out: "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 be significantly different from the science and technology innovation board and the gem in terms of basic trading system, delisting system, credit system, and even auditing In terms of positioning, there will be differences. For companies that do not meet the positioning of gem and sci tech innovation board, they can also be listed in the form of registration system, such as many traditional enterprises. "

"A common feature of the registration system in different sectors is the diversification of IPO standards. At present, the main board and small and medium-sized board is a set of IPO standards, and there is only one channel. However, after the implementation of the registration system, the main board and the small and medium-sized board will also set multi-channel IPO standards like the gem and the science and technology innovation board. For example, net profit, valuation, net assets, revenue, operating assets and so on are used as evaluation indicators to design different channel rules. Of course, these indicators can also be crossed. For example, the value of main indicators should be set higher, and the value of supporting indicators should be set lower. " Dong Dengxin said.

In Dong Dengxin's view, "the design of IPO standards for the main board and SME Board will be completely different from that of gem and sci tech innovation board. For example, the main board and the small and medium-sized board will not allow loss making enterprises to be listed at present. The listing of loss making enterprises can only be carried out in high-tech new economy companies. High tech new economy companies will be more suitable for listing on the science and technology innovation board and the growth enterprise market. If they go to the main board and the small and medium-sized board, they will be treated the same as traditional enterprises. They are required to have a certain volume, scale and profitability. "

"In terms of delisting system, I believe that the main board and small and medium-sized board will fully absorb the new delisting system of gem and sci-tech innovation board. That is, the "three abolishments" reform: abolishing the suspension of listing, abolishing the resumption of listing, and abolishing the re listing. This will be a major delisting system reform to be implemented in the main board and small and medium-sized boards. " Mr Tung added.

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