The Deepening Reform Path Of Capital Market Is Clear

Two days after the meeting of the financial committee proposed "comprehensively implementing the registration system of stock issuance and establishing a normalized delisting mechanism", on November 2, the 16th meeting of the Central Committee for comprehensive deepening reform deliberated and approved the implementation plan for improving the delisting mechanism of listed companies and several opinions on cracking down on securities illegal activities in accordance with the law.

After the top-level design of the 14th five year plan has been set, the next stage of capital market reform roadmap has become clearer.

On October 31, the financial stability and Development Commission of the State Council (hereinafter referred to as the financial commission) held a special meeting to convey and study the spirit of the Fifth Plenary Session of the 19th CPC Central Committee and study and deploy the implementation of the financial system.

With regard to the construction of capital market, the financial committee proposed at this meeting that it is necessary to strengthen the hub function of the capital market, comprehensively implement the stock issuance registration system, establish a normalized delisting mechanism, and increase the proportion of direct financing. We will promote the two-way opening up of finance. We will resolutely rectify all kinds of financial chaos and "zero tolerance" for all kinds of illegal activities. Actively and steadily prevent and resolve financial risks, resolutely maintain financial stability, and firmly hold the bottom line of no systemic financial risks.

Further discussion on "implementing the registration system of stock issuance in an all-round way"

On October 15, this year, when entrusted by the State Council, Yi Huiman, chairman of the China Securities Regulatory Commission, 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, he said that "through the pilot of the two sectors of the science and technology innovation board and the growth enterprise market, the conditions for the implementation of the registration system in the whole market are gradually met.".

"The CSRC will conscientiously implement the decisions and arrangements 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 experience of the pilot projects, study new situations and solve new problems in a timely manner, and select the appropriate time to comprehensively promote the reform of the registration system." Full will express.

On October 31, the meeting of the financial committee once again formulated the regulation for the full implementation of stock issuance registration.

"The pilot of registration system reform should be said to be very smooth. From last year's science and technology innovation board to this year's gem, the registration system reform pilot was smoothly implemented, and its operation was in line with market expectations. Investors and regulatory authorities have highly recognized it, marking the end of the pilot phase of registration system reform." Dong Dengxin, director of the Institute of Finance and securities of Wuhan University of science and technology, said that the registration system will soon enter a stage of comprehensive promotion, popularization and coverage. With the pilot experience of the registration system of the science and technology innovation board and the growth enterprise market, the full implementation of the registration system for stock issuance will be promoted faster and more smoothly.

"In view of the current pilot situation of the registration system, it was expected that the full implementation of the registration system will be promoted next year, and the latest will be the next year." Senior people in Beijing said.

It is worth mentioning that the regulatory authorities intend to merge the main board of Shenzhen stock exchange with the small and medium-sized board, and restart the IPO of the main board market of Shenzhen Stock Exchange.

"There is no institutional barrier to the merger of the main board and the small and medium-sized board of Shenzhen Stock Exchange. In recent years, the regulatory requirements and corresponding rules and regulations of the two sectors are also unified." The above senior investment banks predict that the full implementation of the registration system in the future will be carried out simultaneously with the merger of Shenzhen main board and small and medium-sized board. "At present, there is no stock of queuing enterprises in Shenzhen stock market. We only need to move the queuing enterprises on the small and medium-sized board as they did during the registration system reform of the gem."

What is the difference between the registration system after the full implementation and the registration system carried by the science and technology innovation board and the gem. Dong Dengxin believes that the implementation of the registration system on the main board and the small and medium-sized board may be much simpler than that on the science and technology innovation board and the gem.

Dong Dengxin pointed out that the registration system of the science and technology innovation board and the growth enterprise market is specially tailored for science and technology innovation enterprises. It mainly sets a multi-channel inclusive standard on the IPO standard for the new business forms and modes of science and technology innovation enterprises. As for the main board and the small and medium-sized board, the listed companies are mainly traditional industries or mature enterprises. The IPO standards will be more simplified, focusing on the performance stability, scale and volume, which are the most important and basic assessment points for traditional enterprises. Allowing unprofitable high-tech enterprises to go public should still be the exclusive dividend of the science and technology innovation board and the gem.

"Establishing a normalized delisting mechanism" to a new height

In addition to the full implementation of the stock issuance registration system, the meeting of the financial commission on October 31 also proposed to strengthen the hub function of the capital market, establish a normalized delisting mechanism, and increase the proportion of direct financing.

Coincidentally, on October 30, at the expanded learning meeting of the Party committee and the theoretical center group of the Party committee held by the China Securities Regulatory Commission, Yi Huiman, chairman of the CSRC, also said in his speech that we should take the reform of the registration system and delisting system as the starting point, promote the key system innovation in the aspects of issuance and underwriting, trading, continuous supervision and investor protection, and comprehensively strengthen the construction of the basic system of the capital market.

It can be seen that both the financial commission and the Securities Regulatory Commission have put the reform of delisting system in the same position as the reform of registration system. Both of them will become the key to the construction of capital market reform system under the "14th five year plan".

On November 2, the 16th meeting of the Central Committee for comprehensive deepening reform deliberated and approved the implementation plan for improving the delisting mechanism of listed companies and several opinions on strictly cracking down on securities illegal activities according to law.

The meeting pointed out that improving the delisting mechanism of listed companies and cracking down on illegal securities activities in accordance with the law are important institutional arrangements for comprehensively deepening the reform of the capital market. We should adhere to the direction of marketization and legalization, improve delisting standards, simplify delisting procedures, broaden multiple exit channels, strictly supervise delisting, and improve the normalized exit mechanism. We should speed up the improvement of the judicial system and mechanism of securities law enforcement, increase the investigation and punishment of major illegal cases, consolidate the foundation of the rule of law and integrity in the capital market, strengthen the cooperation in cross-border supervision and law enforcement, and promote the construction of a good market order.

"Further market-oriented reform of the capital market lies in more effective pricing of assets, and the core lies in the two-way marketization of" import "and" export. " A chief analyst of a securities firm said that the delisting system was promoted to the same height as the registration system, considering that the number of listed companies has reached nearly 4000.

Dong Dengxin also said that the delisting system and the IPO system are corresponding. Since the stock issuance system has been changed from the approval system to the registration system, the delisting system should also be in line with the delisting system of the science and technology innovation board and the gem.

In recent years, the regulatory authorities, including the CSRC, have been trying to improve the delisting system, and the delisting cases of individual stocks are also common.

Recently, Li Jizun, director of the first market department of China Securities Regulatory Commission, said in public that the current delisting efforts are unprecedented, which has promoted the survival of the fittest in the market. According to statistics, since last year, 24 listed companies have been forced to delist, which is twice the total of the previous six years.

At present, the delisting system of the science and technology innovation board and the growth enterprise market under the registration system has carried out the "three wastes" reform, that is, abolishing the suspension of listing, abolishing the resumption of listing and abolishing the re listing. In Dong Dengxin's view, the main board and the small and medium-sized board must also implement a unified delisting system.

"As long as the three wastes reform of the delisting system is implemented, the efficiency of delisting can be greatly improved, and the delisting cycle can be shortened, so that the new delisting system can be more deterrent, play a better role in the survival of the fittest, and highlight the resource allocation function of the stock market." Dong Dengxin said that once the new delisting system is fully implemented in the future, it can be imagined that junk stocks and zombie enterprises will not only have high delisting efficiency, but also significantly shorten the delisting period. Moreover, more than half of the delisted enterprises may be driven out of the market by the one yuan delisting standard through voting with their feet.

"The future delisting system reform may also need to rely on marketization, including class action, to make the exit process more smooth, fair and convenient while fully protecting the interests of investors." The chief analyst said.

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