The Threshold For Individual Investors Is RMB 500000, And The Beijing Stock Exchange Starts To Open An Account By Appointment

On the eve of the opening of the market, the Beijing stock exchange (hereinafter referred to as the Beijing stock exchange) has finalized the entry threshold for individual investors.

On September 17, in order to guide investors to rationally participate in the securities trading of the stock exchange and protect the legitimate rights and interests of investors, the Beijing stock exchange issued the measures for the administration of the appropriateness of investors of Beijing stock exchange (for Trial Implementation) (hereinafter referred to as the administrative measures). Among them, the "administrative measures" clearly defines the access threshold for individual investors to participate in the transactions of the Beijing stock exchange: "the assets in the securities account and capital account in 20 trading days are no less than RMB 500000", while the access of institutional investors does not set capital threshold.

Wang Junguo, chairman of the guide fund, said that compared with the select layer, the Beijing stock exchange should appropriately lower the threshold for individual investors, which is conducive to further improvement of trading liquidity and more investment options for qualified investors. However, the main body of Listed Companies in Beijing stock exchange is innovative small and medium-sized enterprises, whose operating performance and share price fluctuate greatly. Therefore, the regulatory authorities need to guide securities companies to give full play to the risk of investment.

It is reported that the "administrative measures" have been approved by the CSRC and will take effect from the date of promulgation. The implementation time will be further notified. From the date of the announcement, qualified investors can apply to the securities companies entrusted by them to open up the trading authority of the Beijing stock exchange.

According to the current institutional arrangements, all listed companies on the new third board will be listed on the Beijing stock exchange in the future- Visual China

The entry threshold of investors has been adjusted again

On September 2, the Beijing stock exchange was born.

According to the current institutional arrangements, all listed companies on the new third board will be listed on the Beijing stock exchange in the future. The follow-up listed companies on the Beijing stock exchange will be generated from qualified innovative listed companies.

According to the new third board investor suitability rules previously issued, individual investors should meet the hard conditions of "10 trading days before the opening of application authority, the daily average assets in the securities account and capital account under my name is more than 1 million yuan". In view of the translational relationship between the Beijing stock exchange and the selected layer, the release of the "management measures" also means that the entry threshold of investors is reduced.

Specifically, it is specified in the administrative measures that if an individual investor participates in the stock trading of the Beijing stock exchange, the assets in the securities account and the capital account shall be no less than RMB 500000 per day 20 trading days before the opening of the application authority, excluding the funds and securities that the investor integrates through margin trading. In addition, individual traders should also participate in securities trading for more than 24 months.

The "administrative measures" specifically states that if the shareholders of the listed companies of Beijing stock exchange before listing and the shareholders holding the company's shares through equity incentive do not meet the requirements for investor access stipulated in the measures, they can only buy and sell the shares of listed companies held or held by them.

However, it should be noted that after the "administrative measures" and before the opening of the Beijing stock exchange, investors still need to meet the security asset standard of RMB 1 million to participate in the trading of selected stocks.

The relevant person in charge of the Beijing stock exchange said that the investor threshold was reduced from 1 million to 500 thousand, on the one hand, the risk was compared horizontally. The companies that will be listed on the Beijing stock exchange are specialized and innovative small and medium-sized enterprises. Although they have the risks of big fluctuations in performance and unstable performance, the risk of horizontal comparison of financial derivatives trading, futures options and other transactions is objectively relatively low, so we can appropriately reduce the threshold for investors.

In addition, lowering the investor threshold can also increase plate liquidity. At present, there are 1.75 million investors in the selected layer of the new third board meeting the threshold of 1 million. Lowering the threshold can allow more investors to participate in the stock trading of Beijing stock exchange, open up a wider financing channel for listed enterprises, increase liquidity and increase premium, and investors can also make better investment.

It is worth mentioning that on the day of the promulgation of the administrative measures, the national stock transfer company also revised the measures for the management of investor suitability in the national share transfer system for small and medium-sized enterprises.

Investors' participation in innovative stock trading is clearly divided into the following three categories: legal entities with paid in capital or total paid in capital of more than 1 million yuan; A partnership enterprise with a total paid in capital contribution of more than 1 million yuan; A natural person investor whose average daily assets in the securities account and capital account under his name is more than 1 million yuan (excluding the funds and securities integrated by the investor through margin trading) 10 trading days before the opening of application authority, and has the investment experience, working experience or working experience specified in Article 6 of these measures. The relevant capital access threshold has been lowered by 500000 yuan compared with the past.

According to the current rules and arrangements, in the future, the scope of trading authority of investors who have opened the trading authority of selective layer will be automatically extended to innovative stocks, without the need for investors to apply separately. After the opening of the Beijing stock exchange, the trading authority of investors with the new third board trading authority will include the shares of Beijing stock exchange.

Expected to increase the number of investors and improve transaction liquidity

As early as the end of 2019, the national equity to equity company issued the revised "investor suitability management measures", which has revised the investor suitability threshold of the new third board. After the amendment, investors' participation in the issuance and trading of selected stocks should meet the hard conditions of "the average daily assets in the securities account and capital account under my name is more than 1 million yuan 10 trading days before the opening of application authority", while the investment innovation layer and basic layer need to meet the threshold of RMB 1.5 million and 2 million respectively. This is significantly lower than the previously unified threshold of 5 million yuan.

The revised measures also adjust the asset standard of individual investors from financial assets to securities assets. At the same time, the new method optimizes the continuous management of investor suitability, and requires the sponsor securities companies to timely update the evaluation database and actively adjust the investors' suitability matching opinions based on the information of investors and their participation in the stock trading of listed companies.

According to the relevant person in charge of the national stock transfer company, as of the end of August 2021, the scale of investors in the new third board market has reached seven times that before the reform, which has stimulated the market vitality and promoted the trend structural change of the market.

Before that, Liu Ping'an, President of jinchangchuan capital, had judged that the threshold for investors would be lowered. "Now there are more than 7300 listed companies in the new third board, with an account opening scale of about 1.7 million, which is far from enough. The possibility of reducing the first step to 500000 is greater. If the scale of investors is not enough, it is impossible to meet the financing needs of enterprises."

According to the statistics of Anxin securities, by the end of 2020, the number of individual investors in the new third board was 1.658 million. The entry threshold of the Beijing stock exchange is consistent with that of the science and Technology Innovation Board of Shanghai Stock Exchange. According to the data of the investor position structure of Shanghai Stock Exchange at the end of 2020, there are 3.32 million investors with market value above 500000.

Zhu Haibin, chief analyst of Anxin securities new third board, said that considering the market value of Shenzhen Stock Exchange and other financial assets reflected by investors in banks, the number of investment accounts meeting this standard will be more. As a matter of fact, as of July 2021, the cumulative number of accounts opened on the science and technology innovation board, which also has a threshold of 500000, has reached 7.89 million.

"In view of the new positioning and attraction of the Beijing stock exchange, we expect that the number of investors in the future will be more than 3.32 million. It is estimated that the number of investors will be between 3.32 million and 7.89 million, which will be several times higher than the current situation. The number of investors and the market scale will increase, and the liquidity is expected to be greatly improved." It is said by the seashore.

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