Stimulate the vitality of the capital market in reform and innovation
——Written on the occasion of the opening of the GEM registration system (below)
Economic Daily·China Economic Net reporter Wen Jicong Yang Yangteng
A few days ago, Kaipu Biotechnology issued an announcement stating that the company's application for issuing shares to specific targets was approved by the China Securities Regulatory Commission. This marked the effective registration of the first batch of GEM companies reforming and piloting the registration system. The Growth Enterprise Market is the first step in the reform of the registration system of the stock sector. It has a leading effect on the subsequent registration system reform of the main board and the small and medium-sized board, and explores paths and accumulates experience for the next step of the market-wide registration system reform. It has a pioneering demonstration significance.
Parallel stock incremental reform
For the first time, the reform of the ChiNext and the pilot registration system will simultaneously advance the increase and the reform of the stock market. It is a key step for the entire market to implement the registration system reform. This reform will not only further release market vitality, enhance the ability to serve innovation and entrepreneurship, but also maintain the stable development of the stock market, and explore the path for the next market-wide registration system reform.
One is to improve the positioning of the ChiNext. Since its launch in October 2009, the Growth Enterprise Market has adhered to its positioning of service innovation and entrepreneurship, with overall stable operation and steady market development. National high-tech enterprises on the Growth Enterprise Market accounted for over 90%, and strategic emerging industry companies accounted for over 70%. In the past 10 years, ChiNext has always actively implemented the innovation-driven development strategy and has become a gathering place for innovative and entrepreneurial enterprises.
This reform further improves the positioning of the ChiNext. The Growth Enterprise Market thoroughly implements the innovation-driven development strategy, adapts to the general trend of innovation, creation and creativity, and adheres to the overall positioning of serving innovation and entrepreneurship. In terms of the scope of services, the Growth Enterprise Market not only supports the development of strategic emerging industries and high-tech industries, but also supports the deep integration of traditional industries with new technologies, new industries, new models, and new business formats.
The second is to coordinate the construction of the pilot registration system and basic system. This reform adheres to information disclosure as the core, and simultaneously implements the registration system for IPOs, refinancing, mergers and acquisitions and reorganizations, and uses this as the main line to coordinate reforms and improve listing, information disclosure, investor suitability management, transactions, and delisting. Basic system of capital market.
Chen Li, chief economist of Chuancai Securities, said that these reform measures indicate that my country's capital market registration system reform is shifting from an incremental market to a stock market. Both incremental and stock reforms will be emphasized and will further improve the positioning of the ChiNext.
Serving the development of the real economy
In recent years, GEM listed companies have actively leveraged capital market platforms to build industry, capital and talent advantages through mergers and acquisitions, refinancing, and equity incentive capital tools to achieve excellence and strength. Among them, mergers and acquisitions and reorganization are the main ways for listed companies to carry out extensional expansion, industrial integration, and transformation and upgrading. Refinancing is an important means for listed companies to enrich their capital strength and clear capital bottlenecks. Equity incentives are an important benefit sharing mechanism for listed companies to achieve innovation. The deep binding of talents and companies, these three capital tools are of great significance to promote the high-quality development of listed companies.
Accelerate industrial integration and upgrading, and optimize the institutional arrangements for mergers and acquisitions. The Growth Enterprise Market has always supported listed companies to achieve industrial integration and transformation and upgrading through mergers and acquisitions, providing important assistance for the adjustment of national industrial structure and improving the quality and efficiency of the real economy, and strongly supporting the development of the real economy. This reform has revised and improved the GEM restructuring system, further stimulated the vitality of mergers and acquisitions and reorganization, and accelerated industrial integration and upgrading.
Improve the marketization mechanism and upgrade the refinancing system again. In February of this year, the China Securities Regulatory Commission revised the ChiNext refinancing measures, streamlined issuance conditions, and expanded the coverage of ChiNext refinancing services, effectively stimulating market financing functions. While advancing the refinancing registration system, this reform has further improved the issuance conditions, issuance pricing mechanism and other institutional arrangements, which can better meet the needs of market development.
Stimulate the enthusiasm for innovation and entrepreneurship and make up for the shortcomings of the equity incentive system. Equity incentives are an important benefit-sharing mechanism for listed companies. According to statistics, the average operating income and net profit growth rates of GEM companies that implement equity incentives in 2019 are 23% and 32%, respectively, which are better than companies that have not implemented equity incentives. The reform of the equity incentive system further enhances the flexibility of the system, stimulates the inherent growth potential of listed companies, and solves more restrictive issues such as incentive ratios, incentive targets, award prices and implementation procedures.
Improve the issuance pricing mechanism
Price inquiry pricing is a key link in the initial public offering of securities. Whether the pricing is reasonable not only affects the vital interests of issuers, investors and underwriters, but also directly affects the efficiency of resource allocation in the securities market.
Throughout the world’s major securities markets, some mature markets mainly adopt a mixed pricing model with a cumulative bidding inquiry mechanism as the mainstay and a fixed price mechanism as a supplement. Different markets have their own strategic allocation and over-allotment options based on their own characteristics. It is unique, but generally follows the basic principle of "market-based pricing", and realizes price discovery through full game between buyers and sellers.
The GEM reform summed up the previous reform experience of China’s new share issuance system since 2005 and the practices of mature overseas markets, and fully learned from the pioneering experience of the science and technology innovation board, established an inquiry pricing mechanism with professional institutional investors as the main participants, and combined stock The characteristics of the reform have established a differentiated pricing system for new stock issuance. Compared with the incremental reform of the Science and Technology Innovation Board, the GEM IPO system has the following differences: one is to retain the direct pricing method to reduce the issuance cost of small and medium-sized enterprises; the other is to appropriately increase the ratio of offline to online callbacks to ensure online The number of investors allocated; the third is to increase the priority allocation ratio to public offerings, social security, pensions, corporate annuities and insurance funds, and to pay attention to the quotation of medium and long-term funds; the fourth is to reduce the scope of mandatory follow-up investment by sponsors.
The registration system reform of the Growth Enterprise Market takes into account incremental and stock reforms, and forms a differentiated pattern with different emphasis from the pure incremental reform of the Science and Technology Innovation Board. Based on the reform of the market-oriented issuance and underwriting mechanism, the characteristics of the sector are further highlighted, and the market’s resources The decisive role in the allocation is to accumulate experience for the full implementation of the registration system for the stock sector.
Wen Jicong Yang Yangteng