The Sci-tech Innovation Board will open to the end of its "two years old": promote key system innovation, and list 302 companies
From scratch, institutional innovation has never stopped. Listed companies have grown from 0 to 302, and the sci-tech innovation board, which is about to open for the second anniversary of the market, has achieved fruitful results.
"In the past two years, the Science and Technology Innovation Board is actually a milestone event for China's capital market, and it has been very active and effective in overall operations." Yan Hong, deputy dean of the Shanghai Advanced Institute of Finance and professor of finance, told China Business News In the past two years, a number of scientific and technological innovation companies with investment value have been listed on the Sci-tech Innovation Board, which has added wings to the development of these companies. Of course, in the development process, it is also necessary to continuously summarize experience and improve the information disclosure system and requirements of the Sci-tech Innovation Board. And disciplinary measures for companies that violate laws and regulations, make the operation of the entire capital market more healthy and effective.
As of July 1, 2021, there have been a total of 302 listed companies on the Science and Technology Innovation Board, with a total share capital of 98.265 billion shares and a total market value of 4.73 trillion yuan.
Dong Dengxin, director of the Institute of Financial Securities, Wuhan University of Science and Technology, believes that there is huge room for the development of the Sci-tech Innovation Board. The prospects mainly depend on two factors. One is external factors, that is, whether sufficient listing resources can be maintained for the selection of the Sci-Tech Innovation Board. ; The second is the improvement of the sci-tech innovation board’s own system. It is recommended to abolish the new method of market value allotment, and at the same time refine some trading rules, and carry out pilot reforms in terms of inclusiveness and marketization, such as the implementation of "T+0" revolving transactions. Limits on the rise and fall of individual stocks, etc.
Two Anniversary Transcript
On July 22, 2019, with the listing of the first 25 companies, the Science and Technology Innovation Board officially debuted in the A-share market.
So far, the Science and Technology Innovation Board has played its role as a “test field” for institutional reform in the A-share market to help science and technology companies break through key technologies.
"The sci-tech innovation board pilot registration system has been very successful and has created many'firsts' in the A-share market. For example, the first time the IPO profit index was diluted, the IPO price-earnings ratio ceiling was not set, the price-earnings ratio limit for the first five trading days was cancelled, It is the first to try the reform of the new delisting system. As the first real science and technology enterprise sector in the A-share market, the science and technology innovation board is also relatively high." Dong Dengxin said.
Yan Hong also said that the highlights of the science and technology innovation board are mainly reflected in two aspects. One is to provide a channel for sci-tech innovation companies to go public, break the original listing requirements, and be more conducive to using the power of the capital market to support sci-tech innovation companies. Development; the second is to create a registration system, which has a symbolic effect on the development of the entire capital market, because the registration system emphasizes the function of market pricing, but also emphasizes the importance and seriousness of information disclosure.
The diversified and inclusive listing conditions of the Science and Technology Innovation Board have adapted to the differentiated financing needs of different types and development stages of science and technology enterprises.
From the perspective of the issuance link, the issuance pricing is more market-oriented, and there are no restrictions on the issuance price and scale of new shares, and it is determined by market supply and demand.
At the same time, the Science and Technology Innovation Board has carried out targeted innovation and exploration in the continuous supervision of listed companies, refinancing, mergers and acquisitions, equity incentives, share reduction, and information disclosure, and continued to optimize and improve.
The "hard technology" positioning of the Sci-tech Innovation Board has also been further clarified.
In April this year, the Sci-tech Innovation Board's science and innovation attribute evaluation system was revised to further clarify the position of the Sci-tech Innovation Board and highlight the "hard technology" characteristics.
The revised sci-tech innovation attribute evaluation indicators add more than 10% of R&D personnel; at the same time, establish a negative list system to clearly restrict the issuance and listing of financial technology and model innovation companies on the sci-tech innovation board, and prohibit real estate and mainly engage in financial and investment businesses Of companies are listed on the Science and Technology Innovation Board.
As of July 1, the Science and Technology Innovation Board has accumulated 302 listed companies, with a total equity of 98.265 billion shares, a total market value of 4.73 trillion yuan, and a total circulating market value of 1.57 trillion yuan.
Among them, the number of science and technology listed companies in the three major industries of new-generation information technology, biomedicine, and high-end equipment accounted for about 75%, which initially formed an industrial cluster.
Companies listed on the Science and Technology Innovation Board have also handed in better transcripts.
In the first quarter of this year, the sci-tech innovation board listed companies achieved a total operating income of 98.155 billion yuan, a year-on-year increase of 70.88%; realized a net profit of 11.99 billion yuan, a year-on-year increase of 216.40%.
At the same time, the R&D investment of sci-tech innovation board companies continued to remain high. The total R&D investment in the first quarter was 8.434 billion yuan, accounting for an average of 18.90% of operating income.
With the deepening of reforms, there have been some changes in the investor structure and market-based pricing of the Science and Technology Innovation Board.
According to China Business News, from the perspective of investor structure, the proportion of institutional investors' transactions is gradually increasing.
In the first quarter of 2021, institutional investors accounted for 25% of the total sci-tech innovation board market transactions, and professional institutional investors such as public funds and other professional institutional investors held nearly 40% of the market value of sci-tech innovation board companies. Foreign institutional investors passed through Shanghai and Hong Kong. Well-known index institutions abroad also participate extensively in the investment in the sci-tech innovation board market.
The chairman of the China Securities Regulatory Commission, Yi Huiman, said at the 13th Lujiazui Forum a few days ago that the main indicators of the Sci-tech Innovation Board have been operating steadily over the past two years, and the level of market liquidity has basically adapted to its sector positioning, investor suitability, and trading system arrangements.
From the perspective of turnover rate, in the first five months of this year, the overall daily turnover rate of the Sci-tech Innovation Board was 2.56%, which was higher than that of the main board and the GEM during the same period.
From the perspective of pricing efficiency, the Science and Technology Innovation Board has relaxed the price limit, optimized the margin financing and securities lending arrangements, and the market game has become more complete, which is conducive to speeding up the formation of equilibrium prices.
At the same time, the "new speculation phenomenon" has decreased significantly.
After being listed on the Science and Technology Innovation Board, companies have initially withstood market tests in terms of corporate governance and continuous information disclosure.
Perfect space in the future
At present, the Sci-tech Innovation Board is functioning as expected by the market, giving full play to the function of the “experimental field” of institutional reform, continuing to promote key institutional innovation, and accelerating the formation and effective circulation of innovative capital.
So, what room is there for further improvement in the future?
Dong Dengxin said that the sci-tech innovation board pilot registration system is a revolution in the A-share market, bringing a series of institutional innovations and changes in the entire market ecology to the A-share market.
At the same time, the Science and Technology Innovation Board has important significance and influence on Shanghai's construction of an international financial center and a science and technology innovation center.
Yan Hong said that the launch of the Science and Technology Innovation Board on the Shanghai Stock Exchange has played a very important role in promoting Shanghai's construction of an international financial center and a science and technology innovation center. Because the registration system itself is an operating mechanism prevailing in the international capital market, the perfection of the registration system, In fact, it also enables the Chinese capital market to better connect with the international capital market system, and it is also more conducive to the introduction of international investors, and continuously promotes the construction and deepening of Shanghai's international financial center. At the same time, it can also promote more science and technology enterprises to seek capital. Market financing.
"The establishment of the Science and Technology Innovation Board on the Shanghai Stock Exchange has a very important breakthrough and landmark significance for Shanghai's construction of an international financial center and a science and technology innovation center. The Science and Technology Innovation Board is an exclusive market for high-tech companies in the true sense, and it is also connected with the registration system. This, to a certain extent, has enhanced the market's technological content, status and influence of the Shanghai Stock Exchange." Dong Dengxin said.
The Shanghai Stock Exchange (hereinafter referred to as the "Shanghai Stock Exchange") stated in the "Shanghai Stock Exchange 2020 Social Responsibility Report" released on June 4 that thanks to the help of capital, many companies continue to increase Large investment in research and development, continuous intensive research and development, and major breakthroughs in key technologies.
In the future, the Sci-tech Innovation Board will aim to enhance the independent controllability of the industrial supply chain, continuously inject capital kinetic energy into science and technology enterprises, and promote the vigorous development of technological innovation.
Regarding the institutional reform of the Science and Technology Innovation Board, in the past two years of operation, relevant institutional reforms have been tested.
Of course, with the continuous deepening of reforms, there is room for perfection in the system construction of the Sci-tech Innovation Board.
"The marketization of the Science and Technology Innovation Board needs to be further improved. It is recommended to take the lead in canceling the market value allotment rules for subscription of new shares, and truly realize that investors on and off the market can actually pay for new shares to subscribe for new shares. This can better reflect market-based pricing principles and be more conducive to IPO pricing. Marketization.” Dong Dengxin said.
He also suggested that the Science and Technology Innovation Board can refine some trading rules and carry out pilot reforms in terms of inclusiveness and marketization, such as the implementation of "T+0" revolving transactions, and the removal of individual stocks' price limits.
In Yan Hong’s view, for the science and technology innovation board, it is necessary to summarize experience and lessons, deepen reform measures, and strengthen information disclosure requirements, so that the science and technology innovation board can rely more on the role of the market in the approval process of listed companies and strengthen Supervision efforts to punish violations have enabled the market to develop in a more orderly manner.
"The reform of the registration system needs to be continuously improved and deepened. It should be said that there is only a time when it is going on, and there is no time when it ends." At the 13th Lujiazui Forum held on June 10, Liu Shaotong, deputy general manager of the Shanghai Stock Exchange, said that the Shanghai Stock Exchange will continue to deepen science and technology innovation. The registration system reform of the board adheres to the position of hard technology, improves the review mechanism, and consolidates the responsibilities of issuers and intermediaries.
(Author: Huang Siyu)