In his speech at the 2021 China International Trade Fair in Services Global Service Trade Summit, President Xi Jinping announced that he will continue to support the innovative development of small and medium-sized enterprises, deepen the reform of the New Third Board, establish the Beijing Stock Exchange, and build a main position for service-innovative small and medium-sized enterprises.
What does the establishment of the Beijing Stock Exchange (hereinafter referred to as the "Beijing Stock Exchange") mean for the development of the capital market?
How will it contribute to the innovation and development of SMEs?
At the press conference of the China Securities Regulatory Commission held on September 3, the relevant person in charge gave a detailed explanation.
Activate the agglomeration effect of "technology + capital"
Small and medium-sized enterprises play an important role in promoting economic growth, promoting technological innovation, and increasing employment.
The capital market has always regarded serving the innovation and development of SMEs as an important mission. In recent years, through continuous deepening of reforms and improvement of policies and systems, the quality and effectiveness of serving the development of SMEs have been continuously improved.
The NEEQ is an important exploration for the capital market to serve small and medium-sized enterprises. Since its official operation in 2013, it has vigorously streamlined administration and delegated power, continued reform and innovation, and continuously explored internal hierarchical management. In 2016, it was initially divided into innovation layer and basic layer. Layer selection, while introducing transfer listing, public issuance, and continuous bidding transactions, gradually forming basic systems such as differentiated issuance and transactions that are compatible with the conditions of different levels of enterprises, and establishing the "basic, innovative, and selected" layers The progressive market structure can provide full-caliber services for SMEs at different stages and types.
Among them, the selection layer has initially possessed the open market function of serving small and medium-sized enterprises after a year of practice.
Zhou Guihua, Director of the Public Company Department of the China Securities Regulatory Commission, stated that the China Securities Regulatory Commission established the Beijing Stock Exchange on the basis of the selected layers of the New Third Board, aiming to promote the improvement of a multi-level capital market system with Chinese characteristics and build an exchange tailored for innovative small and medium-sized enterprises. , To explore the path of inclusive finance that supports the technological innovation of small and medium-sized enterprises in the New Third Board.
"The first is to build a professional platform for the innovation and development of small and medium-sized enterprises. Focusing on the development needs of'specialized, special and innovative' small and medium-sized enterprises, consolidate market service functions, improve the policy support system, and form a gathering effect of technology, innovation and capital, and gradually develop into a service The main position of innovative small and medium-sized enterprises. The second is to explore and improve the institutional arrangements that suit the characteristics of small and medium-sized enterprises. Through the pilot registration system, explore the registration system arrangements suitable for small and medium-sized enterprises; through the implementation of the company system, explore the innovation of the exchange organization and management mode; Through the implementation of the transfer system, the interconnection between multi-level capital markets will be strengthened. The third is to form a market service system that supports the continuous growth of small and medium-sized enterprises." Zhou Guihua introduced.
Establish institutional arrangements suitable for innovative enterprises
Through continuous reform and innovation, the New Third Board has formed three market levels of "basic level, innovation level, and selected level", which are in line with the market needs of different types of small and medium-sized enterprises at different development stages.
It is understood that since the opening of the market on July 27, 2020, various market-oriented institutional arrangements such as public offerings and continuous bidding have initially withstood the market test for the selection layer. The financing and transaction functions have been effectively used, and the pricing and transaction efficiency has been significantly improved. , Attracting a group of “small and beautiful” high-quality SMEs with an average price-earnings ratio of more than 33 times and an average market value of more than 2.5 billion yuan. The market has performed well, and it has the institutional foundation, corporate foundation and market foundation for the establishment of the Beijing Stock Exchange. .
"In this reform, through the establishment of the Beijing Stock Exchange, the overall undertaking of the selection layer, all existing listed companies on the selection layer will be converted into listed companies on the Beijing Stock Exchange, and the newly-added listed companies will be created by qualified innovative tier listed companies." The relevant person in charge of the China Securities Regulatory Commission stated that these arrangements not only meet the actual needs of SMEs, but also meet the reality of my country's multi-level capital market construction.
According to Yang Zhe, deputy director of the Public Company Department of the China Securities Regulatory Commission, in accordance with the principle of “sticking to one position, handling two relationships, and achieving three goals”, the Beijing Stock Exchange will shift the basic systems of the selection layer as a whole to explore and establish suitable innovations. The issuance and listing system and information disclosure system arrangements that are characteristic of small and medium-sized SMEs.
First, in terms of financing access, highlight the operating characteristics of innovative small and medium-sized enterprises, adhere to the focus on information disclosure, start from the actual situation of small and medium-sized enterprises, and strengthen the pertinence, accuracy and inclusiveness of the system.
Second, in terms of the trading system, adhere to the more flexible trading system of the selected layer, and implement continuous auction trading. There is no limit on the rise and fall of new stocks on the first day of listing, and the limit on the rise and fall is 30% from the next day to increase market flexibility.
Third, in terms of continuous supervision, strictly follow the legal framework for the supervision of listed companies, and form differentiated institutional arrangements in terms of corporate governance, information disclosure, equity incentives, and share reductions.
Fourth, in terms of exit arrangements, maintain the market ecology of "in and out" and "in and out", and build a diversified delisting indicator system.
Fifth, in terms of market connection, strengthen the organic connection of multi-level capital markets and enrich the growth path of enterprises.
Realize the misplaced development with the Shanghai and Shenzhen Stock Exchanges
Regarding how the Beijing Stock Exchange has achieved a misaligned development with the Shanghai and Shenzhen Stock Exchanges, the relevant person in charge of the China Securities Regulatory Commission stated that in terms of market functions, the Beijing Stock Exchange focuses on innovative small and medium-sized enterprises, and serves "earlier, smaller, and newer" targets; In terms of institutional arrangements, the Beijing Stock Exchange is focusing on building a basic system that fits the characteristics of small and medium-sized enterprises, and insists that listed companies emerge from qualified innovation-level enterprises.
At the same time, the Beijing Stock Exchange adheres to the transfer mechanism to the Shanghai and Shenzhen Stock Exchanges and strengthens the interconnection of multi-level capital markets.
In terms of market operation, the Beijing Stock Exchange insists on focusing on qualified investors. The investor structure and risk appetite are quite different from those of Shanghai and Shenzhen transactions. They match the risk characteristics of innovative small and medium-sized enterprises and will form long-term investment and rationality. The investment culture of investment is expected to operate relatively smoothly in the overall market.
"Cultivate and grow companies at the innovative and basic levels of the New Third Board, encourage continued listing on the Beijing Stock Exchange, and at the same time adhere to the transfer mechanism, and cultivate mature companies listed on the Beijing Stock Exchange to continue their development on the Shanghai and Shenzhen Stock Exchanges." The person in charge pointed out.
On September 3, the China Securities Regulatory Commission publicly solicited opinions from the public on the relevant basic institutional arrangements of the Beijing Stock Exchange. The specific contents include: building an inclusive and accurate system for issuance and listing; implementing a flexible and diversified continuous financing system; establishing a lenient and appropriate continuous financing system Regulatory system; clarify the regulatory arrangements for corporate exchanges, etc.
The China Securities Regulatory Commission stated that it will further revise and improve relevant regulations based on the public comments, and publish them for implementation as soon as possible after fulfilling the legal procedures.
(Reporter Wen Yuan)