Editor's note: 2021, the first year of the "14th Five-Year Plan", is a crucial year for the deepening of China's capital market reforms.

This year, the registration system pilot achieved important phased results, and the reform achieved the expected goals; this year, the capital market ushered in the third national stock exchange-the Beijing Stock Exchange, a "big puzzle of my country's multi-level capital market" "Further complete; this year, the IPO market has achieved a "boost in both quantity and quality". 522 companies went public successfully. The initial fundraising amounted to 542.654 billion yuan, a year-on-year increase of 12.92%; this year, individual investors in my country’s capital market made breakthroughs. With 190 million people, investor protection has reached a new level; this year, the main board of the Shenzhen Stock Exchange and the small and medium-sized board merged to form a new development pattern that complements each other between different sectors; this year, the China Securities Regulatory Commission and local securities regulatory bureaus issued a total of 321 This administrative penalty decision further reflects the gradual improvement of the basic system of my country’s capital market, the continuous upgrade of the supply of the rule of law, and the further implementation of the “zero tolerance” attitude at the operational level. In general, in 2021, the capital market Got an excellent report card.

  2021 IPO “boosts both quantity and quality”

  522 companies raised 542.6 billion yuan

  Our reporter Wu Xiaolu

  In 2021, the registration system reform has entered the "deep water zone", and the multi-level capital market system has been further improved.

The high-quality registration system of the Sci-tech Innovation Board and the Growth Enterprise Market has been operating, and the Beijing Stock Exchange has opened its doors. The number of A-share IPOs and the amount of funds raised have both hit record highs.

At the same time, the supervisory authorities strictly controlled the "entry gate", and made efforts to improve the quality of letter and release, improve the issuance and underwriting mechanism, and compact the responsibilities of intermediary agencies. The IPO market has achieved "both quality and quantity".

  According to Wind statistics, a total of 522 companies will complete IPOs in 2021 (excluding China Construction Energy and the re-listed Huilv Ecology of Gezhouba), a year-on-year increase of 20%, and the initial fundraising amounted to 542.654 billion yuan, a year-on-year increase 12.92%.

  From the perspective of the industry (Shenwan Industry 2021), the IPO funds raised in the medical biology, electronics, mechanical equipment and communications industries are relatively high, exceeding 50 billion yuan, respectively 88.912 billion yuan, 57.626 billion yuan, 53.903 billion yuan and 50.624 billion yuan. In terms of sectors, there are a total of 402 newly-listed companies on the Science and Technology Innovation Board, the ChiNext and the Beijing Stock Exchange, accounting for 77.01% of the number of newly-listed A-share companies. The proportion of funds raised was 65.96%; from the perspective of the IPO funds raised by a single company, the average initial funds raised by 522 companies was 1.04 billion yuan, a year-on-year decrease of 5.9%. Among them, 397 companies had less than 1 billion initial funds raised. , Accounting for 76.05%.

  Under the registration system, the IPO review port has moved forward, and at the same time, the “entry gate” is strictly controlled to improve the quality of listed companies from the source.

In 2021, the China Securities Regulatory Commission will revise the guidelines for the evaluation of science and technology innovation attributes of the Sci-tech Innovation Board, strengthen the verification of shareholders of prospective IPO companies, continue to conduct on-site inspections of IPO companies, improve the quality of IPO prospectuses, and urge intermediaries to improve the quality of practice and return to their due diligence.

  According to statistics on the websites of the China Securities Regulatory Commission and Shanghai and Shenzhen Stock Exchanges, in 2021, a total of 239 IPO projects that have been actively withdrawn and failed to pass the review will be issued.

Among them, 29 orders failed the review, 13 orders, 8 orders and 8 orders on the Main Board, Science and Technology Innovation Board and GEM respectively; 210 orders were voluntarily withdrawn, 34 orders, 73 orders and 103 orders for the Main Board, Science and Technology Innovation Board and GEM respectively Single (including not responding within the specified time limit).

  Issuance pricing is an important part of a company's IPO, which directly affects the issuer's value and financing scale.

In view of the fact that some offline investors focus on strategy rather than research, and for Bo’s shortlisted "group quotation" and other situations, the China Securities Regulatory Commission further optimized the underwriting system for the issuance of registered new shares. In September 2021, the new rules for issuance and underwriting will be issued to improve the new shares of the Sci-tech Innovation Board and ChiNext Issue pricing related business rules.

  After the implementation of the new regulations, the effective quotation range for IPO inquiries under the registration system has been widened, the proportion of investors shortlisted has decreased, and an increasing number of companies’ IPO prices have exceeded the “lowest of the four numbers”.

On the whole, the pricing of new shares is more reasonable, the situation of “group quotation” has improved significantly, and the degree of marketization of the pricing of new shares has increased significantly.

  In addition, in order to support the return of high-quality red-chip companies, the regulatory authorities have continued to optimize policy arrangements.

In September 2021, the China Securities Regulatory Commission expanded the scope of pilot programs for red chip companies to list domestically, expanding the scope of pilot industries from the original 7 to 14.

At the same time, red-chip companies with national strategic significance apply to be included in the pilot program and are not subject to industry restrictions.

  For example, in August 2021, the Securities Regulatory Commission accepted the application of the red chip company China Mobile to list on the main board of the Shanghai Stock Exchange.

Subsequently, on December 13, the Securities Regulatory Commission approved China Mobile's initial listing application; on December 27, China Mobile disclosed the results of its initial public offering.

The industry believes that China Mobile's "return to A" has set an example for the return of red-chip companies.

In the future, as policies continue to improve, red-chip companies "returning to A" will become a trend.

  In 2021, the insurance work will reach a new level

  The formation of a comprehensive three-dimensional insurance pattern

  Our reporter Zhu Baochen

  Trainee reporter Yang Jie

  In 2021, the important position of capital market investors will be further manifested and consolidated.

This year, the scale of individual investors in my country's capital market exceeded 190 million, and investor protection has also reached a new level.

  Investors are the foundation of capital market development.

"Respect investors, fear investors, and protect investors" is a major theme of regulatory work.

The new Securities Law came into effect on March 1, 2020, and the securities market has established a protection mechanism involving regulatory agencies, listed companies, intermediaries, and investors, and a three-dimensional investor protection pattern has gradually formed.

  Looking back at 2021, many milestone events were born in the protection of investors in the capital market.

Among them, the first practice of representative litigation is particularly interesting.

On November 12, 2021, the Intermediate People's Court of Guangzhou City, Guangdong Province made the first-instance judgment in the special representative litigation of Kangmei Pharmaceutical, and Kangmei Pharmaceutical and related persons liable to compensate 52,000 investors 2.459 billion yuan.

Subsequently, on November 26, Kangmei Pharmaceutical announced that the Intermediate People's Court of Jieyang City, Guangdong Province ruled to approve the reorganization plan.

Regarding the investor's rights in the securities misrepresentation class action lawsuit, the portion of the debt below 500,000 yuan will be fully paid in cash; the excess portion will be paid in cash, equity debt, trust income rights, etc.

  The above-mentioned cases were successfully concluded in a short period of time, which greatly improved investors' "sense of gain", demonstrated the popular nature of supervision work, and formed a powerful deterrent to serious financial fraud and illegal acts in the capital market.

  There are also breakthrough practices in common representative litigation in securities disputes. The successful handling of the false statement dispute between the investor and the defendant Feilo Acoustics has provided a replicable sample for the promotion of the securities class action system; the practice of civil compensation for market manipulation has also achieved "zero". "Breakthrough", in January 2021, the Sichuan Provincial Higher People’s Court filed the country’s first market manipulation civil compensation support lawsuit against the Investment Service Center (Plaintiff Yang v. Que, etc.). ), this is a powerful response to the second paragraph of Article 55 of the New Securities Law, "Investors who manipulate the securities market should be liable for compensation in accordance with the law".

  In addition, the protection of investors is also reflected in the improvement of the governance level of listed companies.

The Great Wisdom v. Zhang Changhong, the actual controller, and other five persons for harming the company’s interests were formally accepted by the Shanghai Financial Court. The country’s first insured institution’s shareholder subrogation litigation has been effective, and the protection of investors has gradually changed from regulations to formal implementation; CSI small and medium investors The service center, as an insurance agency, initiated the public solicitation of shareholder voting rights for the first time, making small and medium investors gradually an important driving force for optimizing corporate governance.

  If the rule of law is strong, the market will flourish, and if the rule of law is strong, the market will be strong.

As an important part of the capital market ecology, protecting investors means optimizing the capital market ecology and promoting the positive circulation of the market.

Yi Huiman, chairman of the China Securities Regulatory Commission, stated that in 2022, "the reform of the registration system will be used as a guide to comprehensively deepen the reform and opening up of the capital market."

Strengthening investor protection is the foundation of the reform of the registration system. Without investors’ trust and confidence in the market, there would be no healthy development and prosperity of the capital market.

  Investor protection is a long-term and systematic work to create a standardized, transparent, open, dynamic, and resilient capital market. Regulators have words and actions.

The multiple "firsts" set in the insurance sector in 2021 will surely lay a solid foundation for future investor protection work.

  Smooth merger of small and medium boards on the main board of Shenzhen Stock Exchange

  The plate structure is concise and positioning is clearer

  Our reporter Xing Meng

  On April 6, 2021, the main board of the Shenzhen Stock Exchange and the small and medium-sized board were formally merged, and three companies, including Zhenai Meijia, Zhongnong United, and Huaya Smart, had IPOs and were listed on the main board of the Shenzhen Stock Exchange.

The merger of the main board and the small and medium-sized board is conducive to optimizing the structure of the Shenzhen Stock Exchange, forming a development pattern where the main board and the ChiNext board have their own emphasis and complement each other, better meeting the financing needs of enterprises at different stages of development, and enhancing the service functions of the Shenzhen Stock Exchange.

  As an important part of my country's multi-level capital market system, the small and medium board has played an important role in optimizing the economic structure, transforming growth momentum, and building a modern economic system.

Since its establishment, the SME board has been positioned as an internal board on the main board and operated under the framework of the main board system. After 16 years of development, the listed companies on the SME board have continued to grow and grow, and are similar to the main board in terms of market value, performance, and transaction characteristics.

The Shenzhen Stock Exchange has generally achieved the basic unification of the main board and small and medium-sized board business rules, and initially established a concise and efficient self-regulation of listed companies with listing rules as the core, standardized operation guidelines, industry and special business information disclosure guidelines, and handling guidelines as supplements. Rule system.

This shows that the merger of the "two boards" is a matter of course.

  Regarding the merger, there are also some concerns in the market, worrying that the valuation of listed companies, issuance and listing, investment and financing services will be affected.

However, judging from the operation of more than half a year after the merger, this concern has obviously been dispelled.

As of December 31, 2021, the total equity of 2,578 listed companies on the Shenzhen Stock Exchange was 2.45 trillion shares, and the total market value reached 39.64 trillion yuan, an increase of 7.01% and 15.93% respectively over the same period of the previous year; the SME composite index closed at 14530.72 points, a cumulative increase of 14.17%; the SME 100 index closed at 9985.74 points, a cumulative increase of 4.62%.

  In terms of details, the merger revolved around the overall arrangement of "two unifications and four unchanging".

Among them, the "two unifications" refer to the unified business rules of the main board and the small and medium-sized boards, and the unified operation and supervision mode; the "four unchanged" refers to the unchanged issuance and listing conditions after the merger of the sectors, the investor threshold remains the same, the trading mechanism remains the same, and the securities The code and abbreviation remain unchanged.

The merger only makes adaptive adjustments to certain business rules, market products, technical systems, and issuance and listing arrangements, and generally has little impact on market operations and investor transactions.

  On the whole, after the merger of the main board of the Shenzhen Stock Exchange and the small and medium-sized board, the overall operation is stable, providing clearer and more powerful financial support for small and medium-sized enterprises.

After the merger is completed, the Shenzhen Stock Exchange will form a market structure dominated by the main board and the ChiNext. The main board of the Shenzhen Stock Exchange will focus on supporting relatively mature corporate financing development, excellence and strength, and the threshold for issuance and listing will remain unchanged; ChiNext will mainly serve high-tech companies and companies. Growing innovation and entrepreneurial enterprises, highlighting the "three innovations" and "four innovations".

The Shenzhen market has a simpler market structure, more distinctive features, and a clearer positioning. It can provide financing services for different types of enterprises at different stages of development, further enhance the vitality and resilience of the capital market, better serve innovation-driven development strategies, and promote innovation Leading high-quality development.

  SFC issued 321 fines

  Accelerate the construction of a multi-level accountability system

  Our reporter Du Yumeng

  The just past 2021 is not only the first year of the "14th Five-Year Plan", but also a crucial year for the further implementation of the new securities law.

As regulators continue to emphasize "zero tolerance" for violations of laws and regulations in the capital market, a number of major and important cases have been investigated and dealt with one after another.

On the whole, "Don't dare to violate, cannot violate, don't want to violate" has increasingly become the consensus of all participants.

  "Securities Daily" reporter combed through the information disclosed on the official websites of the Securities Regulatory Commission and local securities regulatory bureaus and found that in 2021, the CSRC and local securities regulatory bureaus issued a total of 321 administrative penalty decisions.

At the same time, a number of typical cases that have attracted much market attention have been pronounced one after another.

  In September, the Zhejiang Provincial Higher People’s Court issued a second-instance judgment to uphold the original judgment in the country’s first ordinary representative lawsuit (Wuyang Debt case); in October, the Shanghai No. 1 Intermediate People’s Court sentenced Beibadao Group to manipulate the securities market in the first instance. Was fined 300 million yuan; In November, the Intermediate People's Court of Foshan City, Guangdong Province publicly sentenced 12 people including Ma Xingtian, the former chairman and general manager of Kangmei Pharmaceutical, for manipulating the stock market. Among them, Ma Xingtian was sentenced to 12 years in prison and fined. RMB 1.2 million and five independent directors also have to bear hundreds of millions of joint and several liability for compensation. This gives all parties in the market a first-hand experience of the "zero tolerance" of the supervisory authorities.

  Take the Kangmei Pharmaceutical case as an example. With the fall of the first instance of the case, the sky-high fines issued against the independent directors of the listed company have obviously shocked the words and deeds of the independent directors of the listed company.

It can also be seen from this that, with the gradual improvement of my country’s capital market basic system construction, the continuous upgrade of the rule of law supply, and the implementation of the “zero tolerance” attitude at the operational level, it further reflects the strict crackdown on illegal behaviors in the capital market by the regulatory authorities. Ability and determination.

  Moreover, this “strong supervision” situation in the capital market reflects the continuous improvement of the rule of law on the one hand, and on the other hand the increasingly serious and complex situation of securities violations and crimes, the need to continuously strengthen administrative law enforcement and criminal justice Cohesion and cooperation.

For example, centering on "building a system", in July 2021, the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council announced the "Opinions on Strictly Cracking down on Securities Illegal Activities in accordance with the Law", to speed up the improvement of the securities law enforcement judicial system and mechanism, and increase the investigation and punishment of major illegal cases. Important arrangements have been made for punishment.

In the same month, the Measures for Administrative Penalties for Illegal Acts in Securities and Futures were officially implemented.

  From the perspective of "execution linkage", in March 2021, the Criminal Law Amendment (11) has been officially implemented, greatly increasing the penalties for crimes such as fraudulent issuance and fraudulent information disclosure.

  According to the data disclosed by the China Securities Regulatory Commission, in the first half of 2021 alone, the China Securities Regulatory Commission transferred a total of 119 suspected criminal cases and clues to the public security organs, and transferred 266 persons involved in the case, an increase of more than double the same period last year.

At the same time, 17 copies of major cases were sent to the procuratorial organs.

  With the joint efforts of the "securities, public security, and procuratorial", the capital market has not only accelerated the construction of the work pattern of "quick fines, quick investigations and quick prosecutions," but a three-dimensional accountability system including administrative, criminal, and civil is also taking shape. It will speed up the construction of a standardized, transparent, open, dynamic and resilient capital market, and promote the capital market to move forward steadily on the road of deepening reforms.

  As a major meeting to set the tone for China's economic work in 2022, the Central Economic Work Conference to be held in December 2021 specifically pointed out that it is necessary to "fully implement the registration system for stock issuance" and "strengthen the construction of financial rule of law."

This means that in the future, with the registration system reform as the lead, the capital market will be more promising in terms of the construction of related supporting systems.

  Beijing Stock Exchange pilot registration system reform is implemented

  The number of qualified investors exceeds 4.75 million

  Our reporter Chang Xiaoyu

  In 2021, the capital market will usher in the third national stock exchange-Beijing Stock Exchange (hereinafter referred to as the "Beijing Stock Exchange").

So far, my country's multi-level capital market has formed a pattern of dislocation development and interconnection among the three major exchanges in Beijing, Shanghai and Shenzhen.

  On September 2, 2021, the name "Beijing Stock Exchange" sounded at the Service Trade Fair for the first time. The deeply inspired capital market was excited and immediately implemented it with all its strength. It only took 74 days to complete the preparatory work for the opening of the market. This is also the stock exchange with the shortest preparation time in my country.

  Speed ​​is not the only bright spot in the construction of the Beijing Stock Exchange, and the task of supporting the high-quality development of innovative SMEs is also particularly dazzling.

Based on market positioning, the Beijing Stock Exchange fully respects the development laws and growth stages of innovative SMEs. It not only follows the general laws of stock exchange market construction, but also introduces inclusive system design in market access, financing, and exit arrangements.

  On November 15, 2021, the Beijing Stock Exchange sounded gongs to open the market.

The chairman of the China Securities Regulatory Commission, Yi Huiman, said at the opening ceremony, “The establishment of the Beijing Stock Exchange is a major decision and deployment made by the Party Central Committee and the State Council to build a new development pattern and promote high-quality development. The financial support system for SMEs is of great significance to promote innovation-driven development and economic transformation and upgrading."

  In fact, the Beijing Stock Exchange has indeed "fulfilled its mission", and a series of data is the best proof.

As of December 31, 2021, the number of companies listed on the Beijing Stock Exchange has increased to 82, with a total market value of 272.275 billion yuan, of which 4 companies have a total market value of over 10 billion yuan.

Since the opening of the market, the average daily turnover of the Beijing Stock Exchange has increased by 3.04 times compared with the selected layer in August 2021, the average daily turnover rate is 1.79%, and the overall annual turnover rate is 434.26%, which is in line with the liquidity characteristics of small and medium-sized market capitalization stocks.

In 2021, the average increase of stocks in the entire market of the Beijing Stock Exchange is 98.90%, and the market wealth effect has initially appeared.

  In addition, investors are another vital group of the Beijing Stock Exchange, and the high enthusiasm of investors to open an account is the most direct manifestation of the coordinated development of investment and financing brought about by the opening of the Beijing Stock Exchange.

As of the end of 2021, the number of qualified investors exceeded 4.75 million, which was approximately 2.8 times that before the announcement of the establishment of the Beijing Stock Exchange. Institutional investors are also accelerating their deployment, with existing public offering funds entering the market for trading, and all 8 newly established theme funds are over-raised. Social security funds and QFII have entered the market.

  It should be noted that the Beijing Stock Exchange has been operating steadily in accordance with the registration system logic since its birth, and has become a new attempt under the vision of the registration system for the entire market.

Since the establishment of the Beijing Stock Exchange, the number of companies seeking to go public in accordance with the registration system has been increasing steadily and orderly, and the Beijing Stock Exchange’s pilot registration system has actually been implemented.

  As the issuance review progresses steadily, the “reserve team” of the Beijing Stock Exchange continues to expand.

According to data from the official website of the Beijing Stock Exchange, as of December 31, 70 companies were in the issuance and listing review stage, including 15 accepted, 37 inquired, 16 suspended, and 2 passed the listing committee meeting.

  In addition, the NEEQ listed companies have a strong willingness to prepare for the Beijing Stock Exchange, and the preparatory process has been significantly accelerated.

As of December 31, 2021, 180 companies have submitted materials for listing counselling on the Beijing Stock Exchange, with sufficient reserves.

  The Beijing Stock Exchange has formed a relatively complete reserve echelon of companies to be listed. It is expected that with the deepening of the registration system reform, the number of listed companies on the Beijing Stock Exchange will continue to grow, and more innovative small and medium-sized enterprises will grow into the real economy with the help of capital. The pillar strength.

  Looking ahead, as a “newborn”, the Beijing Stock Exchange still faces many challenges, but it is also full of hope. As mentioned in the Beijing Stock Exchange’s 2022 New Year’s speech, “the Beijing Stock Exchange still has a long way to go to build a high-quality building” and “continue to consolidate the Beijing Stock Exchange. The stock exchange is off to a good start."

(Securities Daily)