What does the three major reforms of China's capital market "keep hand in hand" mean for A shares?

(Economic Watch) What does the three major reforms of China's capital market "keep hand in hand" mean for A shares?

　　China News Agency, Beijing, March 17 (Xia Bin Liu Wenwen) The China Securities Regulatory Commission once again mentioned in its research and deployment of the content of the latest special meeting of the State Council's Finance Committee that it will steadily promote the comprehensive implementation of the reform of the stock issuance registration system.

In fact, since 2022, as the main line of deepening the reform of the capital market, the two reforms of comprehensive registration system and protection of investors and high-level opening to the outside world have "kept hand in hand". What does this mean for A shares?

　　From the incremental pilot of the Science and Technology Innovation Board to the breakthrough of the stock of the ChiNext, to the simultaneous pilot of the Beijing Stock Exchange, the comprehensive registration system reform has been steadily advanced, and is now being rolled out to the whole market.

　　Pang Ming, chief strategist of China Renaissance Capital, told a reporter from China News Agency that the full implementation of the registration system is "a ripe fruit and a matter of course."

The full rollout of the registration-based reform will become a key link for the comprehensive deepening of the reform of the capital market.

On the one hand, it is expected to further improve the efficiency of issuance and listing review, promote the establishment and development of a multi-level capital market, broaden the choice path and space for enterprises to obtain capital platforms, and provide another high-quality choice for innovative economic listing.

　　On the other hand, it will help the reform of the capital market to enter the “deep water area” firmly and smoothly, and cooperate with supporting measures such as building a multi-level capital market, expanding opening up, and improving the investor protection mechanism, which will ultimately help promote the sustainable and healthy development of the market. The investor structure has been continuously improved, the market has gradually become stable and rational, and the misallocation of resources and value misvaluation in shell companies has been compressed, and the vitality and power of the capital market have been released on a deeper level.

　　Tian Lihui, dean of Nankai University's Financial Development Research Institute, said that if the reform of the comprehensive registration system can be taken as the leader to boost the supply-side reform of the capital market, it will have a comprehensive system benefit for the market.

The reform of the registration system will inevitably lead to an increase in the number of listed companies. To prevent the occurrence of a mixed situation, it is necessary to resolutely implement the main responsibility of market intermediaries and effectively improve the quality of supervision.

If these can be achieved, the quality of Chinese listed companies will continue to improve, forming an important support for the stock market.

　　Pang Ming pointed out that after the comprehensive promotion of the registration system reform, the number of IPOs in the A-share market will continue to grow, and the proportion of direct financing is expected to continue to increase. Huge room for growth and development potential.

　　The full implementation of the registration system reform should be prudent and prudent. Tian Lihui reminded that we must pay attention to the openness, fairness and impartiality of the capital market, improve the quality of information disclosure, optimize the trading system, and implement the protection of small and medium investors.

　　The recently held 2022 Investor Protection Work Conference requires that the institutional mechanism and regulatory system for investor protection be further improved, and more precise and pragmatic measures should be taken to continuously improve the effectiveness of investor rights protection and better serve the high-quality capital market. developing.

　　At present, the number of investors in the A-share market has exceeded 200 million.

Whether the legitimate rights and interests of the majority of small and medium investors can be well protected is a key criterion for measuring the success of the registration system reform.

　　Zhu Jiandi, chairman of Lixin Certified Public Accountants, believes that investor protection is a systematic project, which not only requires the concerted efforts of all parties, but also requires supporting systems, effective supervision, and severe punishments. Targeting different risk issues, precise policies are implemented to effectively enhance investment. We will strive to create a standardized, transparent, open, dynamic and resilient capital market.

　　The reform of China's capital market has never been "closed door". In the context of coordinating opening up and security, it has always been unswervingly promoting institutional opening up.

　　The CSRC also pointed out that it is necessary to further promote high-level opening to the outside world, such as strengthening the pragmatic cooperation between the mainland and Hong Kong capital markets; striving to reach an agreement on audit supervision cooperation between China and the United States as soon as possible; speeding up the implementation of new regulations on the supervision of overseas listing of enterprises.

　　Pang Ming said that continuing to firmly promote a higher level of opening to the outside world, and promoting the two-way opening of the capital market from the channel type to the comprehensive market interconnection, is conducive to building a standardized, transparent, open, dynamic and resilient multi-level capital market. system, guide more medium and long-term capital, domestic capital and foreign capital to enter the domestic market and participate in China's financial reform and opening up, give full play to the role and function of the domestic capital market in equity financing, price discovery and risk management, and promote the structural reform of the domestic financial supply side.

　　He also mentioned that while attracting foreign capital to seize the development opportunity to "come in" to invest in China's real economy and financial market, it can also encourage China's real economy, high-quality enterprises and financial industry to improve their ability to "go out" to participate in international market competition, use Good overseas financial resources.

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