(Economic Observer) China launched a comprehensive registration system reform and the capital market welcomes new opportunities for development

  China News Agency, Beijing, February 1st (Reporter Chen Kangliang) China's capital market is facing another major reform.

On February 1, the China Securities Regulatory Commission publicly solicited opinions from the public on the draft of major system rules such as the "IPO Stock Registration Management Measures" involved in the full implementation of the stock issuance registration system.

The full implementation of the stock issuance registration system reform was officially launched.

  Suo Lihui, general manager of Goldman Sachs Gao Hua, said that the implementation of the comprehensive registration system reform is a major milestone in the development of China's capital market. Its launch is widely expected by the market and will surely release the greater potential of the capital market to support the development of the real economy.

The conditions for the reform of the registration-based system to be fully implemented from the pilot program are mature. Not only are there clear upper-level legal support and judicial practice, but also the experience of more than 1,000 companies listed on China’s A-shares through the registration system has been accumulated. Market-oriented issuance pricing has become more and more important. The more effective restraint mechanism.

It can be said that the registration system has withstood the test of market practice.

  Since the official announcement of the establishment of the Sci-tech Innovation Board and the pilot registration system in November 2018, after the implementation of the "stock + incremental" reform on the GEM, and the opening of the Beijing Stock Exchange and the simultaneous pilot registration system, the reform of the registration system can be described as fast and steady. , move forward steadily.

  The person in charge of the relevant department of the China Securities Regulatory Commission stated that this reform will summarize the experience of the pilot registration system, promote the system that has been proven effective in practice, and further improve the registration system arrangement.

Including optimized registration procedure.

Adhere to the basic structure of exchange review and CSRC registration with their own emphasis and mutual connection.

Further consolidate the main responsibility of the exchange for issuance and listing review, and the exchange conducts a comprehensive review of whether the company meets the issuance conditions, listing conditions and information disclosure requirements.

The China Securities Regulatory Commission makes a decision on whether to approve the registration based on the review opinions of the exchange.

  Unified registration system.

Integrate the pilot registration system rules of Shanghai Stock Exchange and Shenzhen Stock Exchange, formulate unified initial public offering stock registration management methods and listed company securities issuance registration management methods, and the registration system rules of Beijing Stock Exchange are generally consistent with those of Shanghai Stock Exchange and Shenzhen Stock Exchange .

The Exchange formulates and revises the Exchange’s unified business rules for stock issuance and listing review.

  Improve the mechanism of supervision and checks and balances.

The China Securities Regulatory Commission strengthened the overall coordination, supervision and assessment of the audit work of the exchanges, and urged the exchanges to improve the audit quality.

Reform and improve the personnel composition, tenure, responsibilities and rules of procedure of the Listing Committee and the Reorganization Committee (hereinafter referred to as the "two committees"), put forward higher requirements for political quality, professional background, and professional ethics, increase the proportion of full-time personnel, strengthen discipline constraints, and effectively exert The gatekeeping role of the "two committees".

  Suo Lihui further stated that from the perspective of the A-share market structure, professional institutional investors are playing an increasingly important role. Foreign-funded institutions are also optimistic about China's economic development and the A-share market, actively deploying Chinese assets, and market valuations will also be higher. tend to be rational.

In this context, the registration system will optimize the listing threshold for companies in different industries, different development stages, and different development models, so that more high-quality companies can be recognized by the market, provide investors with more and better targets for wealth management, and increase capital. The market serves the efficiency and results of the development of the real economy.

  Regarding the impact of the comprehensive registration system on A-shares, Xun Yugen, chief economist of Haitong Securities, said that on the one hand, the comprehensive registration system is conducive to improving the structure of the A-share industry. The number and scale of public offering) projects have steadily increased.

Under the comprehensive registration system, more and more emerging industry companies are expected to be listed on the A-share market, and the proportion of "new economy" in the market will further increase, which in turn will help China's industrial transformation and upgrading trend.

  On the other hand, after the implementation of the comprehensive registration system, A-share valuation and transaction structure may further diverge.

In the past, companies with small market capitalization also had considerable "shell value". The registration system greatly compressed the "shell value", thereby further strengthening the connection between the stock price performance of listed companies and the fundamentals.

  Dong Dengxin, director of the Finance and Securities Research Institute of Wuhan University of Science and Technology, told reporters from China News Agency that after the full implementation of the registration system, China's economic transformation and industrial upgrading will go further.

High-tech companies with strong R&D and innovation capabilities will be more sought after, which will lead more companies to move in the direction of R&D and innovation.

At the same time, the number of delisted companies will further increase, and a large number of "junk stocks", "shell companies" and "zombie companies" will withdraw from the market, giving way to high-quality companies that truly represent the direction of the industry with effective and scarce listing resources.

It is foreseeable that after the full implementation of the registration system reform, China's capital market will continue to deepen reform around the direction of marketization, rule of law, and internationalization, so as to better serve the high-quality development of the real economy.