(Economic Observation) The system is officially implemented. China's stock market ushers in the era of "comprehensive registration system"
China News Agency, Beijing, February 17 (Reporter Chen Kangliang) On the 17th, the China Securities Regulatory Commission issued the relevant system rules for the full implementation of the stock issuance registration system, which will come into effect on the date of publication.
Analysts pointed out that the release and implementation of the rules for the comprehensive stock registration system marks the basic finalization of the institutional arrangements for the registration system in China's stock market, and the promotion of the registration system to the entire market and various public offerings of stocks. This is a milestone in the reform and development of China's capital market.
According to Hu Yuexiao, an analyst at Shanghai Securities, the comprehensive registration system reshapes the listing process of companies from the perspectives of issuance conditions, registration procedures, and information disclosure. It insists on information disclosure as the core, and supervision no longer makes judgments on the value investment of companies.
On the one hand, the listing efficiency of enterprises has been significantly improved, and the equity financing structure has been further optimized, which has promoted the expansion of capital market targets. However, more inclusive listing conditions do not mean that supervision has relaxed the control of listing quality, and "zero tolerance" law enforcement is still inevitable.
On the other hand, the improvement of the supporting delisting system will make the listing and delisting of enterprises more market-oriented, accelerate the survival of the fittest in the market, and promote the positive circular development of the capital market, which will help boost investor confidence and continue the stable and positive trend in the medium and long term.
China's capital market is ushering in the era of a comprehensive registration system, and the basic system will be gradually improved.
Hu Yuexiao further pointed out that the reform has clarified the functional positioning of each sector. The main board should highlight the characteristics of "large-cap blue chips" and focus on supporting large-scale enterprises in the mature stage; Serving growing innovative and entrepreneurial enterprises; Beijing Stock Exchange is committed to building a main position serving innovative small and medium-sized enterprises.
The structure of China's multi-level capital market system is becoming more and more clear, and the links between various sectors are strengthened through IPO (initial public offering), transfer, spin-off and listing, mergers and acquisitions, etc., so as to promote the listing and financing of high-quality emerging industry companies, achieve healthy competition, and better Serve the real economy and promote the transformation and upgrading of China's industrial structure.
Li Xunlei, chief economist of Zhongtai Securities, believes that the reform of the comprehensive registration system is one of the important tasks in the construction of a modern capital market with Chinese characteristics, and the system itself is full of "Chinese characteristics". One of the manifestations is that it has a clear orientation to the industry to which listed companies belong .
This reform requires the China Securities Regulatory Commission to check whether the issuer complies with the national industrial policy and sector positioning. It is expected that high-tech industries and strategic emerging industries will gain more development opportunities in China's capital market.
In response to the question of whether the comprehensive registration system that some investors are concerned about will bring about a "big expansion" of new shares, Li Xunlei said that from the situation of the pilot registration system on the Science and Technology Innovation Board and the Growth Enterprise Market, the regulatory authorities have strengthened IPO guidance and IPO on-site inspections, suppressing IPOs. The issuer’s primary responsibility for information disclosure and the intermediary agency’s “gatekeeper” responsibility have not seen a surge in the number of IPOs due to the implementation of the registration system.
Zhao Yu, a researcher at the China Merchants Bank Research Institute, pointed out that under the comprehensive registration system, the positioning of each sector is clearly divided, and policies guide capital flow to the direction of state-supported development.
Now the focus of policy is on technology, and the GEM and Science and Technology Innovation Board are the focus.
In 2022, the number of IPOs on the Science and Technology Innovation Board and ChiNext Board that implement the registration system will account for 79% of the total number of IPOs on the Shanghai and Shenzhen Stock Exchanges, and the proportion of funds raised by new shares on the Science and Technology Innovation Board and ChiNext Board will also be as high as 82%. The proportion is limited.
Considering that the basic structure of stock exchange review and registration with the China Securities Regulatory Commission remains unchanged, the overall pace of listing and issuance of enterprises is controllable.
The comprehensive registration system will not bring about a surge in the number of IPOs.
Regarding the impact of the comprehensive registration system on the trend of A-shares, Li Xunlei believes that under the comprehensive registration system, China's capital market will surely play a better role in direct financing.
Referring to the experience of the 2007 equity split reform, the 2012 GEM reform, and the 2019 Science and Technology Innovation Board pilot registration system, etc., a big bull market in history will inevitably be accompanied by big financing. Therefore, there may be an index-level bull market in the market from this year to next year.
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