After "Flowers", China's securities market "continuously blooms"

　　China News Service, Shanghai, January 19th, Title: After "Flowers", China's securities market "continuously blooms"

　　Author Gao Zhimiao

　　The ripples caused by the TV series "Flowers" are still continuing.

The play presents many scenes from the early stages of the construction of China's securities market, and also allows the audience to look back at the development of China's securities market.

From nothing to something, from something to something big, after the era set by "Flowers", the development of China's securities market has "continuously blossomed."

　　The "big power" behind the "little paper head"

　　The male protagonist "Abao" in the TV series "Flowers" obtained "the first pot of gold in life" from the stock market and entered the ranks of "big investors".

As the narration in the play says: The stock subscription warrants first issued in Shanghai in 1992 were the biggest opportunity in the early days of the Chinese stock market.

There is a "big power" behind the "small paper head", which also gave birth to the standardized management of China's securities market.

　　The official public account of the China Securities Museum, "China Securities Exchange", shows that in December 1991, when new shares were issued in Shanghai, supply exceeded demand, and tens of thousands of people lined up all night to subscribe for shares.

In order to solve this problem and reflect "openness, fairness and impartiality", Shanghai tried to issue "stock subscription warrants".

　　It is understood that new stock subscription certificates can be purchased once and used throughout the year. Each certificate costs 30 yuan (RMB, the same below). Lots will be drawn during the issuance of new shares. According to regulations, no refund will be given if the lottery is not successful. All subscription funds for the subscription certificates will be donated to the Shanghai Municipal Government. Social welfare agencies.

　　Some social phenomena caused by stock subscription warrants have also brought new issues to the development of the securities market.

In order to adapt to new development needs, the Securities Commission of the State Council and the China Securities Regulatory Commission were established in 1992, marking the beginning of the establishment of a unified national capital market regulatory system.

In April 1993, the "Interim Regulations on the Administration of Stock Issuance and Trading" was promulgated, formally establishing a unified national stock issuance system.

　　Institutional innovation achieves development leap

　　The evolution history of the stock issuance system is also the history of the development of China's securities market.

After more than 30 years of development, from the approval system and the verification system to the current comprehensive implementation of the registration system, the new stock issuance method has continued to leap towards the direction of legalization and marketization.

　　According to Rui Meng, a professor of finance and accounting at China Europe International Business School, China's securities market has achieved a certain degree of "developmental leap" through more than 30 years of reform and development. He summarized the institutional evolution of these 30 years of development into four stages.

　　The period from 1990 to 1992 was the start-up stage, the period from 1993 to 1998 was the approval system stage, the period from 1999 to 2019 was the approval system stage, and the current stage is the implementation of the registration system.

"Judging from the evolution of the company's listing and issuance system, this series of reforms has made the development of China's securities market from relatively immature to relatively mature." Rui Meng said.

　　According to Han Hanjun, deputy director and researcher of the Institute of Economics of the Shanghai Academy of Social Sciences, the split share structure reform in 2005 and the registration system reform in 2019 are landmark institutional innovations in the more than 30 years of development of the securities market.

　　"The share-trading reform has solved the problem of the difference in circulation system between non-tradable shares and tradable shares that has long existed in China's stock market and has plagued the development of the stock market, and has eliminated a major obstacle to the long-term stable development of the stock market. The establishment of the Science and Technology Innovation Board and The pilot registration system and the full implementation of the registration system in the stock market have removed obstacles for the eventual realization of complete marketization of China's stock market," Han Hanjun pointed out.

　　Future development will be in line with international trends

　　The development of the securities market is inseparable from the strength of the stock exchange.

After more than 30 years of growth, the Shanghai Stock Exchange, established in 1990, has developed into a stock exchange with four major categories of securities trading products: stocks, bonds, funds, and derivatives, and a relatively complete market structure.

It is also the third largest stock exchange in the world and one of the most active stock exchanges in the world.

As of the end of 2022, the total market value of the Shanghai Stock Exchange's stocks and the amount of funds raised from IPOs (initial public offerings) ranked third and first in the world respectively.

　　Official data from the Shanghai Stock Exchange shows that as of the end of 2022, the number of listed companies on the Shanghai Stock Exchange has reached 2,174, with a total market value of 46.4 trillion yuan; the cumulative stock transaction volume in 2022 is 96.3 trillion yuan, and the total stock market financing is 847.7 billion yuan.

　　At present, China's capital market is further opening up to the outside world and has become an important player in the international capital market.

Rui Meng emphasized that in terms of regulatory agencies, once a system is in place, the implementation of the system must also be in line with international standards.

In terms of financial institutions, more institutional investors should participate.

As for individual investors, residents should regard the stock market as an important market for wealth management.

The future will enter the era of equity, and it is necessary to rely on equity assets to bring continuous wealth to investors.

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