Zhongxin Finance, March 11 (Zuo Yuqing Shi Rui) "Improve the bond financing support mechanism for private enterprises, fully implement the stock issuance registration system, and promote the stable and healthy development of the capital market." On March 5, the comprehensive registration system was written into This year's government work report.
From the establishment of the Science and Technology Innovation Board and the pilot registration system in 2018, to the implementation of the registration system for the ChiNext Board in 2020, and to the establishment and implementation of the registration system of the Beijing Stock Exchange in 2021, the conditions for the full implementation of the registration system have continued to mature.
So, what does the full implementation of the stock issuance registration system mean for China?
Will it cause an IPO blowout?
What supporting measures are required for its implementation?
In the "Two Sessions Economic Observation" launched by Zhongxin Finance and the School of Economics and Management of Tsinghua University, Chen Xiao, a professor at the School of Economics and Management of Tsinghua University, explained the full implementation of the registration system to the "China New Observation" column of Chinanews.com.
Chen Xiao, Dean and Professor of the Accounting Department of the School of Economics and Management of Tsinghua University.
Photo courtesy of Tsinghua University School of Economics and Management
Implement the registration system to build a great company through the capital market
Since the reform and opening up, my country's private capital has become more and more active, there have been more and more scientific and technological talents, and international exchanges have become more and more frequent. Therefore, my country's enterprises have considerable innovation capabilities.
However, how to send innovative companies that are not yet mature but have development potential to the market has become a difficult problem.
"In the previous system, whether it was an audit system or an approval system, the audit standards of the competent authorities mainly depended on the company's past financial indicators, so many listed companies are mature companies." Chen Xiao believes that the company's listing is to make resources available The configuration is more effective and promotes the progress of technology and industry.
"We should send some good seedlings to the market, and then use the capital market to build great companies, instead of sending great companies to the market. This is the purpose of implementing the registration system." Chen Xiao said that the implementation of the registration system is based on information disclosure. The core is to ensure the transparency of company information, but leave the choice to the market.
It is up to investors to judge the quality of a listed company, and the judging criteria should focus on the future rather than past performance.
IPO blowout is a false proposition
After the full implementation of the stock issuance registration system, will it cause an IPO blowout?
How to prevent some companies from fishing in troubled waters?
Chen Xiao believes that buying stocks is a "buyer's conceit", and only those who are able to bear high risks are suitable to enter the market.
After the full implementation of the registration system, it is a normal phenomenon that "fish eyes are mixed with pearls", and therefore can "big waves wash the sand".
"Companies need to show their potential to investors in order to be favored by the market." Chen Xiao pointed out that if the company cannot convince investors, even if it passes the relevant review, the company will not be able to go public.
Therefore, the IPO blowout is actually a false proposition.
Taking the United States with the most liberal registration system as an example, the number of listed companies has declined in the past 10 years.
"The current implementation of the new "Securities Law" requires intermediaries to bear joint and several liability for the information disclosure of listed companies, which also provides legal protection for the implementation of the registration system."
Chen Xiao said that since the pilot of the registration system, more than 400 companies have been listed on the Science and Technology Innovation Board, and the number of companies listed on the Growth Enterprise Market has reached 300. Except for the recent fluctuations in the Chinese stock market caused by external factors, the Chinese stock market has not fallen sharply due to the introduction of the registration system. It has risen sharply, and it has not even fallen but has risen, which shows that the implementation of the registration system is the right choice.
The comprehensive registration system still needs to improve the market supporting tools
From the pilot to the full implementation, Chen Xiao believes that the current legal support for the registration system is complete, but the market support is still insufficient.
"The registration system should not only focus on information disclosure in the review process, and leave substantive judgment to investors, but also provide investors with tools for judgment." Chen Xiao said that what investors urgently need today are tools that can be directly shorted , used to eliminate and shuffle the company.
Chen Xiao believes that both long and short are investment tools. Only when the two tools are balanced, the market will become balanced and stable.
"Of course, there are short-selling rules to prevent malicious shorting."
Chen Xiao said: "At present, my country has margin financing and securities lending as a short-selling tool, but the actual situation is that financing is easy and difficult. At present, financing on the main board accounts for 97%, and securities lending only accounts for 3%. Most of the stocks are in the hands of major shareholders. It is impossible for major shareholders to lend out their own stocks and short themselves. The current mechanism of margin financing and securities lending not only does not reduce market risks, but also amplifies them.” (End)