Abstract The Standing Committee of the National People's Congress voted on the afternoon of the 27th to "Decision on Authorizing the State Council to Adjust and Apply the Relevant Provisions of the Securities Law of the People's Republic of China in Implementing the Reform of the Issuance of Stock Issuance." The implementation period of this decision is two years and it is decided to implement it on March 1 next year. ...
On the afternoon of the 27th, the Standing Committee of the National People's Congress voted to pass the "Decision on Authorizing the State Council to Adjust and Apply the Relevant Provisions of the Securities Law of the People's Republic of China in Implementing the Reform of the Registration System for Stock Issuance." The implementation period of this decision is two years and it is decided to implement it on March 1 next year. The CSRC said that in the next step, in accordance with the authorization decision of the National People's Congress, the State Council's work requirements for implementing the reform of the stock issuance registration system will be earnestly implemented, and the formulation of supporting rules and other preparatory work will be promptly carried out, and it will be actively, steadily and orderly. Promote the reform of the registration system.
The decision pointed out that in order to implement the reform of the stock issuance registration system and further exert the basic functions of the capital market to serve the real economy, the 18th meeting of the Standing Committee of the 12th National People's Congress decided to authorize the State Council to deal with the Shanghai Stock Exchange and Shenzhen Stock Exchange. For the public issuance of stocks listed and traded, the relevant provisions of the Securities Law of the People's Republic of China on the public approval system for stocks shall be applied, and the registration system shall be implemented. The specific implementation plan shall be formulated by the State Council and reported to the Standing Committee of the National People's Congress for the record.
The decision pointed out that the State Council should strengthen the organization and leadership of the reform of the stock issuance registration system, and make an interim report to the Standing Committee of the National People's Congress on the implementation of the decision. The securities regulatory authority under the State Council shall, in conjunction with relevant departments, strengthen post-event supervision, prevent and resolve risks, and effectively protect the legitimate rights and interests of investors.
The China Securities Regulatory Commission said that the formal adoption of this decision marks a clear legal basis for promoting the reform of the stock issuance registration system, a major progress in the construction of a basic system for the capital market, and a major measure to improve the top-level design of the capital market. The land plays a functional role in the development of the capital market to serve the real economy, and implements the requirements of the central government to promote the supply-side structural reforms, and provides a strong legal guarantee.
The China Securities Regulatory Commission pointed out that the reform of the stock issuance registration system is a major change in the equity financing supervision system in China's capital market. The core of the reform is to rationalize the relationship between the market and the government, and to solve the problems caused by the information asymmetry between issuers and investors. It is necessary to standardize the responsibilities and boundaries of the regulatory authorities, give full play to the decisive role of the market allocation resources, and prevent excessive interference of the government departments in the market. The implementation of the registration system is to truly establish a system of responsibility for all parties involved in the market, establish and improve a new system of "wide-intensity, strict management, and integration", highlighting the effective protection of the legitimate rights and interests of investors and strictly regulating the market. Participate in the rights and obligations of all parties, and establish a strong legal restraint mechanism through clear responsibilities and strong regulatory compliance. Therefore, the reform of the registration system is by no means a simple decentralization review power, but a fundamental change in the regulatory approach. After the implementation of the registration system, the concept and method of stock issuance review will change greatly. The focus of the review is on the completeness, consistency and comprehensibility of information disclosure, and no longer judges the development prospects and investment value of the enterprise. The authenticity, accuracy and completeness of the disclosure are the responsibility of the issuer and the intermediary. In this sense, the requirements for reviewing information disclosure will be more stringent, and it will be more effective in investigating and cracking down on illegal activities such as fraudulent issuance. The protection measures for investors' legitimate rights and interests will be more effective. The implementation of the reform of the stock issuance registration system lacks experience in China, and it is necessary to explore and accumulate experience through practice, which can create more favorable conditions for the revision of the next Securities Law.
The registration system has brought about five major changes in the capital market.
The Standing Committee of the National People's Congress deliberated and passed the "Decision on Authorizing the State Council to Adjust and Apply the Relevant Provisions of the Securities Law of the People's Republic of China in Implementing the Reform of the Stock Issuance Registration System" on the 27th, which indicates that there is a clear legal basis for promoting the reform of the stock issuance registration system. .
The registration system is coming, what changes will happen in the capital market? How do investors need to adapt to these changes?
IPO will be more efficient
According to the data of the China Securities Regulatory Commission, there are currently more than 600 listed companies “waiting for trialâ€. The number of companies that meet the listing criteria of the Shanghai and Shenzhen Stock Exchanges is much larger than this.
The registration system reform will adjust the registration conditions, registration authorities, registration procedures, and audit requirements of the company's issuance and listing. By changing the current approval system, the listing efficiency of enterprises will be greatly improved, and a large wave of enterprises will be listed quickly in the next few years.
However, don't worry too much about market expansion, because these companies will not be swarming. The CSRC has repeatedly stated that the pace and price of new share issuance will eventually be liberalized, but the reform is a gradual process, and the price and rhythm will not be released one step at a time, which provides a buffer for the market.
Listed companies will lose their "regulatory endorsement"
Under the review system, people often think that the step of going to the market has been reviewed by the supervisory layer, and the listed companies are good enterprises. However, under registration, everything has changed.
The CSRC made it clear that the registration system is centered on information disclosure. The timing, scale and price of stock issuance are determined by the market participants. The investors independently judge and bear the risks of the issuer's asset quality and investment value. The issuer's information disclosure is complete, consistent, and understandable, and is no longer “endorsed†by the company.
This means that investors need to open their eyes to identify the value of the company's investment. As long as the company does not violate the law and violate the rules, investors can not lose the investment and can not blame the regulatory level.
The "new" boom will fall back
The ultra-high returns of more than ten daily limit boards have become the inexhaustible driving force for investors to be "new". Statistics show that as of the end of November, the online success rate of 192 companies issued in 2015 averaged 0.53%, and the average number of new shares issued in April and May increased by more than 600%.
The core of the registration system reform is to rationalize the relationship between the government and the market, and finally put the price control of the development line. The market will balance the stock supply and investment demand. Regardless of the new shares, the stock price will ultimately be the company value.
Industry insiders expect that with the advancement of the registration system reform, the “scarcity†of new shares will be reduced, pricing will be more market-oriented, and the premium level of new shares will fall after the listing, and the “new†boom will become a thing of the past.
"Shell value" will be lower and lower
In the current stock market, some listed companies, despite their poor performance, are still favored by listed companies, and become scarce "shell resources." This is because, under the approval system, IPOs have long cycle times and high costs. Enterprises that are eager to go public in the market sometimes use the backdoor to achieve rapid listing, and the cost of backdoors often amounts to several hundred million yuan.
The registration system reform will significantly reduce the cost of corporate listing financing. At the same time, the reform will also implement a strict delisting system, forcibly delisting fraudulent issuance and major illegal listed companies, and resolutely remove the “black sheep†from the market.
Industry insiders expect that under the registration system, the qualifications of listed companies will no longer be as scarce as they are now, and “shell resources†will also lose their current high prices. The improvement of the delisting system will also force many listed companies with only shell value to leave the market.
Illegal will pay a higher price
Insider trading, manipulating the market, fraudulent issuance... Although the regulatory authorities continue to crack down on illegal and illegal activities in the capital market, cases of violations of laws and regulations continue to emerge. Chen Shaoxia, chief researcher of Shenzhen Zijingang Capital Management Co., Ltd., believes that the reason is that the illegal cost is too low and the punishment is not enough.
Under the registration system, the regulatory focus of the regulatory layer will be moved from the approval of the front-end to the post-event link, and more regulatory forces will be placed on the inspection and enforcement. Those who violate the law by fraud and gain profits in the capital market can no longer be lucky.
The CSRC made it clear that the implementation of the registration system reform will effectively safeguard the market order of the "three public", severely crack down on and punish violations of laws and regulations, comprehensively strengthen the punishment of fraudulent issuance and false disclosure of information, protect the legitimate rights and interests of investors, and make illegal Violators pay a higher price.
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