Kechuang board + registration system A shares will enter a new era

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Kechuang board + registration system A shares will enter a new era

2018-11-18 10:25:20 161 ℃


On November 5th, President Xi Jinping said that he will set up a scientific board and pilot in the Shanghai Stock Exchange. Immediately after the news of the registration system was announced, it caused a huge response in the capital market. On the same day, the China Securities Regulatory Commission, the Shanghai Stock Exchange and the Ministry of Finance expressed their views. Personally, the establishment of the science and technology board and the pilot registration system means that the A-share market will enter a new era.

As early as 2015, Shanghai proposed the idea of ​​setting up a strategic emerging industry board, but for various reasons, it did not make a trip. The science and technology board proposed today should be an extension of the emerging industry board in the past, but it is different from the strategic emerging industry board. Of course, compared with the ChiNext market, it will certainly be different.

The China Securities Regulatory Commission said that the company will make more appropriate differentiation arrangements in terms of profitability and shareholding structure, and enhance the inclusiveness and adaptability of innovative enterprises. Although the final relevant rules have not yet been issued, the position of the China Securities Regulatory Commission has indicated that technology-based and innovative enterprises that have not yet been profitable in the future or have an AB shareholding structure will be listed on the Science and Technology Board. In addition, the CSRC indicated that it will guide the SSE on the characteristics of innovative enterprises, strengthen the appropriate management of science and technology investors in terms of assets, investment experience and risk tolerance, and guide investors to participate rationally. This statement or revealed that retail investors or small and medium investors will be excluded from the science and technology board in the future.

Once, the GEM was hailed as China’s “Nasdaq”, but due to the profitability requirements of the GEM’s listing, it is impossible for the GEM to accept loss-making enterprises. Therefore, the GEM cannot become China's "Naskera", but the science and technology board is entirely possible. It is precisely because of this, small and medium-sized retail investors invest in the board, or can only rely on public funds.

Building China's "Nasdaq" has been a big goal for us. Nowadays, with the arrival of the science and technology board, it is conducive to building a multi-level market structure system. Moreover, the science and technology board will also fill the shortcomings of the capital market service technology innovation enterprises, which will be of great benefit to promoting the development of science and technology innovation enterprises and realizing the transformation of the economy.

The pilot registration system in the science and technology board highlights the capital market entering a new phase. In fact, the registration system has been proposed for many years, and if the stock market did not fluctuate abnormally in 2015, blocking the introduction of the registration system, perhaps the registration system has already been implemented in the A-share market. Since small and medium-sized retail investors cannot directly participate, although the establishment of the science and technology board may divert the funds of the market, the registration system is the first to be piloted in the science and technology board, and its impact on the entire capital market will also be reduced.

But since the registration system began to be piloted in the science and technology board, it also objectively shows that the registration system is not far from the A-share market. Although there are problems in the length of the pilot period, the issue of the A-share IPO will eventually move toward the registration system, but it is also unavoidable. Therefore, once the registration system is successfully implemented in the science and technology board, the next goal will undoubtedly be fully rolled out in the Shanghai and Shenzhen markets. In the past, Guo Shuqing’s “IPO does not pass the test?” will become a reality.

The current IPO is subject to review by the China Securities Regulatory Commission, and the IPO of the IPO is 23 times higher than the high-speed line. In addition, there is “window guidance”. On the other hand, when the company is issued, it is actually controlled by the regulatory authorities, and the role played by the visible hand is enormous. After the implementation of the registration system, all of this will change. The approval authority for the issuance of new shares will be decentralized to the Shanghai and Shenzhen Stock Exchanges, and the responsibilities of the CSRC will be completely under the supervision. The issuance of new shares will also become more market-oriented. The success of the IPO will be closely related to whether investors use “foot” voting or hand voting.

Since the registration system focuses on the information disclosure of the issuer, as long as the information disclosed is true, accurate, timely and complete, it will be eligible for listing. The implementation of the registration system for new share issuance will inevitably lower the listing threshold of the company, and how to guarantee the quality of the listed company will be the key. Not only that, because the science and technology board provides a new exit channel for venture capital, whether the science and technology board will become a “cash board” like the GEM is also worthy of attention. In addition, since companies that have not yet made a profit and have an AB shareholding structure can be listed on the Science and Technology Board, how to protect the interests of investors is obviously a problem that the regulatory authorities must face.

But in any case, the establishment of the science and technology board pilot registration system is also a certain stage of the development of China's capital market, the positive significance behind it is not to be obliterated.