On January 23, the Sixth Meeting of the Central Committee on Comprehensive Deepening Reform was held. The Committee considered and adopted the General Implementation Plan for the Establishment and Pilot Registration System in Shanghai Stock Exchange and the Implementation Opinions on the Establishment and Pilot Registration System in Shanghai Stock Exchange.
Setting up a new board and pilot registration system in Shanghai Stock Exchange is an important measure to implement innovation-driven development strategy and deepen capital market reform. The meeting proposed that the capital market should be more inclusive of technological innovation enterprises, and that efforts should be made to support key core technological innovation and improve the economic capacity of service entities. We should steadily pilot the registration system, comprehensively promote the reform of basic systems such as issuance, listing, information disclosure, trading and delisting, and establish and improve the stock issuance and listing system centered on information disclosure.
Yan Hong, Deputy Dean and professor of finance of Shanghai Senior Finance College, told the First Financial Journalist that the establishment of the Science Foundation in Shanghai will play a great role in promoting the construction of Shanghai International Financial Center. At the same time, we need to pilot the registration system, which is the universal system adopted by the financial markets of the global financial centres. After implementation, the degree of marketization of Chinas financial market will be markedly enhanced, which will have a strong role in promoting Shanghais financial market status and global role.
Zheng Yang, Director-General of Shanghai Financial Work Bureau, disclosed on the 21st that the establishment of a new board and registration system is progressing smoothly, and will seek advice on some rules and regulations in the near future.
Accelerated preparations for war by all parties
The formulation of Kechuang Ban began on November 5, 2018. In his keynote speech at the opening ceremony of the first China International Import Exposition, President Xi Jinping proposed that the Shanghai Stock Exchange (hereinafter referred to as the Shanghai Stock Exchange) should set up a scientific innovation board and pilot registration system to support the construction of Shanghai International Financial Center and Science and Technology Innovation Center, and constantly improve the capital market infrastructure system.
The announcement of the above news immediately triggered market attention. The SFC subsequently issued a question and answer to reporters, saying that the SFC Party Committee deeply recognized that the establishment of science and technology innovation board in the stock exchange is an important reform measure to implement the strategy of innovation-driven and technological power, promote high-quality development, support the construction of Shanghai International Financial Center and Science and Technology Innovation Center, and an important arrangement to improve the basic system of capital market, stimulate market vitality and protect the legitimate rights and interests of investors. u3002
The Securities Regulatory Commission (SFC) said that Kechuang board aims to complement the shortcomings of the capital market in serving technological innovation. It is an incremental reform of the capital market. It will make more appropriate differential arrangements in terms of profitability, ownership structure and so on, so as to enhance the inclusiveness and adaptability of innovative enterprises.
In the past two months, from the SFC, Shanghai Stock Exchange, sponsor agencies, to local government departments, industrial parks, to the first-class market venture-making organizations, innovative enterprises, have launched a night-and-night preparatory work from their respective fields, and the establishment of a scientific innovation board and pilot registration system has become the top priority of the securities market.
Fang Xinghai, vice chairman of the Securities Regulatory Commission, expressed his expectation for the introduction of the GEM during the annual meeting of the World Economic Forum in 2019. On January 12, he made it clear that the key words put forward by the Central Economic Working Conference for the GEM and registration system were landing as soon as possible.
Local governments are also actively preparing for war. On the one hand, they organize consulting and training, on the other hand, they comb the corporate treasury and actively submit it to the stock exchange. Chen Dan, general manager of Hubei High Investment Guiding Fund Management Co., Ltd., said in an interview with the First Financial Journalist that they also sorted out the backup enterprise treasury of science creation board in the government-guided fund investment projects, hoping to report to the exchange through the provincial Party committee and provincial government and other relevant channels, so as to achieve listing as soon as possible.
The approval of the implementation plan and the implementation opinions means that the implementation of Kechuang board and registration system is a step closer.
At present, the preparatory work of the SFC system and Shanghai units is also stepping up. Zheng Yang said that the establishment of the board and registration system is progressing smoothly and steadily, and will seek advice on some rules and systems in the near future. From the Shanghai level, we will actively participate in and fully cooperate with the SFC and the Shanghai Stock Exchange to promote the landing of scientific innovation boards, and form a coordinated mechanism and work plan for supporting promotion. We are working hard to screen high-quality enterprises and make a good reserve of pilot enterprises.
Firstly, we should create a good supporting environment, cooperate with the formulation of the plan, the perfection of the rules, the establishment of the supporting system and the development of the basic system, and actively support the propaganda, promotion and policy interpretation; secondly, we should cultivate and screen enterprises, organize joint research groups, focus on key industries, strengthen the centralized visits to key enterprises, and improve the efficiency of listing; Thirdly, we should strengthen the local service guarantee, standardize the listing standards and characteristics of Standard & Tech start-ups, and provide good service guarantee before and after the listing of enterprises.
Yan Bojin, Director of Shanghai Securities Regulatory Bureau, also said that the SFC had set up a scientific innovation board on the Shanghai Stock Exchange and pilot registration system as the main task of the system, and was gathering all the efforts of the whole system, and all departments were working together to promote it.
On the one hand, around supporting the construction of Shanghai International Financial Center, the SFC will further strengthen the working contact mechanism, give full play to the advantages of Shanghai Financial Center, and encourage local securities companies, fund institutions and other market players to strengthen their investment in ventures. On the other hand, we should prepare for the supervision of the listed companies in the process and afterwards, and lay a good foundation for the sound start of the company.
The spillover effect can be expected
Sci-Band will bring a series of spillover effects. Yan Hong told reporters that, on the one hand, the registration system is widely adopted in mature international financial markets, which means that the degree of marketization of Chinas financial market will be markedly improved once implemented; on the other hand, in the process of implementation of the registration system, a large number of financial service institutions, from securities firms, accountants, lawyers and other information providers, are needed to jump out. After the audit system, the market-oriented financial service system will be easier to gather in Shanghai.
Attracting more professional financial service institutions to Shanghai makes the financial service system in Shanghai more complete. Furthermore, there will be agglomeration effect, not only to build a scientific innovation board, but actually to form a strong financial services ecosystem. Yan Hong told reporters that it is expected that many of the enterprises will come from the Yangtze River Delta region, especially some emerging technology enterprises with core technology, such as Shanghai Zhangjiang, Hangzhou and other areas, will benefit from the radiation-driven effect of the science and technology board.
Zeng Yan, a researcher at Huatai Securities, believes that the company is carrying the historic mission of transforming A shares. Because of the different systems of access and transaction, the complementarity between the probability of KIB and the existing sector is greater than the mutual exclusion. With the creation of the company, it is not only a high-quality target, allowing investors to share the dividends of the growth of the times, but also expected to introduce benign competition to force the optimal allocation of social resources through the foot-to-foot vote of secondary market funds.
The technology innovation board is the channel of the real economy, which enables the technological innovation enterprises that support the transformation and upgrading of the economic structure to grow and grow with the support of funds. The production vitality brought by direct financing will further resonate with the stock market through profits.
It is noteworthy that under the registration system, the characteristics of the capital market system with information disclosure as the core will be more fully reflected, and there will be more stringent requirements for the timeliness and integrity of information disclosure. Therefore, we should supervise the market well, and at the same time let the market play its role of pricing and evaluation. Yan Hong believes that what administrative means can really solve is to strictly punish the subjects who violate the law and regulations, so that they dare not have any delusions. If the enterprise thinks the illegal cost is too low, there may be chaos.
In his view, the regulatory level from the beginning to formulate clear and feasible rules, and then strictly enforce, under the guidance of rules, let the market play a full role. This is not only very important for SCB, but also for the regulation of financial markets and financial services system.