Gem registration system reform is on the way, institutions expect new breakthroughs in the system

category:Finance
 Gem registration system reform is on the way, institutions expect new breakthroughs in the system


Soft technology enterprises detour

We have invested enterprises that are also scientific and technological enterprises, but they are not consistent with the industrial direction stipulated by the scientific and technological innovation board. They are still the early soft technology industry internet type. It is not necessary to force the label of hard technology. We are looking forward to the detailed rules of the gem reform. The head of a venture capital organization in Central China told reporters.

According to wind data, as of November 14, there were 197 enterprises queuing for examination and Application on the growth enterprise market, including 164 enterprises that had been pre disclosed and 33 enterprises that had been supervised for filing and registration. Among these 164 enterprises, 59 have updated the pre disclosure, 14 have accepted it, and 91 are in the feedback state.

The market value of GEM has increased nearly 40 times in the past decade, supporting a large number of new economy enterprises to go public and become stronger. And the new reform plays an important role in guiding and leveraging a large number of social funds to continue to flow to the small and medium-sized technological innovation micro enterprises that are in urgent need of financial support and market incubation.

There are more types of enterprises applying for gem, which come from 47 industries of CSRC, including accommodation industry, agricultural and sideline food processing industry, entertainment industry, press and publication industry, etc. With the support of the six industries of the standard science and technology innovation board, the industry inclusiveness of the gem reform has become one of the focuses of the market.

Yuan Hongwei, a partner of Songhe capital, said in an interview that one of the advantages of the gem pilot registration system is that it covers a wider range of industries. For some soft technologies, the GEM may become the first choice because it does not belong to the six major industries but is also an innovative company.

Wei Zhe, chairman of Jiayu fund, also said that removing the word science and technology does not mean that companies with high technology content should not be allowed to go to the growth enterprise market without science and technology content, and that companies with science and technology content can also go to the growth enterprise market without science and technology content. In his opinion, there is no need to force enterprises to attach science and technology labels and added science and technology elements in order to go to the science and technology innovation board Packing out the scientific and technological content will mislead the market and go against the name of scientific and technological innovation.

From the perspective of the whole world, it cant be said that NASDAQ is the US version of science and technology innovation board. NASDAQ also has low-tech companies listed on the stock exchange. Alibabas listing on the New York Stock Exchange shows that companies with high-tech content can also be listed on the New York Stock Exchange.

In weizhes view, both the science and technology innovation board and the growth enterprise board focus on three levels of reform: first, the liberalization of profit requirements; second, the relative time of listing can be determined; third, the marketization of issuance pricing. For venture capital institutions, it is more meaningful to relax the profit requirement, which makes many VC (venture capital) / PE (private equity investment) dare to see the company whose profit does not necessarily reach the listing standard within its fund life.

New breakthrough of institution expectation system

For the early angel investment, we hope that the gem reform can make a breakthrough in terms of exit provisions. The head of a VC firm in Shenzhen told reporters, the existing rules for reducing holdings on the main board and the science and technology innovation board are still relatively strict for venture capital firms. Angel investment has been locked for seven years before it goes public. Even after it goes public, it will be locked for at least one year. Reducing holdings will be divided into many times, especially at present, the Market Fundraising environment is not very good, and the smooth exit process is conducive to the withdrawal of the whole fund-raising investment management The flow. I hope to learn from the experience of overseas market registration system. The lock-in period is only half a year.

In contrast, the proportion of lifting the ban is similar when science and technology innovation board and growth enterprise board exit, and the restrictions on reducing their holdings are more stringent. Compared with the U.S. 144 act and Hong Kong Growth Enterprise Board rules, the rules on reducing their holdings are more stringent in terms of shareholder lock-in and reduction.

However, Yuan Hongwei said that when the invested company goes public, it depends on its own growth ability to determine which stage of development it is in. If the invested company will not go public for a long time, it will sell it. When is the right time to exit, it still depends on its own growth ability. She concluded that after ten years of development, gem has accumulated a large amount. The implementation of registration system will make it more accurate and professional in market pricing ability and cognition of listed enterprises, and the investment maturity and attention of the board will be higher. In addition, if the investment threshold of gem still maintains the original standard, after the direct pilot registration system, it is equivalent to making changes in the relatively mature market In addition, it will increase the activity of investment, increase the frequency of market trading, and increase the space for institutional investors to participate. Zhang Jun, vice president of Shenzhen Corporate Governance Research Association and senior partner of Beijing Longan (Shenzhen) law firm, said that he had the following expectations for the gem reform and pilot registration system: first, we should do a good job in the construction of basic system and supporting reform, strengthen and standardize the requirements of information disclosure, and increase the responsibilities of intermediaries; second, we need to further improve the quality of listed companies, It is hoped that the gem pilot registration system can make a breakthrough in the access threshold (listing audit standard) of listed enterprises, and attract more high-quality enterprises with promising development to list on the gem through the registration system; thirdly, it is necessary to increase the punishment for securities violations, especially information disclosure violations, and increase the illegal cost of the capital market, from the administrative, civil and criminal aspects Punishment for illegal acts. Source: responsible editor of Securities Times: Yang bin_nf4368

However, Yuan Hongwei said that when the invested company goes public, it depends on its own growth ability to determine which stage of development it is in. If the invested company will not go public for a long time, it will sell it. When is the right time to exit, it still depends on its own growth ability. She concluded that after ten years of development, gem has accumulated a large amount. The implementation of registration system will make it more accurate and professional in market pricing ability and cognition of listed enterprises, and the investment maturity and attention of the board will be higher. In addition, if the investment threshold of gem still maintains the original standard, after the direct pilot registration system, it is equivalent to making changes in the relatively mature market In addition, it will increase the activity of investment, increase the frequency of market trading, and increase the space for institutional investors to participate.

Zhang Jun, vice president of Shenzhen Corporate Governance Research Association and senior partner of Beijing Longan (Shenzhen) law firm, said that he had the following expectations for the gem reform and pilot registration system: first, we should do a good job in the construction of basic system and supporting reform, strengthen and standardize the requirements of information disclosure, and increase the responsibilities of intermediaries; second, we need to further improve the quality of listed companies, It is hoped that the gem pilot registration system can make a breakthrough in the access threshold (listing audit standard) of listed enterprises, and attract more high-quality enterprises with promising development to list on the gem through the registration system; thirdly, it is necessary to increase the punishment for securities violations, especially information disclosure violations, and increase the illegal cost of the capital market, from the administrative, civil and criminal aspects Punishment for illegal acts.