Full text of speech by Li Chao of China Securities Regulatory Commission

category:Finance
 Full text of speech by Li Chao of China Securities Regulatory Commission


Good afternoon, everyone! Its a great pleasure to attend this Financial Street Forum. In his opening speech yesterday afternoon, vice premier Liu He made an important exposition on deepening the reform of Chinas financial industry and promoting the high-quality development of the capital market under the new dual cycle development pattern, and put forward clear requirements. Mr. man, chairman of the Securities Regulatory Commission, gave an important opinion on improving the basic system of the capital market. Next, I will talk about the registration system reform and the capital market infrastructure system construction based on the practice of the registration system reform of the science and technology innovation board and the growth enterprise market.

1u3001 The reform of the pilot registration system has achieved positive results

Second, gem as a stock market pilot registration system started well. The GEM market involves more than 800 stock listed companies and more than 46 million stock investors. The registration system reform fully considers the risk tolerance of stock investors, trading habits and the regulatory practices of stock listed companies, and makes differential arrangements in the system design. Since the implementation of the gem reform on August 24 this year, the concept of registration system has been well implemented, the enterprises under examination have been smoothly translated, the issuance and listing of new shares have been steadily promoted, the overall trading mechanism has been stable, and the arrangement of investors appropriateness has made a smooth transition, and all parties have responded positively. As of October 21, there were 38 listed companies under the gem registration system, with a total market value of more than 700 billion yuan.

In the past two years, the pilot registration system has been smooth and effective. First, a broad consensus on reform has been gradually formed. The new securities law has established the legal status of the registration system of stock issuance. All kinds of market entities actively support and adapt to the registration system reform, and the market vitality is constantly stimulated. Second, the practice of registration system has been recognized. In the reform, we respect the basic connotation of the registration system, draw lessons from international best practices, and design a series of system rules reflecting Chinese characteristics and development stage, which have withstood the test of market practice. Third, the registration system ecosystem is gradually constructed. The supporting rules surrounding the registration system have been constantly improved, the survival of the fittest mechanism has been smoother, the homing and responsibility of various subjects have been significantly enhanced, the legal protection has been more solid, and the concept of market value investment has been increasingly strengthened.

2u3001 On the reform of registration system

Third, we should balance the reform of financing and optimization of investment. The coordinated development of both sides of investment and financing is an important guarantee for the smooth progress of registration system reform. In the process of pilot registration system, we also strengthened the construction of investment side system and actively guided more medium and long-term funds into the market. For example, we should optimize the registration mechanism of public funds and vigorously develop equity funds; revise and issue QFII and rqfii regulatory rules to introduce more foreign medium and long-term funds; constantly optimize the mechanism of Shanghai Shenzhen Hong Kong stock connect, and promote the proportion of A-shares included in international major indexes, etc. Since 2019, the scale of equity public funds has exceeded 2 trillion yuan, and more and more small and medium-sized investors participate in the capital market through public funds. Shanghai and Shenzhen Stock connect net purchase more than 450 billion yuan, foreign investment in the A-share market continues to increase. With the strong support of relevant ministries and commissions, positive progress has been made in the market for medium and long-term funds such as bank financing and insurance funds.

Fourth, we should promote the equality of rights and responsibilities of all participants in the market. The basic connotation of the registration system is to deal with the relationship between the government and the market, and to clarify the relationship between the responsibilities and rights of the market participants. Under the registration system, the convenience of issuing and listing of enterprises has been significantly improved, and the intermediary agencies have better development opportunities. However, it also requires all market participants to be honest and self disciplined, return to their positions and fulfill their responsibilities. As the first person responsible for information disclosure, the issuer should adhere to the compliance operation, constantly improve the corporate governance, and enhance the consciousness of returning investors and fulfilling the public company obligations. Intermediary institutions should give full play to the role of gatekeepers in the capital market, adhere to professional ethics, and constantly improve the level of professional services. The exchange should hold the plate positioning, control the quality of audit, and continuously optimize the service of enterprises. Only when every link is responsible and fulfilled, can the registration system be both physical and mental.

3u3001 The main considerations of promoting the registration system reform in the next step

Through the pilot projects of the science and technology innovation board and the growth enterprise market, the conditions for implementing the registration system in the whole market have gradually come into being. In the next step, the CSRC will conscientiously implement the decision-making and deployment of the Party Central Committee and the State Council, firmly adhere to the direction of market-oriented and rule of law reform, learn from international best practices, maintain determination, step by step, and handle the registration system reform in a solid and stable manner.

First, we should make preparations for the reform of the whole market registration system. We will strengthen the evaluation of the operation of various rules and regulations of the pilot registration system on the science and technology innovation board and the growth enterprise market, and deeply summarize the pilot experience. On this basis, we should listen to the opinions of all parties, improve the framework of registration system in line with Chinas national conditions, and study and formulate the implementation plan of the whole market promotion registration system.

Third, promote the reform of basic system systematically. We should adhere to the reform of the registration system as the guide, make up for the shortcomings of the system, steadily promote the key system innovation in the aspects of issuance and underwriting, trading, continuous supervision, delisting, and investor protection, and make up for the shortcomings of the system, and accelerate the establishment of a more mature and stereotyped basic system.

The reform of registration system is a systematic project. The running in of system mechanism and the effective check and balance among market entities are a gradual process, which also needs to be adjusted and optimized step by step. It is hoped that all parties in the market will actively make suggestions and suggestions, look at the new situation and new problems objectively and rationally, and jointly promote the reform of registration system and the construction of capital market infrastructure system for a long time.

Finally, I wish this forum a complete success.

Thank you!