Is The IPO Registration System At A Critical Stage?

The executive meeting of the State Council, held in November 19th, pointed out that we should pay close attention to the reform of stock issuing registration system, cancel the continuous profit conditions of stock issuance, and reduce the threshold of small and micro enterprises and innovative enterprises.

The IPO trial system, which has been criticized for a long time, seems to be dead. Correspondingly, the IPO registration system appears to be coming into being.

China's stock market is facing a major historical turning point.

However, the controversy started.

The trial system is incompatible with the market rules.

There are three reasons why the IPO trial system has been criticized by everyone: first, the "barrier lake" formed by adults on the channel of listing, and the two is easy to form power corruption. The three is to open up a convenient door for counterfeiting enterprises.

For companies ready to go public, it is natural to see a long queue coming out of hundreds of enterprises.

Listing for many enterprises, in addition to increasing popularity and attracting talents, it is natural to meet the financing needs in the first place.

In the long wait, enterprises have to constantly modify a series of listed instruments in accordance with the requirements of the SFC, and wait until the approval of the listing documents is available.

In this way, those enterprises that are in the period of development and start-up are naturally unable to count on Enze of the stock market.

Whether it is gem or SME board, listed companies show more business in the right way, clear profit path.

However, the lack of creativity in technology and philosophy is quite common.

In our stock market, it is hard to imagine such a Facebook stock market miracle.

Those who are at IPO juncture really need to pay attention only to the faces of the members of the issuance Committee. As long as the reports are good enough to reach those entry requirements, and with enough patience and some necessary lobbying, the listing is just around the corner.

Now, it seems that whether it is the requirement of the profitability of enterprises or the consideration of the industry in the national industry policy, and so on, the entry conditions are crucial to guarantee the quality of listed companies, which reflects the good intentions of the departmental departments.

In practice, it is difficult for the issuing committee to replace the decision of the market. It is difficult to avoid the deception of collusion between enterprises and brokerages. Especially when the stock market goes into a low valley, opening or closing the door of IPO becomes a problem that the trial department is rather tangled up.

Opening the door of IPO, the weak stock market is bound to intensify; closing the door of IPO, the stock market has become a stagnant water.

In the year of 2013, the issuing department closed the door of IPO with great pressure. But the stock market did not boost the stock market in addition to the companies that wanted to go public.

The trial system has become a target of public criticism. It is a product of superstitious thinking of administrative examination and approval and prior supervision. It is obvious that such a system is difficult to integrate with market rules.

From the perspective of the development of capital market in developed countries such as the United States, it is inevitable that the trial system is going to end.

The chaos in China's stock market stems from the fact that information fraud can not be eradicated, that is to say, listed companies lack the sense of trust responsibility.

Obviously, the problem of information fraud can not be entirely responsible for the trial system.

Even if the trial system is strictly controlled, it is true that the listed companies are credible and credible in this link. However, if the enterprises enter the stock market, if they lack the supervision in the market, the stock market chaos will still be difficult to eradicate.

Just as the famous financial critic Ye Tan said, "only emphasizing the marketization of registration system can not change the nature of the unfairness of China's stock market, will not let the counterfeit disappear automatically, and will change the motive of counterfeiting; registration system will only lead to intensified competition in the issue stage, and push up the company's selling price to get the thickest profit".

If there is a lack of all-round supervision of listed companies, the IPO registration system will only bring greater stock market disaster.

When the listed companies and intermediaries form a solid interest alliance, in order to acquire the trust and expectations of the vast majority of investors, we can only see that more and more false information has been found for us, and we have put on a false coat of clothing for the initial financing.

We know that the capital market is a platform for the future to pay the bills. It does not have the nature and function of supporting the crisis. It has been invented by mankind to solve the current and expected uncertainties.

Therefore, it can only serve the future profitable companies and good ideas, rather than be trapped in financial difficulties, or help to expand the scale of traditional enterprises.

The authenticity of information is of vital importance in finding future businesses in the capital market.

At present, China's stock market has been depressed for a long time. Of course, there are large macroeconomic reasons. But for the stock market itself, the stock market has long overdrawn the trust of investors, which is the root of its failure.

The reason why investors are hard to trust is not entirely the trial system. The key lies in the fact that our stock market has long been cheating on counterfeiting and offenders.

It is the sign of IPO registration system.

Ye Tan believes that the establishment and exit mechanism of stock market is the guarantee for the implementation of IPO registration system.

The root of this statement is to enforce strict laws in the stock market.

Those companies that dare to fake and their intermediaries must be punished most severely.

Now, it seems that even in the trial system, if China can implement drastic punishments and exit mechanisms in a big way, China's stock market may be much better than it is now.

At the very least, those companies that only speculate in speculation will avoid the stock market.

In the final analysis, the foundation of the establishment and development of the stock market is the rule of law environment and the lack of a rule of law environment. Even if the IPO system is changed, the long-term development of the stock market will not help.

At present, there are many reasons why it is difficult to effectively improve the rule of law environment in stock market. But as financial commentator Su Pei Ke said, the role of the SFC in playing the role of "referee" and "athlete" in the stock market should be a very important reason.

From the issuance trial system to the registration system, the securities and Futures Commission of the SFC will split the relationship with the listed company from the source of the market.

On this basis, we can hope that the SFC will be able to take the hard and merciless cleanup when facing the "children" who are spoiling in the market in the future.

In view of this, today's reform of the IPO system and the introduction of IPO registration system are the first steps to ensure the "clear and bright" and healthy of the stock market.

Just after this step, we still have many steps to go.

Obviously, the implementation of IPO registration system requires judicial traceability, compensation mechanism, class action system and other systems, so that the exit mechanism can be truly implemented.

At the same time, the necessary severe laws and meticulous law enforcement departments are also the basis for ensuring the healthy and orderly development of the stock market after the advent of the "registration era".

Without these matching systems, even if the IPO registration system is launched, the effect will be difficult to play, or even more notorious.

What is most worrying is that once the lack of matching system guarantees, leading to the notorious IPO registration system, the IPO system is likely to be brought back to the trial system with very high sounding reasons.

We have gone through too many reforms.