Is The Registration System In A Hurry? Is A Shares Ready?

In March 16, 2000, China's stock issuing system began to change from the examination and approval system to the approval system.

After 1 years, China's stock market officially entered the approval system.

However, after more than ten years of development, the approval system is no longer suitable for the current market environment.

Therefore, the more advanced system than the approval system was officially published, that is, the stock issue registration system.

Generally speaking, under the approval system mode, it basically follows the principle of combining mandatory disclosure of information with compliance management, which emphasizes the rigour of auditing and strict screening of enterprises that are not in good quality.

According to the audit process of starting enterprises, from receiving materials to getting approval approvals at last, enterprises generally need to undergo nine procedures, namely, acceptance, pre disclosure, feedback meeting, meeting, pre disclosure, updating, trial meeting, trial meeting, sealing up and post filling, and finally get the approved approval.

Obviously, in the face of cumbersome procedures, it brings great trouble to most of the enterprises that meet the requirements.

Generally speaking, it takes more than half a year for an enterprise to apply from the application to the final issue.

What is more, when the enterprises enter the issuance trial ring, some of the conditions are not up to standard.

However, compared with the stock issuing registration system, the system of marketization is the highest.

In the actual operation, it only conducts a formal review of the registered documents, but does not make a substantial judgment on the continuing profitability, the issuer's investment value, and so on.

In other words, the threshold for admittance to listed companies has been lowered.

At present, it is a sensitive time for China's economic pformation.

During this period, the direct financing function of our country has also been highly valued by the management.

For a long time, the indirect financing function led by bank loans has already assumed most of the social responsibility.

However, the threshold for obtaining bank loans is very high and basically open to large state-owned enterprises or listed companies.

Therefore, for most small and medium-sized enterprises, it is impossible to obtain loans with lower interest rates from the indirect financing channel of bank loans.

Obviously, under this background, we will have a profound impact on the effective development of our real economy.

However, on the other hand,

The direct financing channels, which are mainly bonds, have been neglected for a long time. The overall scale of financing is obviously low.

At this point, the management intends to activate the direct financing function of the stock market by means of registration system, so as to nurture the real economy and accelerate the process of economic pformation in China.

In fact, since the beginning of this year, the rhythm of IPO issuance in China's stock market has accelerated significantly.

According to statistics, following the approval of the first application of 20 enterprises at the beginning of the year, the first application of 24 enterprises was approved again.

According to the size of the funds expected to freeze, the first batch of new shares issued during the year will freeze 1 trillion and 670 billion liquidity, and this will break through the 2 trillion pass.

It can be seen that the acceleration of IPO's pace is essentially pave the way for the full spread of registration system.

In addition, according to recent news, from June this year, the IPO audit will be handed over to the Shanghai and Shenzhen Stock Exchange, and the preparations will also focus on this point.

The acceleration of the registration system is indeed another great event in China's capital market.

But is the Chinese stock market ready when the registration system is coming?

Looking back on the market for nearly a month,

The trend of operation has changed significantly.

Among them, the recent decline of the stock market is closely related to the sudden acceleration of the IPO rhythm.

In fact, looking back at the first few rounds of A share price rise, it has been destroyed by a single policy.

Among them, the pace of IPO acceleration, market financing again

Expansion is the biggest lethal weapon in several rising markets.

Now, with the successive decentralization of new issue approvals, the speed of IPO has increased significantly, which has brought a direct impact on the market.

Take nearly two weeks as an example, since the adjustment of the A share market from the 3404 high point, the cumulative decline has reached 10%, and it has approached 3000 points.

Obviously, under the registration system mode, the market must adapt to the accelerated pace of IPO.

In the future, with the full spread of the registration system, there may be a phenomenon of bulk issuing and listing of new shares, which will bring great challenges to the market.

The quickening pace of IPO is a major feature of the future registration system.

At the same time, how to check the quality of the first round enterprises directly test the ability of the intermediaries to judge.

In view of this, under the registration system mode, on the one hand, the responsibilities of the intermediaries are obviously strengthened, and it will have the direct decision power of the first tier enterprises to issue and go public; on the other hand, it is the pfer of the audit authority's powers. With the rapid pfer of the supervision mode of the SFC, it will directly test the regulatory capability of the regulatory authorities in "in the matter" and "after the event".

To sum up, the author believes that registration system is a major feature of the mature market, and is also the highest degree of marketization of a distribution system.

However, when it is fully rolled out, it will bring an immeasurable impact on the market.

In this regard, before the registration system is promulgated, it is necessary not only to perfect the supplementary system of compulsory delisting, strict letter phi, but also to further strengthen the responsibility of intermediaries and perfect the supervision and punishment system of intermediaries.

Otherwise, in the face of the volume of new shares issued rhythm, A share market fear will not be able to withstand such a strong pressure.