The Registration System Has Been Diluted. Maybe It'S A Good Thing.

The draft amendment to the securities law for two years will be reconsidered by the Standing Committee of the National People's Congress.

There are two sentences I am particularly interested in: first, the registration of leveraged buy-out needs to be studied; the two is that information management products will be penetrated.

Let's start with registration system.

Wu Xiaoling, vice chairman of the finance and Economic Commission of the NPC, introduced four aspects of the revision of the Securities Law: including improving the basic trading system such as securities issuance, trading, registration, settlement and delisting, developing multi-level capital markets, making stock financing more convenient for enterprises, enhancing the crackdown on illegal activities such as false information, price manipulation and insider trading, protecting investors better, relieving the interests of investors, seriously market discipline, and further defining market rules.

The draft amendment law explicitly proposed in 2015 that the stock issuance audit system should be abolished, and the registration system would be introduced before the end of the year.

The revision of the stock market crash in June was postponed.

However, since the registration system has been written into many decisions of the CPC Central Committee and the State Council, at the end of 2015, it was obliged to adopt the compromise method authorized by the NPC Standing Committee to authorize the State Council to implement the stock issue registration system.

It is explicitly implemented from March 1, 2016 and the implementation period is two years. The State Council shall make interim report to the Standing Committee of the National People's Congress.

Now the "mid-term" has passed, but the "interim report" is missing.

Wu Xiaoling said, "I am not sure whether the" registration system "can be written in the two reviewer and how to write it.

The new financial report is more straightforward: "according to the latest regulatory spirit of the SFC, there is no IPO in the new draft revision.

Related content. "

In this regard, I agree with both hands.

Two months ago, when Fang Xinghai, vice chairman of the securities and Futures Commission, said in the Davos forum, "IPO should not be in such a long queue", the media talked about "A shares are in the pition to registration system". "Now there has been no registration system." the author appealed to me: "three years without registration system, OK?" the reason is very simple. Only after the establishment of the basic trading system including the delisting system can we talk about registration system.

The registration system has been desalinated, and it is very good.

Let's talk about penetration.

The two heavyweight members of the NPC and CPPCC are talking about "penetrating regulation", focusing on leveraged buyout and information management products.

"Penetrating system" is the three word I invented.

What is penetrating? In a popular way, we can see it in the end.

Why did Long Wei media acquire Wanjia culture and was placed under investigation for "suspected violation of securities laws and regulations"? This case involves both highly leveraged buyout (60 million leveraging 3 billion) and penetration regulation.

Zhao Wei came out of 60 million, and he borrowed 1 billion 500 million yuan from Bank of Tibet Asset Management Co, and then moved to a branch of "A bank".

Financing is 1 billion 500 million yuan.

Who is the boss of Bank of Tibet? What assets are managed? And which bank is "A bank"? It has not penetrated.

Why can Bao and Hengda accept the investigation of the CIRC at the same time? Bao Yao's boss has been revoked, and the market has been banned for 10 years, while the relevant personnel of Hengda life insurance company (not big boss Xu Jiayin) has been banned for 3 to 5 years. That is because the system has organized all kinds of funds, including silver, certificate and insurance, and has been embedded in 9 capital management plans with a leverage ratio of 4.2 times.

This Yao boss used the way of fund organization to the extreme. Where did the money come from? No comment.

Why is Xiao Jianhua arrested tomorrow in the new year's Eve? It was only in 1997 that he entered the capital market, and the "tomorrow holding" was formally established in 1999. The public information registered capital was 500 million yuan. According to media reports, the total assets amounted to nearly trillion!

The key is two words: leverage and penetration.

Liu Shiyu said more directly: "you use money that is not suitable for the road.

Takeover is robbery, which is challenging the bottom line of national financial laws and regulations. "Wu Xiaoling's formulation is through" abnormal fluctuations in stock market in 2015 and some chaos in leveraged buyout in 2016 ".

Look at the stock market crash in 2015.

Openness, fairness and impartiality are the highest principles of the capital market.

Publicity is the premise, there is no sin under the sun, and the revised Securities Law is more penetrating to the market subject, so that the penetration regulation can really be implemented.

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