The Biggest Drawback Of China'S Finance Is Leaving Behind A Broken Shoe That No One Can Pick Up.

The two sessions are coming soon. The new registration system in the capital market has once again attracted the attention of the market. The media is constantly blowing the wind, and experts are constantly demonstrating the arguments. But the official voice is a bit light. According to media reports, the amendment of the securities law will not involve the contents of the registration system, and the prime minister's report has not mentioned the registration system reform.

In order to win the support of market investors, first of all, we must identify the orientation and find the right direction, rather than reform for the sake of reform, so that we can win the support of market investors. Therefore, I want to ask why China should implement the registration system and how to implement the registration system. Is the gem going to be delayed? Can the registration system really curb the speculation? Is the registration system suitable for China's national conditions? How to supervise the registration system? How to arrange the delisting system? How to protect the interests of investors?

By the end of 2015, the Standing Committee of the National People's Congress authorized the State Council to issue stock issue.

The authorization period is two years and shall take effect from March 1, 2016.

But after more than 1 years, the amendment of registration system in the securities law is still a mystery. The prime minister's report also made no mention of the registration system. IPO registration reform seems to be stagnant again, which makes some experts very unhappy and complaining.

I recall that the Chinese stock market introduced the registration system for about 10 years. During the period, the controversy surrounding the registration system also appeared in the pro factions and the opposition, and even in the middle. From the earliest designers of the registration system, although there were many reasons, the main purpose was to curb corruption, increase IPO and curb excessive speculation. Although some of the ideas were reasonable, capital market ignored the fact that excessive market reform had the suspicion of market fundamentalism.

These problems are not only academic issues, but also not only policy issues, but also stock market positioning and investors' vital interests. If the capital market supports the maximization of the real economy, the implementation of registration system is not appropriate. This requires more argumentation, because the premise of the US registration system is to restrict the entry of shares into the market, which is the best protection for investors' interests, and also involves the interests of investors.

President Liu Shiyu said during the 15 years' two sessions, "registration system reform needs a fairly sound legal environment."

The attitude of registration system is also a normal extension of chairman Liu Shiyu's correct view. First, the US registration system is based on the best protection of investors' interests in reducing the number of shares entering the market. Therefore, the policy makers impose strict supervision measures on the investors, so it is easy to maintain the listing status and the cost of listing is not high enough, so that many enterprises are not listed. This market registration system will not cause the IPO to break out for a short time, and the market will not cause short-term pressure. In contrast to China, the registration system is designed to open the supply valve of new shares, while China is in the period of economic pformation and financial risk. The capital market bears unprecedented financing responsibilities, and the regulators show more tolerance to the illegal activities of the financiers. It is pointed out clearly that "no single soldier can go straight ahead". Is there a legal condition and market environment for China's stock market to implement the registration system?

Listing is difficult to maintain the listing status is very easy, coupled with the characteristics of the stock market system overnight, many companies regard listing as an honor, an ultimate goal of struggle. Once the valve is opened, IPO will be completely out of control. This is not the author's random talk. Instead, it is the IPO barrier lake hanging on the head of investors. As of March 2nd, 679 enterprises were first accepted, of which 32 had been passed, and 647 had not been.

There were 610 enterprises that were normally awaiting trial enterprises, and 37 enterprises were discontinued. The dammed lake was accumulated in the IPO normalization of the SFC. In fact, it was accumulated under the speed expansion. This indicates that the market IPO pressure is too big to predict.

Secondly, the implementation of the US registration system is based on the normalization and legalization of the delisting system, and the three stages of passive delisting, merger and withdrawal and active delisting. Over the past ten years, the number of delisting is far more than the number of listed companies, which can effectively ensure that the market is wide open, and there will be no explosive growth in the stock market in the short run.

There are only 13 families in a year, only two last year, and the other two have been in a lawsuit with the SFC since the delisting. The absence of the delisting system is equal to letting the capital market become a soldier who can't eat. But the capital market is not a mere soldier, but it can't be eaten only. The implementation of registration system will lead to intestinal obstruction and death. Another point of view is that the market will face the problem of capacity expansion in the short term, and the new market funds may not be able to keep up with the needs of the new market value, resulting in a sharp drop in the market. In the history of China's stock market, there are several times in China's stock market, because of the registration system rumors and even heavy losses, and the reform is not shock therapy but gradual progress. It is still missing, only rigid withdrawal, and the ratio is very low.

　　三是打开上市阀门，降低上市门槛，没有严刑峻法的护航意味着上市公司的质量更加令人忧虑，严刑峻法的护航来自于两个方面一个是证券法的修改加大处罚依据，另一个是执法的理念，证券法的修改很容易，但执法理念的改变很难，目前市场一团乱象，不在于证券法的不足，更在于主动执法理念的缺失和执法不到位处罚不到位，像新的退市制度已经颁布很多年，但退市制度依然只是一个虚幻，对违规行为处罚自由裁量权很大导致惩罚不到位，据媒体报道35家财务造假上市公司中，证监会对其中32家公司罚款均不超过60万元，除开2家主要责任在评估机构和会计事务所的上市公司，仅海联迅一家公司受到“重罚”，被罚882万元，实控人被罚1203万元，笔者关注到没有一家财务造假公司被勒令退市。

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Four, the protection mechanism of investors' legitimate interests is still missing. What is more critical is the absence of class action mechanism, which greatly increases the cost of safeguarding investors' rights. The prevalence of local protectionism makes investors' rights litigation full of variables and hardships. Capital market urgently needs to establish a specialized financial court to try capital market infringement cases, one is more professional, and the two can avoid the interference of local government protectionism.

The five is that investors do not know enough about the registration system reform. There is a vote by foot. A reform is not successful. It depends on the recognition of the market rather than the pure theoretical research of some academic experts. They often do not worry about the actual situation of the market. They only know that the move to the US market is not universally recognized by investors, so the reform is easy to fail. Therefore, the management needs to do more communication with the market investors for the registration reform and try to get investors to approve the registration system and reduce the market's resistance.

To push forward the registration system, we need to clarify several problems. First, the implementation of registration system can change the bad habit of stir frying the small stir fry shells, and the market speculation is continuous. It does not depend on the number of stock companies in the market. It does not lie in the number of IPO, but in the supervision. If the supervision is not in place and the law enforcement is not in place, the illegal offenders will have no fear. Then there are thousands of Companies in the market. Every day, IPO will continue to be selected. Speculation funds will still be able to choose the battles to break through, and choose a certain family or a few stocks for speculation or even speculation. Like the recent Zhangjiagang bank and Jiangyin bank's stir up, it is a classic example of the venture capital. A system reform is neither in line with China's reality nor in the recognition of investors.

The two new bank stocks did not increase the entire banking sector, but did not lead to a marked rise in the entire market index. It was only a partial speculation and partial irrational inflation. The old people's Bank of China, however, had a lower valuation but was constantly adjusting to new lows. The reason why the speculation was that the short-term profit was huge and the market legal risk was almost not. Since the hype was not risky, there could be a huge profit and no speculation. Therefore, the registration reform was overweight. IPO, to curb the difference between the speculation and speculation, is the only way to control the speculation.

The reform means to completely open the supply of new shares, let the market adjust the IPO rhythm and IPO price, while the normal marketing of the market is based on the characteristics of the market operation and the needs of the financial market. Under the supervision of the government, a moderate increase of IPO is different. In the current situation of China, the market does not form a IPO self-regulation mechanism. The listed companies will seize the opportunity to issue new shares, and the market will not be rejected by the market. This is totally different from that of the listed companies in the weak market environment of the United States. Besides, the lack of a reasonable IPO pricing mechanism for Chinese institutions or big funds is also a matter of confusion. Secondly, the relationship between the normalization of new shares and the registration system reform, registration system.

Germany implemented the audit system, nor did anyone accuse the German stock market of not supporting the real economy, which is worse than the US registration system. In China, IPO is always questioned by investors as the money market. In fact, it is the IPO speeding issue. The US stock market has only had more than 3600 companies after hundreds of years of development, while China has only 3200 companies in its development for more than 30 years. According to the current IPO speed and the slower 17 years, China will become the world's first capital market in 18 years. Adams said: "no doubt, lawless taxation, whether in peacetime or wartime, whether it is collecting half or 20% of the national wealth, provides a legitimate reason for the resistance of the people." three, is it necessary for the stock market to support the real economy? Do we need IPO registration reform? Is the auditing system impossible? I'm afraid it's not the same thing.

Another angle.

IPO, a lawless capital market, overemphasizes the financing function of the capital market, and ignores the investment function of the capital market for a long time.

Investment and financing win-win is the basic foothold of the capital market.

Therefore, the support of the capital market to the real economy does not mean that IPO has no control but to make investors profitable. If investors do not have the interest, they can expect to choose to abandon the capital market, and capital always goes around the stock market. The capital market supports the real economy and raises the proportion of equity financing. Therefore, to support the real economy by registration reform is not a win-win situation, and may even cause unnecessary financial risks.

Liu Shiyu said that registration system should neither be idealized nor mystifying, but must understand the system.

"Stable expectations, market proven practices must be firmly done and not to be torn up. The core is to do well in the quality review of listed companies issuing shares."

This is reasonable. I highly agree with that.

Investing in the stock market is to invest in the future and invest in a kind of expectation. Therefore, at this stage, it is not appropriate to mess up the registration system reform and disrupt the expectations of investors. The most urgent task is to do the work of issuing new shares on a down-to-earth basis, improve the system and ensure the quality of listed companies from the source.

The capital market system has been perfected, supervision has been strengthened, market speculation has been reduced, investors have become more mature, and the unreasonable valuation level has been corrected. The registration system reform has come to an end. At present, the registration system reform is encouraging. The registration system reform is premature, and the market will be ruined. If the investors are driven away, they will not try.

The draft "13th Five-Year plan" proposed that the government should create conditions to implement the stock issuing registration system.

In order to create conditions, there must always be a process that is unlikely to be accomplished overnight. In this process, the SFC and all sides should fully communicate with each other and build consensus. In particular, we should reach consensus with investors and get the recognition of investors instead of listening to some experts' opinions unilaterally, especially the opinions of academics. They lack market research to do pure learning. They often apply the same thing to the US, which does not necessarily reflect the current situation of China's capital market, nor can they reflect the aspirations and aspirations of investors.

This amendment does not involve registration system. The prime minister's report does not involve registration system. I believe that it is a pragmatic move to take care of investors' demands from the reality of China's capital market. The capital market supports the real economy rather than the registration system and approval system. Under the approval system, normalization of IPO can also support the real economy as much as possible. Registration system, if investors oppose voting with feet, will not necessarily maximize the support of the real economy. Regardless of the approval system registration system, as long as it supports the real economy and allows investors to generally accept it is a good IPO way, why should we stick to the form?

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