(Original title: It has been 100 days since the release and implementation of the rules of the comprehensive registration system: All-round reforms to shape the survival of the fittest in the A-share market and the overall quality of listed companies is improving)
Our reporter Xing Meng
On May 28, it has been 100 days since the official release and implementation of the rules for the full implementation of the stock issuance registration system.
The 165 rules and regulations cover various aspects such as issuance conditions, registration procedures, sponsorship and underwriting, major asset restructuring, regulatory enforcement, investor protection, etc. The issuance conditions are diverse and inclusive, the review mechanism is transparent and efficient, and the supervision of the entire chain is unprecedented. Since the implementation of the comprehensive registration system rules, a number of “high-quality and high-priced” listed companies have emerged in A-shares, and a number of “long-term retreat” inferior companies have also been eliminated. “One entry and one exit” accelerates the metabolism of A shares and promotes listing. The quality of the company has improved.
Experts interviewed believe that improving the quality of listed companies is the greatest protection for investors. Under the comprehensive registration system, the overall quality of listed companies is improving. For investors, the increase in the number of high-quality bids that can be bid under the comprehensive registration system also puts forward higher requirements for investment decision-making capabilities.
Significantly improved audit efficiency
Hold on to the quality and not relax
After the implementation of the comprehensive registration system rules, a major change lies in the “separation of supervision and inspection”, and the rights and responsibilities are more clearly defined. Based on the structure of exchange review and CSRC registration, the efficiency and predictability of review and registration have been further improved.
Under the comprehensive registration system, the Shanghai and Shenzhen main boards are the top priority of the reform, high-quality blue-chip companies have emerged, and investment targets have become more abundant. According to data from Wind Information, since the implementation of the comprehensive registration system rules (from February 17 to May 28, the same below), a total of 31 new stocks on the main board have been listed, which is almost double the number of 16 in the same period last year.
Combined with the first batch of 10 new stocks registered on the main board, it took 49 days from translation acceptance to listing, and the review efficiency was significantly improved. The relevant person in charge of Dengkang Dental said that it took less than a month for Dengkang Dental from the acceptance of translation to the effective registration, and the efficiency of issuance and listing has been greatly improved.
“In the future, the listing channels of enterprises will be smoother, and the capital market will become more attractive to enterprises with strong research and development capabilities and high technology content, and better play the market financing function and resource allocation function.” Dong Zhongyun, chief economist of AVIC Securities, told the “Securities Daily” reporter express.
The registration system does not mean relaxing quality requirements. The first terminated IPO project under the main board registration system, Zhongtian Fluorosilicon, appeared on May 15.
In this regard, Yang Chao, a strategy analyst and team leader of the China Galaxy Research Institute, told the “Securities Daily” reporter: “This shows that the regulatory authorities perform their duties and ensure that the issuing companies meet the relevant requirements. Under the comprehensive registration system, the regulatory agencies need to ensure that the market Fairness, justice and transparency maintain investor confidence and promote the stable development of the market.”
Investors vote with their feet
Cases of face value delisting have increased significantly
Another major change under the comprehensive registration system is that investors have a prominent right to speak, and cases of face value delisting (that is, the closing price of stocks for 20 consecutive trading days below 1 yuan) have increased significantly.
According to data from Wind Information, since the implementation of the comprehensive registration system rules, a total of 6 A-share listed companies have been delisted, and 3 have been delisted at face value. In the whole of last year, there was only one delisting case of face value. What attracts more attention is that many stocks such as *ST Yikang, *ST Zhongtian, *ST Soute, *ST Blu-ray, *ST Huge, *ST Hongtu, and ST Meizhi have locked their face value and delisted. The number of delisted stocks will hit a record high.
According to Yang Chao’s analysis, delisted companies generally have problems such as long-term poor performance, weak sustainable operation capabilities, chaotic corporate governance, and even financial fraud and other information disclosure violations. Under the comprehensive registration system, more stringent requirements and supervision are imposed on listed companies, resulting in more delisted companies with face value.
Dong Zhongyun said that under the comprehensive registration system, the listing channels of enterprises are smooth, the value of shell companies is no longer, and the enterprises with poor performance, high operating risks and out-of-control internal governance are speeding up the liquidation.
It is worth noting that the first batch of delisted stocks on the Science and Technology Innovation Board will also appear. On April 21, the China Securities Regulatory Commission delivered the “Administrative Punishment Decision Letter” to *ST Zijing and *ST Zeda, affirming that the two companies had major illegal activities such as fraudulent issuance, which had touched the major illegal delisting standard. On the same day, the Shanghai Stock Exchange initiated the mandatory delisting process for major violations of the law, issued advance notices to the two companies of the proposed termination of stock listing, and will make a decision to terminate the listing within the specified time.
Xie Chenyang, deputy general manager and chief legal officer of Fii, said that science and technology innovation companies are mostly young companies with limited experience in internal control and compliance, and the risk of financial fraud cannot be underestimated. These two delisted companies sounded the alarm to other science and technology innovation board companies and intermediaries.
Unimpeded rights protection and relief channels
Strengthen investor protection
Investor protection is the cornerstone of the registration system reform. Under the registration system, the concept of “big insurance” has gradually become popular, the mechanism of administrative law enforcement, civil compensation, and criminal accountability has been more smoothly connected, the channels for investors’ rights protection and relief have become smoother, and the sense of gain of small and medium-sized investors has been further enhanced.
“Currently, my country’s securities market has established a protection mechanism involving regulatory agencies, listed companies, intermediaries, and investors.” Dong Zhongyun said.
Advance compensation and special representative litigation mechanisms can enable investors to protect their rights more efficiently. On May 26, the Insurance Fund Company announced that China Securities and other intermediary agencies jointly invested in the establishment of a special fund for advance compensation of 1 billion yuan in the Amethyst storage incident to compensate investors who suffered losses. In addition, the litigation materials of *ST Zeda ordinary representative have been accepted, and the China Securities Small and Medium Investor Service Center will apply to participate in the case and convert the special representative litigation when the conditions are met.
“The advance compensation and the special representative litigation mechanism are to investigate the violations of listed companies and their related personnel through judicial channels, which will help protect the interests of investors.” losses, and enhance investors’ sense of security. Through the special representative litigation mechanism, the problem of high cost and difficulty of individual rights protection can be solved, the ability of investors to protect rights can be strengthened, and the crackdown on infringements can be strengthened.
Overall, under the comprehensive registration system, the overall quality of listed companies is improving. Wang Jianjun, vice chairman of the China Securities Regulatory Commission, said at the annual meeting (council) of the China Association of Listed Companies and the 2023 China Listed Companies Summit on May 27 that improving the quality of listed companies is the best protection for investors.
Dong Zhongyun said that improving the quality of listed companies is the first priority to protect the legitimate rights and interests of investors. To improve the quality of listed companies, it is necessary to standardize company operations, improve corporate governance, timely and accurately disclose information, put investors’ legitimate rights and interests in an important position, and allow investors to truly share in corporate development dividends.
Xie Chenyang believes that investors themselves also need to improve their investment judgment ability and ability to bear investment risks, and realize self-protection by strengthening analysis and research.
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