It has been one year since the establishment of the Beijing Stock Exchange. In the past year, the Beijing Stock Exchange has achieved remarkable demonstration cluster effects, and has become a gathering place for specialized, special and new “little giants”, providing capital support for the innovation and development of many science and technology enterprises. On September 4, the special forum on “Capital Markets Helping the Construction of International Science and Technology Innovation Centers” was officially held at the 2022 Service Trade Fair. Zhou Guihua, Secretary of the Party Committee and Chairman of the National Equities Exchange and Quotations, and Chairman of the Beijing Stock Exchange, delivered a keynote speech at the meeting. It discusses the construction of the Beijing Stock Exchange in detail, including the timely implementation of the Beijing Stock Exchange 50 Index, guiding market players to develop supporting fund products, exploring mixed market making and margin financing and securities lending transactions, etc. This is also his first public speech after taking office on June 7 this year. .
Timely launch of the North China 50 Index
Zhou Guihua pointed out at the meeting that the main appeal of investors coming to the capital market is trading, and the Beijing Stock Exchange will aim to enhance the convenience of trading, take multiple measures, and constantly explore and improve diversified trading mechanisms that meet market characteristics. Stock 50 Index and guide market players to develop supporting fund products to facilitate investors to make portfolio investments.
It is worth mentioning that on the evening of September 2, the Beijing Stock Exchange released the “Detailed Rules for the Management of Securities Indexes of the Beijing Stock Exchange” and the “Beijing Stock Exchange 50 Component Index Compilation Plan”, and the Beijing Stock Exchange 50 Index was launched. index.
According to the introduction of the Beijing Stock Exchange, the Beijing Stock Exchange 50 Index is composed of 50 securities of the most representative listed companies in the Beijing Stock Exchange with large scale and good liquidity, in order to comprehensively reflect the overall performance of the market. The BIT 50 Index takes April 29, 2022 as the base date, and the base point is 1000 points. According to the arrangement, the first network-wide test of the BIT 50 Index will be held on September 17, and the second network-wide test will be held on September 24.
Zhou Yunnan, a senior commentator on the New Third Board and the founder of Beijing Nanshan Investment, said that the launch of the Beijing Stock Exchange 50 Index provides the market with a barometer of the Beijing Stock Exchange’s secondary market, and also provides the market with a growth reference indicator for the Beijing Stock Exchange. resolution. In addition, the cost of information collection for investors of the Beijing Stock Exchange is reduced, making it easier for investors to understand and grasp the real-time dynamics and future trends of the overall sector of the Beijing Stock Exchange.
Explore margin trading
Exploring margin financing and securities lending transactions was also the focus that Zhou Guihua mentioned at the meeting.
Zhou Guihua said that it is necessary to optimize the information disclosure system of the New Third Board and the Beijing Stock Exchange, so that investors can see and understand clearly, improve the adaptability of the trading mechanism, explore mixed market making and margin financing and securities lending transactions, and improve the efficiency of market transactions.
On the evening of September 2, the Beijing Stock Exchange issued a document stating that in order to enrich investors’ trading strategies, meet the diversified trading needs of investors, promote two-way price discovery in the Beijing Stock Exchange market and improve market liquidity, on the basis of extensive research and in-depth research, The “Detailed Rules for Margin Trading and Securities Lending of the Beijing Stock Exchange” (hereinafter referred to as the “Detailed Rules for Margin Lending and Securities Lending”) have been formulated, and public comments will be solicited from the market from September 2, 2022.
Wang Chikun, an independent economist, said that the launch of the margin financing and securities lending system is an important measure for the Beijing Stock Exchange to continue to promote the construction of the market system. Margin financing and securities lending is an important basic system in the securities market, and it is also a relatively mature transaction method in the international securities market. “Since my country’s capital market has gradually implemented margin financing and securities lending in 2010, the business model has gradually matured, the regulatory system has been gradually improved, and investors’ understanding and application of the credit trading mechanism has continued to deepen, providing investors with diversified trading strategies and risk management. It has provided effective support and enhanced the vitality and resilience of the securities market.” Wang Chikun said.
Zhou Yunnan also said that margin financing and securities lending transactions can effectively improve the liquidity of the secondary market of the Beijing Stock Exchange and increase market activity; it will help improve the price discovery function of the secondary market and promote the stability of the secondary market.
The “Detailed Rules for Margin Lending and Securities Lending” points out that the margin ratio of investors for financing purchases shall not be less than 100%, and the margin ratio for securities lending and selling shall not be lower than 50%. Stocks of listed companies, securities investment funds, bonds, money market funds, cash management products of securities companies and other securities recognized by the Exchange can be used as margins.
Guide public funds to increase investment
Zhou Guihua also mentioned that it is necessary to enrich the number and structure of investors, guide public funds, private equity institutions, and QFIIs to increase investment, expand investment channels such as social security funds and insurance funds, and provide convenience for various types of funds to enter the market.
Zhou Guihua said that without investors, there would be no market. The capital market is a market that both investment and financing parties participate in. There are only sellers and no buyers, and transactions are impossible, and exchanges have become water without sources and trees without roots.
With the goal of promoting the balance of investment and financing, the Beijing Stock Exchange will strengthen the construction of the investment side, vigorously promote the entry of various funds into the market, be guided by the needs of investors, improve relevant institutional arrangements, smooth investment and exit channels, effectively protect the legitimate rights and interests of investors, strengthen Investor sense of gain.
According to Zhou Guihua, at present, the Beijing Stock Exchange has initially formed a benign market ecology, with active participation of various market players, more than 5 million qualified investors, social security funds, insurance funds, QFII, etc. have entered the market, and more than 500 public funds have accelerated. layout. Intermediaries have increased their investment, forming a group of characteristic securities firms that are deeply engaged in capital market services for SMEs.
In addition, the motivation of small and medium-sized enterprises to list on the market continues to increase. At present, there are more than 400 companies under review and auxiliary enterprises in the Beijing Stock Exchange; there are nearly 1,700 companies in the innovation layer as the “reserve army” of the Beijing Stock Exchange, an increase of 1/2 compared with the establishment of the Beijing Stock Exchange. 3. Over the past year, more than 300 companies have applied for listing, an increase of 2 times year-on-year, forming a positive and positive market atmosphere.
According to statistics, as of September 4, there were 110 listed companies on the Beijing Stock Exchange, with a total of 23.5 billion yuan in public offering financing, with an average of 210 million yuan per company.
Establish an internal direct audit mechanism
Zhou Guihua also responded to the question from the market that “listing first and then listing will affect the efficiency of listing”, saying that an internal direct audit mechanism will be established to further improve the audit efficiency of the entire chain of listing and listing and the accuracy of regulatory services.
Zhou Guihua said that by leveraging the advantages of the integrated development and coordinated supervision of the Beijing Stock Exchange and the New Third Board, we will create an efficient, transparent and predictable issuance and listing path for small and medium-sized enterprises, and support more high-quality innovative small and medium-sized enterprises to enter the capital market as soon as possible. road”.
At present, listing on the Beijing Stock Exchange is different from traditional IPOs. Before listing, companies need to be listed on the New Third Board for one year. There is a view that this affects the efficiency of the company’s listing. However, for small and medium-sized enterprises, rushing to apply for listing under the condition of insufficient preparation and solid foundation, the success rate is not high, and even if it is listed, it may affect the subsequent development. By listing first, the company is equivalent to accepting the guidance of the regulatory authorities in advance, and can make full use of the approach-based supervision and personal services during the listing period, communicate and solve problems in the front, lay a solid foundation, and the listing will become a matter of course. matter.
In order to implement and give full play to the advantages of this system, the Beijing Stock Exchange will explore the implementation of “process reengineering” that integrates listing review, daily supervision, and company regulation cultivation, establish an internal direct review mechanism, and further improve the entire chain review of listing and listing. Efficiency and the accuracy of regulatory services make the listing path clearer and the time expectation clearer.
Strengthen the protection of investors’ rights and interests
Finally, Zhou Guihua also focused on strengthening the protection of investors’ rights and interests.
Zhou Guihua pointed out that strengthening the protection of investors’ rights and interests is not only an important manifestation of adhering to the people’s nature of the capital market, but also an inevitable requirement for creating a good capital market ecology. The Beijing Stock Exchange will implement the “zero tolerance” requirements, continue to strengthen self-discipline management, consolidate the “gatekeeper” responsibilities of intermediaries, strengthen internal and external linkages, form a synergy of supervision, and resolutely crack down on financial fraud, market manipulation, insider trading and other violations of laws and regulations. conduct, maintain an open, fair and just market order, and enhance investor trust and confidence.
At the same time, listed companies should fully realize that the support and recognition of investors is the foundation of their ability to stand in the market, and must always firmly establish the awareness of respecting, treating and respecting investors, and adhere to the concept of symbiosis, sharing and win-win. Not only should we be responsible for investors, tell the truth and do real accounts, give investors a real and transparent listed company, protect investors’ right to know and participate, but also make profits for investors and establish a friendly corporate image. Lay a reputation for sustainable development in the capital market.
Zhou Guihua also gave a specific example at the meeting, saying that the pricing of public offerings should not only consider the immediate future, blindly pursue high valuations, make a one-shot deal, and take into account the interests of investors before and after listing; Through cash dividends, share repurchase and other methods, we will actively reward investors and share corporate development dividends with investors.
In addition, Zhou Guihua mentioned that the major shareholders, directors, supervisors and senior executives of listed companies should effectively change their concepts, practice the entrepreneurial spirit, establish the concept of being responsible for the company and the society, promote the transformation of traditional family businesses into modern public companies, and strive to improve the awareness of norms , continuously improve the level of corporate governance, actively fulfill corporate social responsibility, and consolidate the foundation for the stable and long-term development of the enterprise. Don’t try your own way to engage in financial fraud, encroach on the interests of listed companies and minority shareholders, engage in insider trading and market manipulation, which will negatively affect the development of the company and individuals.
(Editor in charge: Wang Qingyu)
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