China Securities Regulatory Commission Discusses Registration System Reform
On January 19, the China Securities Regulatory Commission held a press conference to discuss the overall situation of the stock issuance registration system reform. The heads of relevant departments introduced the reform and responded to market hot topics such as delisting, shareholding reduction, and refinancing of listed companies.
Zhou Xiaozhou, the main person in charge of the Comprehensive Business Department of the China Securities Regulatory Commission, highlighted the importance of implementing the registration system and the need for strict punishments and strict laws to curb chaos in the market. The commission has taken the registration system reform as the leader in promoting a new round of comprehensive and deepening reforms in the capital market. The quality and efficiency of the capital market in serving the real economy and technological innovation have been continuously enhanced.
He emphasized that the implementation of the registration system requires strict punishments and strict laws to combat chaos. The China Securities Regulatory Commission adheres to “zero tolerance” to crack down on serious violations of laws and regulations such as fraudulent issuance and financial fraud.
Guo Ruiming, Director of the Listing Department of the China Securities Regulatory Commission, addressed the delisting situation of listed companies, noting the success of the delisting reform with a significant increase in face value delistings and major violations. The commission will continue to consolidate and deepen the normalized delisting mechanism to prevent “just retreat,” ensuring that companies and related parties are held accountable even if they are delisted.
Yan Bojin, Director of the Issuance Department of the China Securities Regulatory Commission, discussed the more prudent and rational implementation of refinancing by listed companies. He highlighted the decrease in the number of refinancing plans and acceptances, indicating that listed companies are more cautious in implementing refinancing.
Furthermore, Shen Bing, Director of the Institutional Department of the China Securities Regulatory Commission, responded to the effects of the implementation of the new margin trading regulations, indicating that the balance of securities lending has dropped significantly compared to the beginning of the new regulations.
Overall, the China Securities Regulatory Commission aims to promote the establishment of a more mature and stereotyped capital market basic institutional system and enhance the attractiveness of the capital market for the long-term development of investors’ return. The commission will continue to track and analyze the implementation effects of the registration system, optimize institutional arrangements, and promote the establishment of a more mature and stereotyped capital market basic institutional system.