Xinhua News Agency, Beijing, August 24th, title: What changes will the “incremental + stock” reform bring about the first anniversary of the registration system for the ChiNext?
Xinhua News Agency reporters Yao Junfang and Liu Hui
On August 24, 2020, as the bell for the first batch of companies to be listed under the registration system of the ChiNext rang on the Shenzhen Stock Exchange, the ChiNext officially entered the era of registration.
At the end of the first anniversary, how about the “transcript” of the pilot registration system for the ChiNext? What changes have taken place in the market ecology? The market is concerned about and looking forward to the growth of the ChiNext to better serve the real economy’s innovation efficiency through reforms, and to lay a solid foundation for the implementation of the registration system across the market.
The registration system injects new momentum into the GEM
After more than ten years of development, my country’s ChiNext market has continued to grow-the number of listed companies has exceeded 1,000, with a total market value of more than 13 trillion yuan (as of August 23), ranking second in the world‘s major ChiNext market.
Persisting in serving the “three innovations” and “four new”, the Growth Enterprise Market has gathered nine strategic emerging industries, and high-tech enterprises accounted for more than 90%…
On August 24 last year, the GEM reform and pilot registration system were successfully implemented, and the reform of the capital market registration system took a solid step forward.
“The GEM reform will simultaneously implement the registration system for initial issuance, refinancing, mergers and acquisitions and reorganization, and take the registration system as the main line to coordinate and improve various capital market foundations such as issuance and listing, information disclosure, investor suitability management, transactions, and delisting. The system has laid the foundation for the implementation of the registration system in the entire market.” said the person in charge of the Shenzhen Stock Exchange.
Newly listed companies on the GEM under the registration system release “new vitality”-As of August 20, there were 182 newly listed companies under the registration system, accounting for 18%; the total market value of newly listed companies accounted for 14% of the overall market value of the sector; new The average operating income and net profit of listed companies in 2020 are better than the average level of the sector.
“More diversified and inclusive listing conditions” is one of the highlights of the registration system reform. Taking into account factors such as income, net profit, and expected market value, multiple sets of listing standards have been set, and the requirement of “no unrecovered losses” has been abolished, thus enhancing the ability to serve innovative and entrepreneurial enterprises.
Liang Zhifeng, Director of the SME Bureau of the Ministry of Industry and Information Technology, said: “The reform of the ChiNext registration system has greatly simplified the issuance conditions, lowered the entry barriers, and strengthened information disclosure requirements. After the reform, the transparency, inclusiveness and inclusiveness of the ChiNext are significant. The promotion has effectively stimulated the enthusiasm of high-quality SMEs to go public and raise funds.”
According to statistics, among the three batches of specialized and new “little giants” enterprises announced by the Ministry of Industry and Information Technology, 132 companies have been listed on the Growth Enterprise Market, with a total IPO financing amount of 57 billion yuan, of which “little giants” are newly listed under the registration system. There are 28 companies with a total IPO amount of 15.6 billion yuan.
Jia Jingdun, director of the Torch Center of the Ministry of Science and Technology, said: “The reform of the Growth Enterprise Market and the pilot registration system is a major measure for the structural reform of the capital market, which plays a very important role in improving the innovative capital market and making more innovative capital.”
From the perspective of newly listed companies, the agglomeration characteristics of advantageous industries are prominent. The reporter learned from the Shenzhen Stock Exchange that newly-listed companies under the registration system present a good trend of high-end manufacturing and service industries, with a balanced development of various industries. The top five industries in the number of companies are computer, communications and other electronic equipment manufacturing. Industry, special equipment manufacturing industry, general equipment manufacturing industry, professional technical service industry, electrical machinery and equipment manufacturing industry, accounting for nearly 40%.
The relevant person in charge of the Shenzhen Stock Exchange said that the overall industry structure of listed companies on the ChiNext under the registration system is more diversified and inclusive, focusing on the positioning of the “three innovations” and “four new” sectors, showing better growth ability, profitability and maintaining strong innovation Attribute.
Synchronous improvement of basic systems such as refinancing
Under the registration system, not only the IPO system, but also the basic systems of refinancing, mergers and acquisitions, transactions, and delisting are also perfected simultaneously.
On September 17, 2020, Qianyuan Pharmaceutical was registered and approved by the China Securities Regulatory Commission by issuing shares to specific targets through a simplified procedure, becoming the first company to enjoy the “dividends” of the reform of the small fast financing system. It only took 17 working days from the submission of the application to the approval of the registration and the receipt of funds.
This change stems from the optimization of the GEM refinancing registration system in terms of issuance conditions, small fast financing limits, and the validity period of approvals. At the same time, it reduces the review and registration period and improves financing efficiency.
According to data from the Shenzhen Stock Exchange, from the implementation of the registration system to August 20, 170 listed companies on the Growth Enterprise Market have implemented refinancing projects, with actual financing of 163.888 billion yuan, and the number of financing and the amount of financing exceeded any previous year.
Reform of the merger and reorganization system is also advancing. The relevant person in charge of the Shenzhen Stock Exchange said: “The registration system fully considers the needs of existing companies, supports listed companies in the same industry or the integration of upstream and downstream industries, and relaxes restrictions on pricing mechanisms and supporting financing to enhance the financing capabilities of the aforementioned companies.”
According to statistics, since the implementation of the registration system, the GEM has disclosed 43 mergers and acquisitions and reorganization plans for the first time, of which 25 are industry integration plans in the same industry, accounting for nearly 60%.
“The Growth Enterprise Market has played an important role in supporting the merger and reorganization of enterprises and the integration and development of the innovation chain industry chain.” Jia Jingdun pointed out that through the integration of the capital market, the development of technology companies and the integration and development of large and small enterprises are promoted. Has been shown in.
Regarding the trading system, there will be no limit on the rise and fall of new stocks on the ChiNext five trading days before the listing. After that, the limit on the rise and fall has been relaxed to 20%. The temporary suspension mechanism during the trading hours has been optimized. Pricing efficiency has improved significantly. For example, 54.6% of stocks have experienced closing daily limit since the implementation of the ChiNext reform, and 10.1% of individual stocks have experienced closing limit, down 38.8 percentage points and 81.6 percentage points respectively from the previous year; the stock prices have basically formed a relatively balanced 3 trading days after the listing of new stocks. Status.
One year since the reform was implemented, the ChiNext index has risen by 25.12%. The average daily turnover of ChiNext is 192.6 billion yuan, and the average daily turnover rate is 2.89%, maintaining a high degree of activity.
Under the registration system, the GEM delisting system also ushered in reforms-adding new market value indicators, composite financial indicators, streamlining and optimizing the delisting process, is expected to accelerate the elimination of “zombie companies” and “shell companies.” Up to now, a total of 17 companies have been implemented *ST due to the new financial indicators. Since 2020, the Shenzhen Stock Exchange has made a total of 7 ChiNext companies’ decision to terminate listing, and the survival of the fittest mechanism has been gradually improved.
Promote the deep integration of technological innovation and capital
“Innovation and entrepreneurship are inseparable from the support of modern finance, especially equity investment.” Jia Jingdun said that with a vibrant ChiNext market, it will provide strong financial capital support for technology companies, innovation and entrepreneurship, and innovation-driven strategies.
The Growth Enterprise Market has become a gathering place for innovative companies. As of August 20, there were 925 high-tech enterprises on the Growth Enterprise Market, accounting for 91%. Especially since the reform of the ChiNext registration system, many strategic emerging industry companies have gathered on ChiNext. Currently, listed companies in the next-generation information technology, biomedicine, new materials, and high-end equipment industries on the ChiNext account for nearly 50%.
In recent years, the Growth Enterprise Market has played an important role in promoting independent innovation of enterprises, enhancing the resilience of the supply chain of the industrial chain, and solving the problem of “stuck neck”, and has helped many specialized and new “little giant” enterprises to thrive.
Experts believe that in the future, to further promote the in-depth integration of technological innovation and capital, and to better support the service innovation strategy, the capital market has a lot to do.
“The next step is to further unblock the channels for’specialized, special and new’ small and medium-sized enterprises to use the capital market to develop and grow, and lead more high-quality small and medium-sized enterprises to achieve high-quality development through direct financing.” Liang Zhifeng said.
The relevant person in charge of the Shenzhen Stock Exchange said that looking forward to the future, the ChiNext will adhere to the fundamental purpose of serving the real economy and entrepreneurship and innovation, adhere to open, transparent, honest, and strict work ideas, and use a more market-oriented and inclusive system to serve growth companies. Innovate entrepreneurial enterprises, support the in-depth integration of traditional industries with new technologies, new industries, new business forms, and new models, actively implement innovation-driven development strategies, and release new vitality for transformation.