Economic Observer Network reporter Liang JiOn April 9, Yi Huiman, chairman of the China Securities Regulatory Commission, delivered a speech at the third member congress of the Association of Listed Companies. He said that the quality of listed companies is the micro-foundation for high-quality economic development, and a stable and progressive capital market will always be a strong support for the high-quality development of listed companies. Yi Huiman pointed out that, as outstanding representatives of more than 48 million enterprises in my country, listed companies should set an example and strive to achieve higher-quality development.
Data show that as of the end of March this year, there were 4,782 domestic listed companies with a total market value of 80.7 trillion yuan, ranking second in the world in scale; the number and market value of listed companies increased by 33.4% and 85.3% respectively compared with the end of 2018. The proportion of the profits of physical listed companies in the profits of industrial enterprises above designated size has increased from nearly 40% in 2018 to about half at present; the taxes and fees paid by listed companies are equivalent to nearly 1/4 of the national tax revenue. The status of listed companies as a pillar of the national economy is more prominent.
The non-bank team of Galaxy Securities believes that under the conditions of high-quality economic development in my country, solving supply-side contradictions, and increasing the proportion of direct financing, the capital market’s role as a hub to promote technological innovation and the transformation and upgrading of the real economy will be further strengthened, and the deepening reform of the capital market will continue. Registration is a breakthrough for the deepening reform of the basic system of my country’s capital market, and it is of far-reaching significance to continue the incremental market reform to the stock market reform.
The capital market strongly supports the high-quality development of listed companies
Yi Huiman pointed out that under the impact of the epidemic, economic globalization has encountered adverse currents, the vulnerability of industrial and supply chains has increased, the world economic recovery has slowed down, inflation has been high, and unstable and uncertain factors have increased significantly. my country’s economic development is facing triple pressures of shrinking demand, supply shocks, and weakening expectations. The development of listed companies faces increasing hard constraints such as cost, resources, and environment, and the foundation for continuous profit recovery is still not solid. Finding the optimal solution under multiple constraints The difficulty keeps increasing. On the other hand, listed companies still have many favorable factors in terms of high-quality development. First, the synergy of macro policies to stabilize growth and expectations is increasing; second, the market ecology of the survival of the fittest is accelerating; third, the attractiveness of the capital market to investors is constantly improving.
Yi Huiman said that a stable and improving capital market will always be a strong support for the high-quality development of listed companies. No matter now or in the future, the capital market will provide inexhaustible impetus for listed companies to overcome difficulties and move forward bravely with the “four constants”.
First, the direction of the capital market to firmly deepen reforms will not change.The China Securities Regulatory Commission will steadily promote the full implementation of the reform of the registration system for stock issuance.with the registration system reform as the lead, the implementation of key reform tasks such as the construction of the basic system of the capital market, the improvement of the rule of law system, the transformation of supervision and the improvement of capabilities will be effective, further enhance the adaptability and inclusiveness of the basic system, continue to optimize the market structure and ecology, and improve To give full play to the functions of capital formation and resource allocation.
Second, the pace of high-level opening of the capital market will not change.The China Securities Regulatory Commission will promptly study and launch a new round of pragmatic measures for independent opening up, and steadilyExpand the scope of the Shanghai-Shenzhen-Hong Kong Stock Connect and promote the expansion and optimization of the Shanghai-London Stock Connect mechanismsteadily expand the two-way opening of the commodity and financial futures markets, enrich the supply of international varieties, and comprehensively enhance the competitiveness of the capital market system.Accelerate the implementation of new regulations on the supervision of overseas issuance and listing of enterprises, and maintain the smooth flow of overseas listing channels, to support Chinese enterprises in making better use of the two markets and two resources in accordance with laws and regulations. In accordance with the principle of “respecting international practices and complying with domestic laws and regulations”,Promoting China-US Audit and Regulatory Cooperation to Achieve Resultsto build a predictable international regulatory environment for the high-level opening of the capital market.Strengthen the pragmatic cooperation between the mainland and Hong Kong capital marketsto help maintain Hong Kong’s status as an international financial center.
Furthermore, the firm attitude of the capital market to implement the “two unswerving” policies will not change. While the capital market continues to vigorously support the reform of state-owned assets and state-owned enterprises and make state-owned capital stronger, better, and bigger, it also unswervingly supports the innovative transformation and healthy development of private enterprises. At present, the number of private listed companies has exceeded 3,000, accounting for about 2/3, and private enterprises have accounted for more than 80% of newly listed companies in recent years. The CSRC will be committed to creating a more level playing field for enterprises of different ownerships, better support the development of private enterprises through various tools such as stocks, bonds, funds, REITs, futures options, etc., and promote the speedy expansion of high-quality private enterprise financing.
Finally, the cohesion of the capital market to maintain healthy and stable development will not change. Practice has once again proved that it is the inherent demand of capital market operation and the good wishes of all market participants to exert joint efforts to create good expectations. All relevant departments can adhere to the principles of marketization, rule of law, and internationalization, pay attention to synergy, continue to pay attention to and address everyone’s concerns, strengthen expectation management, and jointly create a favorable development environment for the capital market.
Ren Lang, an analyst at Kaiyuan Securities, said that under the promotion of the registration system reform centered on information disclosure, the efficiency of IPO review has been significantly improved, and direct financing has ushered in a major expansion. Under the registration system, different sectors develop in dislocation and complement each other, which further improves the structure of my country’s multi-level capital market. The listing conditions under the registration system are more diverse and inclusive, so that technological innovation enterprises at different development stages, with different industry attributes and different governance structures have more convenient listing channels. The pricing method of new shares under the registration system is more market-oriented, the pricing efficiency has been greatly improved, and the underpricing of new shares has been significantly improved. The comprehensive promotion of the registration system will better realize the function of the capital market to serve the real economy.
Explore the high-quality development path of listed companies
Yi Huiman said that as an outstanding representative of the more than 48 million enterprises in my country, listed companies should set an example and strive to achieve higher-quality development. As a public company, we must fully realize that listing is not only for financing, but more importantly, to improve governance, enhance competitiveness, and better return shareholders and society through listing.
Yi Huiman emphasized that listing is by no means the “end”, but the “starting point” to achieve higher-quality development. It is necessary to follow the characteristics and development laws of public companies, adhere to the “four awe” principles and the basic requirements of “four bottom lines”, focus on improving the “five capabilities”, and explore high-quality development paths.
The first is to grasp the foundation and consolidate the governance capacity.Corporate governance is the most critical factor in determining the effectiveness of listed companies. By building an effective governance mechanism and internal control system, it is necessary to balance the relationship between shareholders and management, large shareholders and small and medium shareholders, and the company and other stakeholders, and form a sound incentive and restraint mechanism to provide guarantee for corporate value creation. In recent years, financial fraud, major shareholders infringing on the interests of listed companies, and “two-headed” board governance deadlocks have become commonplace. In the final analysis, there is a problem with corporate governance. To improve the company’s governance level, on the one hand, it is necessary to rely on the “hard means” of the rule of law, promote the formulation of laws and regulations such as the “Regulations on the Supervision and Administration of Listed Companies”, improve the system of independent directors, further clarify the rights and responsibilities of relevant parties, and promote the formation of standardized and effective governance. mechanism. On the other hand, it is necessary to rely on “soft constraints”, advocate best practices, strengthen self-discipline management, and play a leading role in the demonstration and leadership of outstanding companies, so as to promote greater improvement in corporate governance.
The second is to strengthen the main business and enhance the competitiveness.The capital market has both large and excellent industry “giants” and small and beautiful market segment champions. No matter which type, they must focus on the main business. In recent years, some listed companies have violated the laws of the economy, blindly spread out stalls, launched projects, and invested indiscriminately. Some of them face greater risks due to excessive diversification and financialization, resulting in the hollowing out of their main businesses and deviating from the real to the virtual, which will adversely affect the interests of shareholders and market stability. The CSRC will continue to improve the rules and regulations of the capital market, guide listed companies to focus on their main business, develop steadily, and focus on improving the efficiency and effectiveness of development. It is necessary to adhere to the supervision orientation of supporting the superior and limiting the inferior. For the leading enterprises with outstanding main business and strong competitiveness, further support them to become better and stronger, and play a leading role in demonstration; for those who unilaterally pursue diversified development, strictly supervise their mergers, acquisitions, restructuring and financing. For “empty shell” and “zombie” enterprises whose main business is shrinking and do not have the ability to continue to operate, strictly implement the compulsory delisting system and resolutely promote clearing.
The third is to cultivate longboards and enhance innovation capabilities.Innovation is at the core of the overall situation of my country’s modernization construction, and it is the fundamental way out for high-quality economic and social development. Enhancing innovation capability is not only a development issue for enterprises, but also a survival issue. In recent years, the innovation capabilities of my country’s listed companies have accelerated, but they are still insufficient and unbalanced. The total investment of the top 100 listed companies in R&D spending accounts for nearly half of all listed companies, and there is still much room for improvement in the innovation capabilities of many companies. There is also a big gap in R&D intensity. The CSRC will take the full implementation of the stock issuance registration system as an opportunity to further enhance the adaptability of basic systems such as issuance and listing, refinancing, mergers and acquisitions to technological innovation, give full play to the strategic role of private equity and venture capital funds in supporting innovation, and improve The bond market’s financing support mechanism for technology companies promotes a high-level cycle of technology, capital and industry. Listed companies should also continue to strengthen their position as the main body of innovation, make good use of various tools of the capital market to support innovation, adhere to uphold innovation, effectively enhance the “content” of science and technology, become an important birthplace of original innovation and emerging technologies, and lead economic transformation and upgrading.
The fourth is to increase resilience and improve the ability to resist risks.The ability of enterprise development is largely constrained by the ability of risk control. Listed companies should work hard to cultivate their internal skills, combine the entrepreneurial spirit of being brave to innovate and dare to innovate with the construction of risk prevention mechanisms, and continuously enhance the company’s resilience. High debt and high leverage are one of the biggest risk sources for enterprises. Some listed companies and major shareholders increase their leverage through blind financing on and off the balance sheet, on- and off-site, and in local and foreign currencies. Risks break out and they are in a difficult situation. The lessons are very profound and must be learn a lesson. The China Securities Regulatory Commission will further enhance risk monitoring and identification capabilities, promote information sharing, and identify emerging and trending problems early. At the same time, improve the effective bond financing restraint mechanism, strengthen the consistent supervision of the stock pledge financing business on and off the market, support listed companies to stabilize leverage and resolve risks through restructuring and reorganization, and promote the steady development of listed companies.
Fifth, focus on benefits and enhance the ability to return.The improvement of the quality of listed companies should ultimately be reflected in the ability to create and distribute value. Listed companies should continue to enhance returns to shareholders through cash dividends, share repurchase and other means, and enhance investors’ sense of gain. At the same time, it should also pay more attention to the demands of other stakeholders, strive to build a better development platform for employees, create better products for customers, provide creditors with more solid performance guarantees, contribute more tax revenue to the country, and contribute more to the people. The masses leave a better ecological environment and achieve higher-quality development in the benign interaction with the society. The China Securities Regulatory Commission will continue to increase investor protection efforts, further guide listed companies to give “real money” to return investors, actively respond to the demands of stakeholders, better fulfill social responsibilities, and set an example for practicing new development concepts.
On the previous April 8, the official website of the China Securities Regulatory Commission announced the construction of a rule of law government in 2021, which mentioned the work arrangements for the construction of a rule of law government in 2022: the construction of a rule of law government in the capital market will continue to be deepened; The main line of capital market reform will further strengthen the construction of the basic system of the capital market; highlight the combination of delegating power and regulation, conscientiously perform regulatory duties, guide and encourage market product innovation; strictly implement the “Opinions on Strictly Crackdown on Illegal Activities in Securities in accordance with the Law”, and improve securities law enforcement and judicial Institutions and mechanisms to severely crack down on illegal acts in the capital market; to create a standardized, transparent, open, dynamic and resilient capital market, to provide a strong legal guarantee for the high-quality development of the capital market, and to welcome the victory of the 20th National Congress of the Communist Party with excellent results. .
In 2022, we will continue to deepen the capital market reform with the full implementation of the stock issuance registration system as the main line. This regulatory setting is also the reform content that the capital market is most concerned about this year.
The Galaxy Securities Research Report believes that with the comprehensive advancement of the registration system, the financing efficiency will be improved, the financing structure is expected to be further improved, and direct financing will develop greatly. The registration system takes information disclosure as the core, streamlines and optimizes issuance conditions, reduces hard constraints on profitability, improves inclusiveness, and encourages small and medium-sized startups that conform to the national industrial strategic direction and possess core technologies to develop and grow through capital market financing. Promote high-quality economic development.Return to Sohu, see more
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