For six months, guided by the new Securities Law, the reform and development of China’s capital market has entered a new historical stage. The registration system reform is progressing steadily and quickly, from the incremental market of the Sci-tech Innovation Board to the”stock + incremental” market of the ChiNext; various institutional measures to protect investors have been implemented continuously, and there is”zero tolerance” for illegal and criminal activities in the capital market. It has become the consensus of all walks of life; the reform of”delegating control and service” continues to advance, and the transparency of supervision and services has been further improved.
It has been more than half a year since the new Securities Law was officially implemented on March 1 this year. In the past six months, guided by the new Securities Law, the reform and development of China’s capital market has entered a new historical stage. The reform of the registration system is progressing steadily and quickly, from the incremental market of the Sci-tech Innovation Board to the”stock + incremental” market of the ChiNext; the securities class action system has opened a new chapter and the penalties for violations of securities laws and regulations have been greatly increased; The requirements of”decentralization, management and service” were implemented, and the regulatory rules”slim down” were effective.
The registration system is advancing steadily and quickly
One of the highlights of the new securities law is the comprehensive implementation of the securities issuance registration system.
On April 27, the”General Implementation Plan for the Reform of the Growth Enterprise Market and the Pilot Registration System” was released. On June 12, the China Securities Regulatory Commission issued 4 regulations including the”Administrative Measures for the Registration and Administration of Initial Public Offerings on the Growth Enterprise Market (Trial)”. On June 22, the first batch of IPO acceptance lists of 32 companies including Kexiang Electronics and Weikang Pharmaceutical under the GEM registration system were released. On August 4th, the first batch of GEM registered new shares officially opened for subscription. On August 12, the China Securities Regulatory Commission approved the IPO registration of 5 companies including Wansheng Intelligent and other companies in accordance with legal procedures. On August 24, with the ringing of the Shenzhen Stock Exchange’s opening bell, the first batch of 18 companies that reformed and piloted the registration system on the Growth Enterprise Market were officially listed.
According to statistics from Eastern Fortune Choice, as of August 30, since the implementation of the new securities law, there were 91 IPO companies on the Sci-tech Innovation Board and ChiNext Board under the registration system, accounting for the total number of A-share IPOs during the period. 48.4%, a total of 160.7 billion yuan in initial fundraising, accounting for 70%of all A-share IPO funds raised during the period.
In addition to the IPO, the M&A, refinancing and refinancing of the Sci-tech Innovation Board and ChiNext also implement the registration system simultaneously. In June, the first merger and reorganization of the Sci-tech Innovation Board landed. Up to now, the registration of refinancing of 6 companies under the GEM registration system has taken effect.
In the opinion of Liu Junhai, director of the Institute of Commercial Law of Renmin University of China, the implementation of the GEM registration system is an important measure to implement the new securities law and to further improve the issuance and listing, trading, supervision and other rule systems, which can effectively promote the improvement The quality of listed companies provides samples for the implementation of the registration system for the main board and small and medium-sized boards, and further promotes the steady and long-term reform of the capital market.
Effectively protect the rights and interests of investors
Strengthening investor protection is another highlight of the new securities law. In the past six months, from the Supreme People’s Court to the Securities Regulatory Commission, various institutional measures to protect investors have been implemented continuously, and”zero tolerance” for illegal and criminal activities in the capital market has become a consensus from all walks of life.
Data shows that in the first half of the year, the China Securities Regulatory Commission made 98 administrative penalty decisions, with a total fines of 3.839 billion yuan, which is close to the level of fines and forfeitures for the whole of last year. The effect of”zero tolerance” is remarkable, and it is inseparable from the continuous implementation of various supporting systems and measures.
From the highest level of law, on July 31, the Supreme Law issued the”Regulations on Several Issues Concerning Representative Litigation in Securities Disputes”, improving the class action system and consolidating the infrastructure of the securities market; on August 18, The Supreme Law issued the”Several Opinions on Providing Judicial Protection for the Reform of the Growth Enterprise Market and the Pilot Registration System” (hereinafter referred to as the”Opinions”). The”Opinions” are of great significance for giving full play to the role of the people’s courts in adjudication, advancing the reform of the Growth Enterprise Market and the smooth progress of the pilot registration system, and protecting the legitimate rights and interests of investors. The issuance and implementation of the”Opinions” will promote the steady and long-term implementation of major capital market reform measures, help build a standardized, transparent, open, dynamic, and resilient capital market, and improve the basic system of the capital market.
From the perspective of the China Securities Regulatory Commission, on August 7, the China Securities Regulatory Commission publicly solicited opinions on the”Measures for the Implementation of the Securities and Futures Administrative Reconciliation”, which was intended to improve the litigation reconciliation system; The”Implementation Measures for Ordering Repurchase of Issuance and Listed Stocks” publicly solicits opinions, clarifying the repurchase price and the repurchase target, etc., with the purpose of preventing fraudulent issuance and protecting the rights and interests of investors.
Liu Guixiang, a full-time member of the Judicial Committee of the Supreme People’s Court, said that at present,”zero tolerance” for illegal and criminal activities in the capital market has become a consensus from all walks of life. Strengthening civil compensation and establishing and improving the securities class action system is one of the important measures. The class action system provides convenient and low-cost rights protection channels for small and medium investors whose rights have been damaged. Its compensation effect of”gathering sands into towers and gathering arms” can form a powerful deterrent and high-pressure situation against securities violations and crimes.
Liu Guixiang said that with the establishment and improvement of the class action system, it will be effective in protecting the legitimate rights and interests of investors, reducing the cost of protecting investors’ rights, improving the governance structure of listed companies, and maintaining the health and stability of the capital market. Play an important role.
Improve the transparency of regulatory services
In order to thoroughly implement the new securities law, effectively implement the requirements of decentralization, regulation and service, and comprehensively enhance the transparency of supervision and services, the Shanghai and Shenzhen Stock Exchanges have recently sorted out A list of self-regulatory and market service items has been compiled.
The Shanghai Stock Exchange continues to develop, revise, and eliminate business rules, continuously optimize the rule system, disclose regulatory standards, and streamline handling procedures. The public release of self-regulation, market service matters and handling basis to the market this time aims to completely eliminate possible”pocket policies” and”hidden thresholds” and other problems, promote”sunshine supervision and transparent supervision”, and provide business convenience for market entities And stable expectations.
The new securities law strengthens the self-discipline management responsibilities of exchanges. Focusing on the implementation of the new securities law, the Shanghai Stock Exchange has stepped up the formulation and revision of basic business rules and supporting rules. Up to now, 26 business rules have been formulated and 10 rules have been revised, which has fully consolidated the basis of self-discipline management rules in the areas of issuance and listing review, continuous supervision, trading organization and member management.
At the same time, in order to improve the friendliness of the rule system, the Shanghai Stock Exchange has vigorously”merged similar items” and”removed redundant items” in response to the large-scale and rich hierarchical characteristics of the current rule system, and notified the The guidelines and other low-level norms are integrated and merged, and rules that do not meet the needs of market development are abolished. In this cleanup, 13 business rules and 33 business guides were abolished, and the effect of the rule system”slimming” is beginning to show.
On August 30, the Shenzhen Stock Exchange issued the”Risk Classification Management Measures for Listed Companies”, which is important for the Shenzhen Stock Exchange to promote classified supervision, precise supervision, and technological supervision, improve risk prevention and control, and improve the effectiveness of front-line supervision Initiative.
Chen Li, chief economist of Chuancai Securities, said that for the capital market,”delegating control and service” is conducive to further simplifying and optimizing the original administrative review process, making the allocation of capital market elements more convenient and marketable. To promote the full implementation of the registration system reform.