On February 24, 2018, the mainstream media in China was delayed by the registration system. According to the "Securities Law of the People's Republic of China", the deadline was extended by two years after the deadline for the execution of the decision to authorize the State Council to implement the reform of the registration system for stock issuance was expired Until February 29, 2020.
For companies waiting for the registration system, it is almost a take-home one of the main reasons for the delay, the SFC Chairman Liu Shiyu clearly points out: the internal environment, the domestic capital market, there are still many and implementation of registration In view of the external environment, the relevant financial markets in the developed countries in Europe and the United States have accumulated some bubbles and risks and have shown signs of adjustment and have given China's choice of the time window for the reform of the registration system Uncertainty '.
What is the registration system in the end? What is the impact on the development of enterprises, why the postponed registration system will make a medium and small buffer room for growth. Here is a brief analysis.
To do some understanding of the stock market companies know that the Chinese stock market is the audit system is to want to go public, the company needs to submit information to the Commission, from its audit, excluding poor performance, data fraud enterprises, the current Shanghai stock market requires three years total Profitable, and profit more than 30 million, this is only official data, the actual not more than 50 million of the enterprises, can only wait to line up, simply put, companies or companies want to go on the market is still very difficult, as long as it can be approved, then At least in the last 3 years performance is very good may be listed.
Registration system, it is relatively simple, only need to submit relevant information, do not need the SFC review, the threshold is almost gone, the listing of the enterprise becomes much easier, data fraud will also appear, did not find it, check To be severely punished.Of course, to the shareholders in terms of miserable, need a golden eye to distinguish the good or bad business.
Once the registration system is implemented, what will happen without the review of the CSRC? Both Shanghai and Shenzhen will be flooded with a large number of listed companies, and all companies have the chance to go public. It will fulfill the principle that 'the market is an invisible hand' and will automatically adjust, The stock market's filtering mechanism will be very strong, veteran companies can not be retained performance will face delisting, a lot of meager profit or loss companies will be back to their original form, the stock will fall back a few hair or even a few minutes, the shell will no longer exist, shell resources Worthless, no business pay for the shell.
Therefore, once the registration system is implemented, the stock price of a large number of poorly-run companies will plummet, especially in the small and medium-sized businesses with unstable performance. Once the registration system is implemented, the small cap and the GEM will plummet, Capital will enter the blue-chip, which led to a substantial rise in blue-chip!
The registration system is only a tool for reform and stock market adjustment. The fundamental reason for the delay is that the current small and medium-sized job losses have been too severe and have seriously affected China's economic development. As the risks to external conditions have become greater, The slightest mistake or mistake may result in the collapse of a large number of companies and eventually lead to a systemic financial crisis - which is exactly what China has tried to avoid in recent years!
The main reason for the delay is Liu Shiyu proposed two aspects:
On the one hand, the internal conditions are not yet perfect, and we know that last year's environmental turmoil caused a serious loss to a large number of small and medium-sized enterprises, a large number of listed companies have also been severely affected, with generally lower performance or even serious losses, resulting in a serious stock price drop. Just stiff! If there is no life-saving straw, then many companies will inevitably go bankrupt!
In order to prevent the economic risks caused by the bankruptcy of a large number of companies, it is necessary to strengthen loans for small enterprises and stabilize their share prices so that they can weather the immediate difficulties. However, due to the external environment in the US rate hike cycle, Monetary policy It is estimated that it will be very difficult for SME loans to borrow in the next two years, but the central government is also actively reforming and implementing an inclusive financial policy to support the development of inclusive financial services for financial institutions in order to solve the problem of financing difficulties for small and medium-sized enterprises.
The second aspect: the external environment is not allowed, with the SFC Chairman Liu Shiyu's original remark is: 'The relevant financial markets in developed countries in Europe and America have accumulated some bubbles and risks, there are signs of adjustment, to our country to implement the registration system reform time window with the choice Uncertainty '.
In January 2018, there was tremendous volatility in the U.S. stock market. As the United States kept raising interest rates and letting international capital enter the United States, the U.S. stock market kept rising. After a large number of international capitals entered the stock market, the U.S. capital sold off a large amount of stock and all these international capitals Now that the US stock market has started to dig a few days ago, there have been several major plummetions, which, coupled with the internal environmental impact in China, will not be able to withstand the plunge in the U.S. stock market during the U.S. stock market disaster if we do not launch a policy that favors small- 'Follow the trend' of the tide!
In order to achieve the steady development of China's stock market, saving small and medium-sized, so postponed the registration system!
It is now clear that the registration system will be postponed until 2020. That is to say, at present, from the perspective of national policies, its purpose is to make the small cap rise, resume its financing function and prevent the economy from dying or massive bankruptcy!
Registration system for the industry is narrow, low profits, small size, the development of much-needed funds for SMEs, such as Instrumentation Industry is very good, but the difficulty of state regulation is enormous.
Look forward to the registration of SMEs, tighten their belts, and then patiently two years, the dawn of victory is at hand.
