GEM welcomes registration system!How to misalign with the science and technology board?How to affect the capital market?

GEM welcomes registration system!How to misalign with the science and technology board?How to affect the capital market?
According to CCTV news, on April 27, the 13th meeting of the Central Committee for Comprehensive Deepening Reform adopted the “General Plan for the Reform of the Growth Enterprise Market and the Pilot Registration System”.This means that the reform of the GEM pilot registration system has started.  The meeting pointed out that advancing the reform of the GEM and the pilot registration system are important arrangements for deepening the reform of the capital market, improving the basic system of the capital market, and enhancing the functions of the capital market.We must focus on creating a standardized, transparent, open, energetic, and necessary capital market, promote basic system reforms such as issuance, listing, information disclosure, trading, and delisting, and adhere to the development of the GEM and other sectors in a misaligned manner to identify eachOrientation, develop their own characteristics, and promote the formation of a moderately competitive pattern that has its own focus and complements each other.  How to develop in dislocation with the Science and Technology Innovation Board?Or to revise the listing standards to make a differentiated registration system. Pilot reform has already been implemented in the science and technology board.According to the Securities Times, the current GEM pilot registration system reform, in terms of the pilot registration system arrangement, the GEM pilot registration system is generally consistent with the Science and Technology Board, the registration process is divided into two exchange examinations and the SFC registration alternative, through Q & AWays to urge enterprises to improve the quality of Xinpi.The GEM registration system is different from the GEM ratio in three aspects. First, the establishment of a coordination mechanism for the review of the Shanghai and Shenzhen Stock Exchanges to maintain the same standard of review standards to avoid the formation of resource grabs; second, to clearly define the enterprise connection arrangements to ensure registrationThe third is the refinancing and merger and acquisition reorganization involving the simultaneous implementation of the registration system of the registration system.  Li Chao, vice chairman of the China Securities Regulatory Commission, introduced that the reform of the GEM pilot registration system adheres to the “one main line, three co-ordination”, and the “one main line” is the stock issuance registration system with information disclosure as the core, improving the scope and authenticity.The value judgment is carried out independently, and the choice is truly given to the market.The “three co-ordinations” include: one is to promote the reform of the GEM and the construction of a multi-level capital market system, adhere to the strategic development of the GEM and other sectors, and form a moderate competition pattern with different focuses and complement each other;System and other basic systems, implement a package of reform measures, and improve supporting systems; the third is to coordinate incremental reforms and stock reforms, to accommodate stock reforms, to stabilize stock companies and investors ‘expectations, and to implement reforms in earnest.  How does the GEM and the Science and Technology Innovation Board form a misaligned development?Dong Dengxin, director of the Institute of Financial Securities at Wuhan University of Science and Technology, told reporters that the door of the IPO determines the difference between the GEM and the Science and Technology Board.Under the pilot registration system of the GEM, the listing standards of enterprises are more inclusive than those of the Science and Technology Board.At present, the Science and Technology Board has set five sets of listing standards at the core of the city scale. The minimum market value standard is 1 billion, with operating income, net profit, R & D expenditure and other indicators. In addition, two sets of separate arrangements are set for red chip companies and voting rights differences.Standard, market value requirements are 5 billion and 10 billion respectively.Dong Dengxin believes that the listed companies of the Science and Technology Board are mainly companies with a market value of more than 1 billion US dollars. The entry-level setting of GEM listing should focus on small and medium-sized innovative enterprises with a market value of less than 1 billion US dollars.In terms of overall standards, the Growth Enterprise Market and the Science and Technology Innovation Board should be distinguished from each other and complement each other, each with its own focus, forming a moderate cross-competition.  In terms of listing standards, the current listing standards of GEM have higher requirements for profit, and there are two sets of standards: First, they have been continuously profitable in the past two years. The net profit in the past two years has totaled more than 100 billion yuan, and the net assets at the end of the latest period are more than 20 millionThe second is profit in the most recent year, with operating income exceeding 50 million yuan in the latest year and net assets exceeding 20 million yuan at the end of the latest period.Pan Xiangdong, chief economist of New Era Securities, believes that GEM will refer to the Science and Technology Board in issuing and listing standards, and on the basis of two sets of two standards, directly cancel the requirements for violations and reduce the requirements for profit.  According to the financial report, for unprofitable companies, GEM has canceled the requirements of the “existing replacements that did not exist in the most recent period” in the existing rules, setting a one-year transition period to support the development of innovative and entrepreneurial enterprises.  In addition to the difference in listing standards, there is a difference in positioning between the ChiNext and the Science and Technology Board.Pan Xiangdong told reporters that the main focus of the science and technology board positioning is to support new generation information technology, high-end equipment, new materials, new energy, energy conservation and environmental protection, biomedicine and other emerging industries and strategic emerging industries, promote the Internet, big data, cloud computing, Deep integration of artificial intelligence and manufacturing.The GEM market makes up for the lack of the middle layer of the capital market system, and its positioning is high-growth, high-tech content, new technologies, new formats, and new model enterprises. Direct financing support mainly expands the financing channels for SMEs.Breakthroughs in the differences between enterprises and industries targeted by the Science and Technology Board and GEM.Overall, the GEM will take over the science and technology board, and the future will be the main battlefield for long-term registration reform.  What impact will it have on the capital market?Small and medium-cap stocks may be more active. As early as August last year, the “Opinions of the Central Committee of the Communist Party of China on Supporting Shenzhen to Build a Pilot Demonstration Zone of Socialism with Chinese Characteristics” has already proposed to study and improve the GEM issuance and listing, refinancing and merger and reorganization systems to create conditionsPromote the reform of the registration system.  The new securities law came into effect on March 1, this year, which clarified the overall promotion of the registration system, adjusted the registration system in terms of securities issuance conditions and procedures, and set aside a system for the step-by-step implementation of the registration systemspace.The General Office of the State Council issued a notice on February 29, deploying a step-by-step arrangement to implement the reform of the registration system, and required the CSRC to study and formulate a general plan for the public issuance of a registration system on the GEM pilot stocks.The growth of the GEM registration system is expected to be accelerated.  Yang Delong, chief economist of Qianhai Open Source Fund, said that the internal registration system reform is a gradual process, and the reform will pay attention to the market’s affordability and grasp the rhythm.The reform of the GEM registration system will not cause the expansion and expansion of new shares and a significant diversion of funds.The Science and Technology Board did not cause a capital shunt to the broader market, and there was no obvious capital shunt to the A shares when the GEM was launched.  The implementation of the registration system on the GEM is conducive to promoting the more active small and medium-cap stocks, and brokerage firms, venture capital companies, etc. will obviously benefit from the GEM registration system dividend.Under the impact of the current epidemic on the economy, promoting the reform of the GEM registration system is conducive to promoting more high-quality emerging technology companies to land on the capital market, and further enhance the ability of the capital market to serve the real economy.  For enterprises, the reform of the registration system can also implement the role of improving the quality of listed companies.Pan Xiangdong said that it is an incremental market for the Science and Technology Board, and there are a large number of listed companies on the GEM. Therefore, the gradual transformation of the registration system will significantly affect the incremental listed companies and stock companies on the GEM.For listed companies in stock, it is necessary to improve the information disclosure in accordance with the requirements of the registration method and dare to accept supervision. Once fraud and violations occur, they will be severely punished by the law or even delisted to achieve the survival of the fittest mechanism of the registration system.For incremental listed companies, once the registration system is implemented, the number of GEM listed companies will decrease in the short term, and it is inevitable that the fish market will expand. Some listed companies may have low quality or even repeated issuance. These issues also need to be improved and strict implementation of the delisting system, Severely punish financial fraud and protect the interests of small and medium investors.  In addition, the GEM registration system reform is also of great significance to the integration of multi-level capital markets.The comprehensive deepening reform of the New Third Board has been launched, and the relevant documents of the selected layer transfer board system have also begun to solicit opinions from the public. The destinations for the listed companies of the selected layer transfer board include the Shanghai Stock Exchange and the Shenzhen Stock Exchange GEM.Dong Dengxin said that the first biggest beneficiary after the implementation of the new third board selection layer transfer mechanism should be the GEM. The GEM has a great advantage in connecting the new third board in the future. The new third board will provide a continuous stream of small and medium-sized innovative enterprises for the GEM.The transfer to the stock market does not need to be approved or registered by the Securities Regulatory Commission, and is subject to review by the exchange, which also requires the reform of the GEM registration system to be implemented as soon as possible.  Has investor access information changed?Or maintain the existing standards unchanged, Li Chao, vice chairman of the China Securities Regulatory Commission, said that the current round of the reform of the GEM pilot registration system involves the sector’s reform arrangements.Optimize the conditions of the issuance list, the specific conditions formulated by the Shenzhen Stock Exchange, support the listing of red chip structures and other companies, and improve the appropriate management of investors, The appropriateness requirements for incremental investors to match risks.  Will the GEM investor access standards change?The access standard for individual investors of the Science and Technology Board mainly has two conditions: “funds + experience”: the securities account within 20 trading days before the opening of the application authority and the assets within the capital account are no less than 500,000 yuan, and the participating securitiesThe transaction is over 24 months.  Pan Xiangdong believes that in terms of the criteria for the entry barriers for investors, the ChiNext may refer to the Science and Technology Board to increase investor requirements accordingly, which may be an investment period of more than two years; 500,000.  Dong Dengxin believes that GEM investor access can maintain the existing standards.GEM investors have sufficient risk awareness and practical experience, and do not need to re-establish the investor access system, which is also convenient for trading and investment in stock listed companies.This also embodies a kind of market inclusiveness, and treats stock companies and incremental companies equally.  Sauna, Ye Wang Gu Zhijuan Editor Sun Yong