The 2019 Central Economic Work Conference clarified the ＂road map＂ for capital market reform

　　At 9: 30am on July 22nd, the first batch of 25 science and technology innovation board stocks started trading on the Shanghai Stock Exchange, and science and technology innovation board officially opened.

　　Chen kangliang

　　2019 is a "big year" for China’s capital market reform, including the establishment of science and technology innovation board and the pilot registration system, and many other heavy reforms have been carried out one after another, which not only achieved phased results, but also triggered the market’s expectation on how to "continue to reform" in the next step. In this regard, the Central Economic Work Conference, which closed in Beijing on December 12th, gave the answer.

　　The meeting proposed to speed up the reform of the financial system, improve the basic system of the capital market, improve the quality of listed companies, improve the exit mechanism, and steadily promote the reform of the Growth Enterprise Market and the New Third Board.

　　Dong Dengxin, director of the Institute of Finance, Wuhan University of Science and Technology, said that the Central Economic Work Conference made clear four requirements on how to reform the capital market in China in the next step, among which "improving the basic system of the capital market" was the first one, which was the requirement of clearly promoting the modernization of the capital market governance system and governance capacity from the height of top-level design, and was in line with the spirit of the Fourth Plenary Session of the 19th CPC Central Committee.

　　Dong Dengxin further pointed out that as far as the development of China’s capital market is concerned, in the past 30 years, it has focused on the expansion of scale, from scratch, from small to large, and paid relatively little attention to the improvement of the basic system. However, it should be noted that institutional advantage is the greatest advantage and institutional development is the greatest development. It is of great significance to improve the basic system of the capital market, especially considering that China’s capital market should achieve high-quality development.

　　"Relevant systems, including information disclosure system, IPO (initial public offering) system, delisting system, etc., all need to be further improved, and the direction is to realize the marketization, legalization and internationalization of the capital market." Dong Dengxin said.

　　In order to improve the quality of listed companies, Zhang Yuewen, director of the Corporate Finance Research Office of the Institute of Finance of China Academy of Social Sciences, said that listed companies are the foundation of the capital market, and the long-term healthy development of the capital market can only be guaranteed if there are high-quality listed companies. However, in the current China capital market, the quality of some listed companies is worrying, and there are still big problems, including the decline in comprehensive financial quality and the increase in asset-liability ratio; There are defects in corporate governance, and the relationship between controlling shareholders and minority shareholders is alienated; The quality of information disclosure is not high; The protection of investors’ rights and interests is not paid enough attention, and it needs to be reformed urgently.

　　To this, Dong Dengxin also agreed. He said that in the past, market players and regulators paid insufficient attention to improving the quality of listed companies, but this year, the attention of all parties has been continuously strengthened. A few days ago, the China Securities Regulatory Commission issued the "Action Plan to Promote the Quality Improvement of Listed Companies", striving to greatly improve the overall appearance of listed companies through three to five years’ efforts. This indicates that the special reform to improve the quality of listed companies has moved from blueprint planning to construction, and the next step is to implement it, including improving the delisting mechanism.

　　Zhang Lichao, a senior researcher at Guosen Securities, also said that improving the delisting system of listed companies and strengthening delisting efforts are important components of multi-level capital market construction, which plays an important role in optimizing resource allocation, promoting the survival of the fittest, improving the quality of listed companies and protecting the legitimate rights and interests of investors. The remarkable increase of delisting companies since this year shows that the export of A-share market is gradually smooth. Only by making the delisting channels smooth can the capital market become an organic system with normal metabolism, which will also objectively promote the improvement of the quality of listed companies.

　　Li Zhan, chief economist of zhongshan securities, believes that the diversified delisting mechanism of China’s capital market will be accelerated in the future, including both compulsory delisting and active delisting, as well as restructuring delisting methods such as absorption and merger, clearing assets replacement and selling shells, and gradually converge with developed capital markets such as the United States.

　　Pan Xiangdong, chief economist of New Era Securities, said that this is an important area for deepening the reform of China’s capital market, especially the conditions surrounding the reform of the pilot registration system of GEM have become more and more mature. Growth Enterprise Market will take over from science and technology innovation board and become the main battlefield of China’s registration system reform in the future.

　　In fact, the top-level design to promote the reform of the registration system of the Growth Enterprise Market was published nearly four months ago. In August, the Opinions of the Central Committee of the Communist Party of China and the State Council on Supporting Shenzhen to Build a Pilot Demonstration Zone in Socialism with Chinese characteristics proposed that we should study and improve the GEM listing, refinancing, mergers and acquisitions, and create conditions to promote the reform of the registration system.

　　Pan Xiangdong further pointed out that encouraging science and technology enterprises to list on the GEM will help to further lower the threshold for science and technology enterprises to enter the capital market; GEM and science and technology innovation board will form an organic supplement to further improve the construction of multi-level capital markets; The implementation of the registration system for GEM enterprises can encourage more high-quality operating assets such as small and medium-sized enterprises to enter the GEM, improve the capital market structure of the GEM, and promote the healthy development of China’s capital market.