Registration system is coming! Widening the exit channel, VC/PE will usher in a big bonus.


Registration system is coming! Widening the exit channel, VC/PE will usher in a big bonus.

Source: investment circles

"Registration system will be more market-oriented. The IPO market should be progressive and retreatable. Those zombie companies and worthless companies that survive on rent collection should have been delisted long ago. Good science and technology companies should be active in the capital market, so that investors can find more valuable enterprises. For VC/PE, it's a big bonus, which can solve the problem of "barrier lake" of entrepreneurship project listing.

Author |CY

Report on investment PEdaily

Registration system finally has a milestone.

On November 5, Chinese President Xi Jinping said that in order to better play the important role of Shanghai and other regions in opening up to the outside world, he decided:

First, the new film area of the Shanghai free trade pilot area will be added.

Second, we will set up a pilot registration system on the Shanghai Stock Exchange to support the construction of Shanghai International Financial Center and Science and Technology Innovation Center, and constantly improve the capital market infrastructure system.

Three, we will support the development of Yangtze River Delta regional integration and become a national strategy.

Among them, the most important concern is the establishment of Shanghai science and technology innovation board and the pilot registration system. This good news, venture capital stocks rose collectively. As of noon closing, Zhangjiang Technologies, Zijiang Enterprises, Start-up Black Horse, Huajin Capital, Fudan Fuhua and other stocks rose and fell.

VC/PE: more market-oriented, worthless enterprises should have been delisted.

Under the market conditions of difficult fund raising and exit, many start-ups can not go to the A-share market, and the overseas market is too crowded. Implementing the registration system of Kechuang board will make the listing more smoothly for entrepreneurs, and also provide a new exit channel for investment institutions.

"Registration system will be more market-oriented." In an interview with the investment community (Wechat ID: pedaily2012), Wu Shichun, founding partner of Plum Blossom Venture Capital, said: "The IPO market should be progressive and retrogressive, and those zombie enterprises and worthless enterprises that survive on rent collection should be delisted long ago. Good science and technology companies should be active in the capital market, so that investors can find more valuable enterprises. For VC/PE, it's a big bonus, which can solve the problem of "barrier lake" of entrepreneurship project listing.

Yu Lifeng, a partner of Source Star Capital Management, also said that the establishment of the Kechuang board and the pilot registration system are significant advantages, which are conducive to boosting market confidence and promoting scientific and technological innovation. He told the investment community, "It is not only for technology Internet enterprises, but also for technology innovation enterprises and the capital market as a whole. For investment institutions, the most direct impact is of course a guide to increase investment in scientific and technological innovation enterprises.

"Registration system is the general trend and an important symbol of capital marketization." In the view of Feng Yiyi, a partner of Atomic Venture Capital, excellent enterprises can make better use of capital market, especially secondary market, to obtain financing, so as to solve the financing difficulties of SMEs in the past.

But the opening of the "door" also means that "flies and mosquitoes" are easier to come in. If the registration system is out of market supervision, it may become a "horn" tool to collect money.

Feng introduced: "for VC/PE, the good thing is to quit. In the past, the exit audit system was relatively narrow. But it may have some impact on late investors, because if enterprises can enter the secondary market earlier, then many late-term funds will face the risk of reducing the investment target.

In addition, investors also introduced that the pilot registration system is more convenient, the threshold is lower, the time is faster, many excellent Unicorn companies do not need to go to the U.S. stock market, Hong Kong stock market.

More agencies have said they are looking forward to paying attention to the follow-up rules.

The establishment of Ke Chuang board will make the capital market more effective.

The Science and Technology Innovation Board was first launched on December 22, 2015, in order to promote the innovation of national science and technology financial reform, focusing on science and technology innovation enterprises.

At that time, some analysts said that, like the new third board, it belonged to the specialized market serving SMEs. But unlike the new third board, it will focus on SMEs that have not yet entered the mature stage but have growth potential, and meet the relevant normative, technological and innovative characteristics.

In addition, unlike SMEs and GEM, STIB has no specific requirements for financial indicators such as business income, net profit and net cash flow generated by business activities. However, it attaches great importance to the protection of investors'interests and emphasizes the standardized operation, growth and future development prospects of enterprises.

Regarding the establishment of science creation board, according to Tencent Financial and Economic Report, Li Lifeng, chief strategist of Guojin Securities, said that the establishment of science creation board and the pilot registration system in Shanghai Stock Exchange will mean the end of the following speculative value of "junk stocks and shell companies", the capital market will be more effective, and the survival of the fittest companies will be helpful. In terms of value investment, the science and technology board is set up in the Shanghai Stock Exchange, which will help Shanghai create the "National Innovation Center for science and technology".

It is reported that the Science and Technology Innovation Board was initially named "Four New Boards". Considering the need to radiate the whole country, it was renamed "Science and Technology Innovation Board" and will be landed in Shanghai Stock Exchange Center. At present, the center already has "E board" and "Q board", so the "K board" is also called "N board". At present, all 4500 enterprises of Q board can be transferred to the science and technology innovation board.

But it is more inspiring and the advent of registration system. Compared with the approval system, the registration system has lower issuer cost, higher listing efficiency and less social resource consumption. Capital market can quickly realize the function of resource allocation.

The expected registration system

The "call for thousands" registration system has been steadily advancing in system engineering.

In the early 1990s, the Shanghai and Shenzhen Stock Exchanges were established one after another, and then a unified national security issuance audit system was established. It has gone through two stages: the administrative-led approval system and the market-oriented approval system. The approval system is a form between the approval system and the registration system. It has been implemented since 2001. It includes two stages: the "channel system" and the "sponsorship system". The sponsorship system finds, nurtures and finally screens out the suitable listed enterprises through the professional work of intermediaries.

The issuance system does need the escort of the regulatory system, but it also needs a more market-oriented development direction. Compared with the approval system, the registration system has lower issuer cost, higher listing efficiency and less social resource consumption. Capital market can quickly realize the function of resource allocation. Wu Shichun introduced that registration system has been advocated since 2005, and investors have been looking forward to it.

In 2013, the Decision on Several Major Issues of Comprehensive Deepening Reform, adopted by the Third Plenary Session of the Eighteenth Central Committee, clearly put forward the requirement of "promoting the reform of stock issuance registration system". On May 9, 2014, the State Council issued "Several Opinions on Further Promoting the Healthy Development of Capital Market" (i.e. "Nine Countries") again. Put forward "actively and steadily push forward the reform of stock issuing registration system", registration system reform is imperative.

In 2015, the State Council approved and forwarded the "Opinions on the Key Work of Deepening Economic System Reform in 2015" issued by the Reform Commission, emphasizing the need to implement the reform of stock issuance registration system; in November of the same year, the SFC announced that the IPO was restarted and the new stock issuance system was improved, which was regarded as the rudiment of the existing registration system and had experience in the transformation of the domestic capital market The significance of history.

Although Liu Shiyu, chairman of the Securities Regulatory Commission, said during the two sessions in 2016 that "the registration system needs a long time for research and demonstration, and can not advance alone", it has been interpreted by the outside market as that the registration system will be delayed, and two years later, the registration system will finally begin to pilot.

This great benefit has indeed made many investors and entrepreneurs excited.

The SFC said: resolutely implement, registration system has strict standards and procedures.

In response to General Secretary Xi's speech at the opening ceremony of China International Import Expo today, the SFC said: "The SFC Party Committee will resolutely implement it together with the Shanghai Stock Exchange Party Committee. The Securities Regulatory Commission (SFC) Party Committee deeply recognizes that the establishment of science and technology innovation board in the Shanghai Stock Exchange is a major reform measure to implement the strategy of innovation-driven and science and technology-powerful country, promote high-quality development, support the construction of Shanghai International Financial Center and Science and Technology Innovation Center, and improve the basic system of capital market, stimulate market vitality and protect the legitimate rights and interests of investors. Important arrangements. "

At the same time, it is pointed out that the purpose of KSB is to make up for the shortcomings of technological innovation in capital market services. It is an incremental reform of capital market. It will make more appropriate differential arrangements in terms of profitability, ownership structure and so on, so as to enhance the inclusiveness and adaptability of innovative enterprises.

In December 2015, the Standing Committee of the National People's Congress has authorized the implementation of the registration system of stock issuance, which has sufficient legal basis for the pilot registration system of scientific innovation board. Over the past few years, strict supervision of the capital market in accordance with the law and the corresponding system construction have created corresponding conditions for the pilot registration system. At the same time, the pilot of registration system has strict standards and procedures. In the process of accepting, auditing, registering, issuing and trading, more attention will be paid to the authenticity and comprehensiveness of information disclosure, the quality of listed companies, the stimulation of market vitality and the protection of investors'rights and interests.

The SFC will guide the Shanghai Stock Exchange to strengthen the appropriate management of investors in science and technology creation boards in terms of assets, investment experience and risk tolerance, aiming at the characteristics of innovative enterprises, and guide investors to participate rationally. Small and medium-sized investors are encouraged to participate in venture capital investment and share the development achievements of innovative enterprises through public funds.

The SFC and the Shanghai Stock Exchange will, in accordance with the relevant laws, regulations and policies of the state, make efforts to improve the relevant institutional arrangements of the science and technology innovation board, especially learn from the successful experience of the international community, improve the information disclosure of listed companies, and grasp the strength and rhythm of the pilot project. At the same time, we will continue to promote the entry of long-term incremental funds into the market, severely crack down on illegal acts such as fraudulent issuance, strengthen the responsibilities of intermediaries, and promote the steady and healthy development of the capital market.

The following is the keynote speech by President Xi Jinping:

Distinguished Heads of State, Heads of Government, Royal Representatives, Distinguished Heads of International Organizations, Distinguished Heads of Delegations, Distinguished Guests, Ladies and Gentlemen, Friends:

In May 2017, I announced that China will hold the China International Import fair from 2018. After more than a year of preparation and with the strong support of all parties, the first China International Import Expo has officially opened.

First of all, on behalf of the Chinese government and people, and in my own name, I would like to extend a warm welcome to all the distinguished guests. I would like to extend my sincere greetings and best wishes to all the friends from all over the five continents.

China International Import Expo is the first national-level exhibition with import as its theme in the world so far. It is a great pioneer in the history of international trade development. The holding of China's International Import Exposition is a major decision made by China with a view to promoting a new round of high-level opening-up and a major initiative taken by China to open its market to the world. This reflects China's consistent position in supporting the multilateral trading system and promoting the development of free trade. It is China's practical action in promoting the construction of an open world economy and supporting economic globalization.

This import


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