According to the current rules and regulations, the main board still implements a 10% increase or decrease, but since it has begun to implement a comprehensive registration system, there is a high probability that the main board will also implement a registration system in the future.
If the main board implements a registration system, then the change in the main board's price limit from 10% to 20% is also in line with the trend.
And since ancient times, the rise and fall of the trading market should be uniform, but it is still in the transition stage.
Full opening of the registration system: Against the background of the current epidemic's significant negative impact on the economy, promoting the reform of the GEM registration system will help promote more high-quality emerging technology companies to enter the capital market and further enhance the capital market's ability to serve the real economy.
The registration system, that is, the securities issuance registration system in the securities market, is a system for companies to issue securities and go public, which is different from the approval system.
It is characterized by fast in and fast out: under the registration system, the securities issuance review agency only conducts a formal review of the registration documents and does not make substantive judgments, that is, lowering the listing threshold; at the same time, it is supported by intermediaries, that is, securities firms, who examine companies preparing to be listed and promptly detect cheating.
Intermediaries have strengthened penalties and are accompanied by rules that lower the delisting threshold.
The approval system has many procedures and many conditions for listing and delisting. For example, high-quality emerging companies such as Alibaba, JD.com, and Pinduoduo have difficulty listing domestically and can only go public overseas. The delisting process for some listed companies with poor performance is very difficult.
long.
The change from the approval system to the registration system will lead to major changes in the market ecology. High-quality companies will be easy to go public and low-quality companies will be easy to delist. When delisting, the funds locked up at a high level cannot be expected to be released in the next bull market, so the ability requirements of retail investors have increased.
, it will eliminate some retail investors and expand the scale of institutional funds and fund companies in the market.
On March 1, 2016, the State Council’s authorization for the registration system reform will be officially implemented.
On October 9, 2020, the State Council issued the "Opinions on Further Improving the Quality of Listed Companies" proposing to "comprehensively implement and implement the securities issuance registration system step by step and support the listing of high-quality companies."
The securities issuance registration system means that securities issuance applicants disclose all information and materials related to securities issuance in accordance with the law, formulate legal documents, and submit them to the competent authority for review. The competent authority is only responsible for reviewing whether the information and materials provided by the issuance applicant have been fulfilled.
A system of information disclosure obligations.
Its most important feature is that under the registration system, the securities issuance review agency only conducts formal review of registration documents and does not make substantive judgments.
The purpose of securities issuance registration is to provide investors with formal information based on judging the substantive requirements of securities in order to make investment decisions. Securities registration cannot serve as a protection umbrella for investors from losses.
If the disclosure method is appropriate, the securities regulatory agency shall not refuse registration on the grounds that the price or other conditions of the issuance of securities are unfair, or the company's prospects proposed by the issuer are unreasonable.
The differentiated registration system means that when an issuer is preparing to issue securities, it must submit all kinds of information disclosed in accordance with the law to the securities regulatory authorities in a complete, true and accurate manner and apply for registration... for formal review. As for the nature of the issuer's business, the issuer's financial resources
, quality and development prospects, issuance quantity and price and other substantive conditions are not considered as issuance review requirements... No value judgments are made.
After the application documents are submitted and the statutory period has elapsed, if the competent authority has no objections, the application will automatically take effect.
"The approval system means that when issuing stocks, the issuer must not only fully disclose the true status of the company, but also must meet the necessary conditions stipulated by relevant laws and securities management authorities;... it must also conduct a substantive review of whether the issuer meets the issuance conditions.
"It can be seen from this that the difference between formal review (registration system) and substantive review (approval system) lies in whether the review agency makes a judgment on the value of the company, which is the criterion for dividing the registration system and the approval system.
Substantive review has two meanings: one refers to the administrative agency’s verification and judgment on the authenticity of the disclosed content, and the other refers to the administrative agency’s judgment on the investment value of the disclosed content.
When defining the approval system in stock issuance, the second meaning of substantive review is generally taken, which is to judge the investment value and risks of company securities.