The comprehensive registration system will be implemented in 2021.

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, which lowers 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.

Penalties for intermediaries have been strengthened; and there are supporting rules to 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.

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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. Therefore, 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.

Laws and Regulations "Securities Law of the People's Republic of China" Article 2 Within the territory of the People's Republic of China, this law shall apply to the issuance and trading of stocks, corporate bonds, depositary receipts and other securities recognized by the State Council in accordance with the law;

For matters not provided for in this law, the provisions of the Company Law of the People's Republic of China and other laws and administrative regulations shall apply.

This Law shall apply to the listing and trading of government bonds and securities investment fund shares; if other laws and administrative regulations provide otherwise, such provisions shall apply.

The administrative measures for the issuance and trading of asset-backed securities and asset management products shall be prescribed by the State Council in accordance with the principles of this Law.

If securities issuance and trading activities outside the territory of the People's Republic of China disrupt the market order within the territory of the People's Republic of China and harm the legitimate rights and interests of domestic investors, they shall be handled in accordance with the relevant provisions of this Law and held legally responsible.

Article 10 If an issuer applies for the public issuance of stocks or corporate bonds convertible into stocks and adopts underwriting methods in accordance with the law, or if it publicly issues other securities for which the sponsor system is stipulated in laws and administrative regulations, it shall hire a securities company to serve as the sponsor.

Sponsors shall abide by business rules and industry norms, be honest and trustworthy, be diligent and responsible, conduct prudent verification of the issuer's application documents and information disclosure materials, and supervise the issuer's standardized operations.

The management measures for sponsors shall be prescribed by the securities regulatory authority of the State Council.