1. Definition of the registration system: The registration system is the so-called public management principle. It is essentially a financial disclosure system for issuing companies, represented by the U.S. federal securities laws.

It requires companies issuing securities to provide all information about the securities issuance itself and related to the securities issuance, with the prospectus as the core.

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 on which to judge the essential requirements of securities in order to make investment decisions. Securities registration cannot serve as a protective 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 not reasonable.

2. The difference between the registration system and my country’s current approval system.

my country's current stock issuance system is an approval system. The regulatory authorities not only impose high disclosure requirements on the financial statements and other public information of companies to be listed, but also conduct comprehensive inspections on the issuer's asset quality, investment value, and social benefits. The China Securities Regulatory Commission and the Issuance Review Committee review and provide feedback on the company's listing application, and finally make a decision on whether to approve the IPO of the company to be listed.

At present, the smoothest listing takes about a year. For most companies, it usually takes two to three years or even longer from restructuring, to passing the review by the China Securities Regulatory Commission, to issuance and listing.

In most registered IPO markets, regulatory agencies focus on the completeness and authenticity of disclosed information when reviewing companies to be listed. They do not judge the profitability of the company, nor do they need to provide or disclose profit or cash flow forecasts. On the basis of information disclosure,

Investors can judge the value and risk of a company by themselves, so that pricing can better reflect the supply and demand of new shares among investors in the market.

At the same time, because there are fewer factors involved such as asset quality, the overall listing speed is also faster.

In the U.S. market, it generally takes 3-4 months for an IPO listed company to submit an application to be successfully listed, and in some cases it may take 6 months.

In Japan, it takes about 3-4 months for a company to submit a listing application to the final public offering.

That is to say, if a registration system is implemented, listing will be much easier than the current listing.

3. The impact of the registration system on the stock market.

1) Impact on shell resources: A-shares have a unique culture of speculating on junk stocks. The idea is that stocks with junkier financials have more room for imagination. The reason for this problem is that listing requires an extremely long wait and cumbersome review.

, thus making listing qualifications very scarce.

Many companies have found other ways to acquire companies with small market capitalization and serious losses to achieve the purpose of backdoor listing.

Did you not see that Century Cruises has reached its 19 daily limit, and the cumulative increase has reached six times? It is one "Century Cruises" after another that gives Shell Resources room for survival.

After the registration system is fully implemented, shell resources will lose their scarcity, major shareholders will be less willing to protect their shells, investors' behavior of speculating on junk stocks will also change, and the value of shell resources will gradually decline.

2) Impact on overall valuation: The introduction of the registration system will fundamentally change the supply and demand relationship in the Chinese stock market and will also change the valuation system of A-shares.

The current average price-to-earnings ratio of the Shanghai Stock Exchange is 17.48 times, the average price-to-earnings ratio of the Shenzhen Stock Exchange's small and medium-sized boards is 64 times, and the GEM's is 107 times.

The reason for this problem is also that the entry threshold for the stock market is high. There are only 2,800 companies in more than 20 years. The rapid growth of social wealth has left money with no place to go. The increasing funds flowing into the stock market conflict with the scarce supply, leading to small and medium-sized enterprises.

The valuation is on the high side.

After the registration system is launched, the number of stocks available for investors to choose from will be greatly increased, and market valuations are expected to gradually return to rationality.

4. Investment opportunities under the registration system: The China Securities Regulatory Commission has clearly stated that the implementation of the registration system is suspended. It is uncertain when it will continue to be implemented. However, the opportunities under the registration system are mainly some venture capital concept stocks: 1) Luxin

Venture Capital (600783) Company is the only pure venture capital stock in the two cities. It has successively invested in Shandong Peninsula Blue Economic Investment Fund, Yellow River Delta Investment Fund, etc., involving marine equipment, new energy, new materials, electronic information and other fields.

2) Shenzhen Innovation Investment Group (registered capital 1.6 billion yuan), which Dazhong Utilities (600635) holds 13.93% of the shares, is China’s largest local venture capital institution with the strongest investment capabilities. The company holds Shanghai Hangxin Investment Management Co., Ltd.

16.13% of the company, with a registered capital of 285 million yuan.

The company holds 20% of the shares of Shanghai Xingye Venture Capital Co., Ltd., with a registered capital of 200 million yuan. The company mainly makes equity investments in PRE-IPO companies with listing potential.

3) Zhangjiang Hi-Tech (600895) will further transform from a park development service provider to a technology leader and industrial investor. In addition to introducing strategic partners and cultivating emerging strategic industries, the company plans to gradually increase the proportion of financial and technology investment.