#AutumnGoodTime# The Beijing Stock Exchange seems to be just a policy change in the trading market, but in fact the intensive policy details behind it have been rapidly implemented. At present, it seems that the Beijing Stock Exchange may indeed bring changes to the entire investment banking business, consulting business,

Investment business and training business have brought about major changes.

This depth of influence may not have been available on the Science and Technology Innovation Board at the time. We can deduce the specific reasons from the following logic.

01 Behind the Beijing Stock Exchange, there are larger companies covering the market depth.

The Science and Technology Innovation Board is the rapid capitalization of China's new technology companies, while the Beijing Stock Exchange is the main battlefield for all small and medium-sized enterprises and specialized new growth companies. These are two orders of magnitude of enterprise groups.

The biggest policy change of the Beijing Stock Exchange is to lower the securitization threshold in China from 1 billion to 200 million, which means that the depth of the market has been instantly enlarged by several orders of magnitude.

If calculated based on the business scale corresponding to a net profit of 20 million, at least 2,000 companies on the New Third Board will meet the standards in the next three years. Based on the 40 million threshold assessment, there will be at least more than 1,000 companies, which means that an independent capital ecology will emerge on the New Third Board.

and trading ecology.

For example, among public funds, there are independent NEEQ researchers and fund managers, market makers, brokerage sales departments, opinion leaders, small circles of professional investors, opinion leaders for retail investors, and specialized service agencies for the NEEQ.

There may be nearly 10,000 employees here.

02 What does the securitization threshold of 200 million market capitalization mean?

This covers China’s venture capital market after Series B, China’s regional equity center markets at the provincial level, and Sun companies, subsidiaries of state-owned enterprises and central enterprises.

In other words, the radiation range of the New Third Board + Beijing Stock Exchange is at least 20,000-30,000 companies. This also means that the depth of enterprise-level intermediary services and investment banking services has been rapidly expanded, and it is even a solution to China's primary private equity market.

The barrier lake problem of investment is the main force. It is conservatively estimated that 8 trillion yuan may be trapped in this market.

03 In the short term, the Beijing Stock Exchange has more funds than stocks; in the medium term, there are more stocks than funds; in the long term, funds are clustered at the top.

The Beijing Stock Exchange estimates that within one year, there will only be about 2-300 companies; however, there are currently 7 million households that meet the conditions for opening an account, and 1.3 million households have already opened an account.

Moreover, the Beijing Stock Exchange will have restrictions on holding reductions at the beginning, which means that short-term liquidity will be worry-free, but it will not continue for too long. For example, in 2022 or 2023, if there are more and more listed companies, the liquidity will become more and more concentrated.

in leading companies.

The Beijing Stock Exchange will be "stratified" again, and this stratification will occur spontaneously in the market. Just like the current A-share market, 3 billion and 30 billion are two capital markets.

In the future, it may seem that it will be easier to go public, but the actual situation is that the threshold for liquidity has been raised. In the future, only the top players in the market will receive excess capital dividends.

04 This means that for intermediary service agencies, grabbing top customers is a "Shangganling" battle, which is of great strategic significance.

For enterprises, whether they can obtain excess dividends from their own capital is the key to industrial competition. In essence, it is a matter of who controls the "pricing power."

Is the market value pricing power of a company in the hands of investment institutions or in your own hands?

This is the core proposition of capital management of listed companies. This challenge is very big for listed companies. This problem is not limited to the Beijing Stock Exchange, but is the same for all A-share companies.

In essence, it is the process of enterprises building their own capital capabilities.

05 The NEEQ investment banking business of securities firms is undergoing profound changes, but most brokers are aware of it but have not taken action.

A typical feature is that the prospectus materials of the Beijing Stock Exchange have actually been simplified and appear to be less difficult, but in fact the main contradiction is shifting.

The core value of investment banks is rapidly changing from how to submit materials for approval in compliance with regulations to how to make customers valuable?

But for investment banks, this problem cannot be solved. It is a matter of division of labor within the investment bank's internal organization. The investment bank department manages the approval of the sponsorship, and the capital market department manages the completion of the issuance. This inevitably determines that each one manages one. The boss can only manage the value of the enterprise after it is listed, and the directors

The secret is out of control.

However, the organizational division of labor within the Beijing Stock Exchange's business within a securities firm is closed-loop. Underwriting and underwriting are all in the third board department, which even has independent research capabilities and merger and acquisition capabilities. The third board department in some securities firms is equivalent to a small securities firm. For this kind of

For securities firms, the current environment is actually a major opportunity, but it also poses a greater challenge to business capabilities.

I also talked about this issue when I was doing internal training with the third-board departments of several domestic securities firms.

Either there is awareness but no ability, or there is no awareness and no action.

Under the background of the registration system, the core value of investment banks is changing from the fragmented sponsoring ability to the ability to realize the pricing power of "enterprise value".

Essentially, this is a new type of investment banking capability.