The GEM should also start to implement the registration system, and there is no limit on the ups and downs in the first five trading days after listing. The limit on the ups and downs in five trading days is 2%, which is basically the same as the trading system in science and technology innovation board, so some people began to discuss whether there is a possibility of merger between the GEM and science and technology innovation board. Let's focus on this issue below.
science and technology innovation board's companies are all listed on the Shanghai Stock Exchange. We can clearly tell by the fact that all companies listed on the Shanghai Stock Exchange start with this number. In order to distinguish them from other stocks, the previous value of companies listed in science and technology innovation board is "688", while those listed on the Growth Enterprise Market are all listed on the Shenzhen Stock Exchange, and the transaction code starts with "3", which is the biggest difference between the two. At that time, China set up two major exchanges to serve different types of companies. The Shanghai Stock Exchange mainly serves large-scale blue-chip or traditional industry companies, and we can find that most of the enterprises listed on the Shanghai Stock Exchange belong to blue-chip stocks, while the Shenzhen Stock Exchange mainly serves small and medium-sized companies or some emerging industry companies, so we find that the small and medium-sized board and the Growth Enterprise Market have been set up in the Shenzhen Stock Exchange, especially the small and medium-sized board and the Growth Enterprise Market are innovative technology companies.
At that time, the main purpose of the establishment of the state here was that Shanghai had a long history of development, especially in the Yangtze River Delta, and many enterprises developed for a long time, most of them belonged to some traditional large enterprises, while Shenzhen had a short history of development, and more of them began to develop gradually after the reform and opening up. In particular, most enterprises concentrated in the Pearl River Delta belonged to innovative small and medium-sized enterprises with better development vitality and growth. In order to serve enterprises in the two regions conveniently, the state dominated the service targets of the two major exchanges, and the Shanghai Stock Exchange served blue-chip enterprises.
Therefore, according to the problem of clients, when the state set up science and technology innovation board, it should consider listing in Shenzhen. After all, the Shenzhen Stock Exchange has more tests in serving small and medium-sized companies, especially those in the technology industry. On the contrary, the state has placed science and technology innovation board on the Shanghai Stock Exchange, mainly for the following reasons:
First, with the gradual development of China's economy, some high-quality small and medium-sized enterprises, especially those in the technology industry, have emerged in Shanghai, especially in the Yangtze River Delta. Driven by the reform and opening-up, Shenzhen enjoyed a dividend of normal support at the beginning of its development. A large number of enterprises developed rapidly, and many enterprises gradually grew into white horse and blue chip companies. The scale and development of the two regions are similar and gradually shrinking.
second, after more small and medium-sized innovative and growth enterprises went public in Shenzhen, more traditional blue-chip enterprises were listed in Shanghai Stock Exchange, which led to some obvious differences between Shanghai Stock Exchange and Shenzhen Stock Exchange, especially in the process of economic development, some emerging and innovative companies traded faster, and there were more such enterprises, while the number of companies in traditional industries was decreasing, which led to a great difference in the number of listed companies in the two places. Up to now, there are only about 1,6 A-shares in Shanghai Stock Exchange, including more than 1 listed companies in science and technology innovation board, while the number of listed companies in Shenzhen Stock Exchange has reached about 2,3. If this development trend is followed, the number of listed companies in Shenzhen Stock Exchange will be much higher than that in Shanghai Stock Exchange.
Many investors have gaps, and there is no problem. In fact, this will also lead to a series of problems. We all know that the main profit of the exchange is created by the trading volume of stocks. At present, the trading activity of small and medium-sized enterprises or innovative technology enterprises is much higher than that of traditional companies, which will seriously affect the development of the Shanghai Stock Exchange. What the country wants is that the two exchanges compete with each other, learn from each other, and protect A-share listed companies. Therefore, in order to change this situation, the country chose to put science and technology innovation board on the Shanghai Stock Exchange.
Third, due to the particularity of science and technology innovation board when it was first established, firstly, the registration system was implemented in science and technology innovation board. In the history of China, the registration system was blank and basically inexperienced. It was the first exploration of the registration system in China. If the exploration failed, it would cause the stock market to skyrocket and plummet, which would seriously damage the interests of investors and seriously restrict the reform and development of China's capital market. Listed companies with more services such as large blue chips are definitely more experienced in supervision and supervision, so when the country chooses which exchange, it feels that the Shanghai Stock Exchange is better than the Shenzhen Stock Exchange.
Through the analysis of the above factors, we can obviously feel that the probability is almost zero, which mainly exists in several aspects:
First, after the GEM has implemented the registration system, and the trading system is consistent with that of science and technology innovation board, the development of the two major exchanges will be constrained by each other, which is of great benefit to the later development of the exchanges. The listing of the Shanghai Stock Exchange chosen by science and technology innovation board fills the gap in serving small and medium-sized enterprises and innovative enterprises. After all, this kind of stock is both risky and innovative.
Once again, the GEM has started to implement the listing system and trading system consistent with that of science and technology innovation board, which is equivalent to making up the blank of Shenzhen Stock Exchange as a registered enterprise. The state is considering the gap between the two places and the gradual narrowing of their development direction.
Second, the current listing place has taken shape, especially the GEM has been established for nearly 1 years. Once the two companies are merged, there will be a lot of work and processes. science and technology innovation board is relatively good, and there are about 1 companies at present, while the number of companies listed on the GEM of Shenzhen Stock Exchange has been more than 8. After the merger, whether it is placed on Shanghai Stock Exchange or Shenzhen Stock Exchange, the transfer of transaction data, the transfer of shareholders' accounts, and the merger of data between the exchange and Zhongdeng Company are quite complicated.
Summary: Therefore, the two major exchanges have their own corresponding service enterprises, and they can learn from each other in the later development of the registration system, so as to better serve and supervise listed companies, promote the rapid development of China's capital market, and gradually mature the capital market. After gradual development, the differences between the two countries will be narrowed. It is basically impossible for them to merge.
The feet are strong, but the inches are short. The implementation of GEM registration is similar to that of science and technology innovation board, but whether it is possible to deduce the possibility of merger between the two boards, let's talk about the purpose, difference and possibility of merger of the two boards and see what the result is.
On April 27th, the Overall Implementation Plan for the Reform and Pilot Registration System of Growth Enterprise Market was reviewed and approved. Late that night, the China Securities Regulatory Commission and the Shenzhen Stock Exchange read a package of articles in succession. The GEM pilot registration system drew lessons from science and technology innovation board's reform experience. Therefore, the second GEM reform itself is established, not just out of thin air. The main purpose of the reform is to further promote the registration system to the whole capital market on the basis of science and technology innovation board's first trial. The GEM is a transitional testing ground, but the purpose of setting up two boards is far more than that.
? Let's look at the Growth Enterprise Market (also known as the second board market), that is, the second stock exchange market. It refers to the securities exchange market outside the main board that provides financing channels and growth space for small and medium-sized enterprises and emerging companies that are temporarily unable to go public. It is an effective supply to the main board market and occupies an important position in the capital market. The purpose of developing GEM in China is to provide more convenient financing channels for small and medium-sized enterprises and create a normal exit mechanism for venture capital. At the same time, it is also an important means for China to adjust its industrial structure and promote economic reform.
The purpose of establishing GEM can be summarized as follows: First, it provides financing channels for high-tech enterprises. Second, through the market mechanism, effectively evaluate the value of venture capital, promote the combination of knowledge and capital, and promote the development of knowledge economy. The third is to provide "export" for venture capital funds, disperse the risks of venture capital, promote a virtuous circle of high-tech investment, and improve the flow and use efficiency of high-tech investment resources. The fourth is to increase the liquidity of innovative enterprise shares, facilitate enterprises to implement equity incentive plans, and encourage employees to participate in enterprise value creation. Fifth, promote the standardized operation of enterprises and establish a modern enterprise system.
? Let's talk about science and technology innovation board. The reason why A-shares need science and technology innovation board reflects that the country has begun to attach importance to scientific and technological innovation enterprises and will focus on developing high-tech industries in the future. The goal and significance of its establishment are very clear: piloting in science and technology innovation board and promoting the registration system in the A-share market; Through the establishment of science and technology entrepreneurship, the financing problem of domestic science and technology enterprises will be solved. In addition, the establishment of science and technology innovation board will enable more small and micro innovative enterprises to get financing support and opportunities for rapid development, so that China can help China's scientific and technological enterprises to walk in the forefront of the world's scientific and technological fields by fostering innovative enterprises.
First of all, China urgently needs scientific and technological innovation and rejuvenating the country through science and technology. The establishment of science and technology innovation board is to solve the problem of financing difficulty and high cost for scientific and technological innovation enterprises and create a good development environment for them. Let these scientific and technological innovation enterprises make due contributions to the development of China's core science and technology.
? Secondly, science and technology innovation board should implement the registration system and connect with the international capital market. Now, science and technology enterprises can be listed as long as they meet the listing conditions and are recommended by exchanges or brokers. The regulatory authorities only need to supervise them during and after the event. At the same time, if the registration system is successfully piloted in science and technology innovation board, it will be gradually extended to other sectors, such as the Growth Enterprise Market (GEM) and the Small and Medium-sized Board (SME) which are similar to it. After gaining rich experience, it will shift its value to the main board market, so that other sectors of A shares can fully implement the registration system.
? Third, let more scientific and technological innovation enterprises join the capital market. In science and technology innovation board, the threshold for IPO of listed companies is even lower, and even loss-making enterprises can go public, which enables technological innovation companies that were not eligible to enter the GEM to join the capital market. Through the incubation of the capital market, these innovative high-tech companies have developed and contributed to the domestic economic growth.
meaning of the above purposes, it can be seen that the two sectors have their own purposes and shoulder different missions. So, what is the difference between GEM and science and technology innovation board?
? The first is plate positioning. The former mainly serves growth-oriented innovative and entrepreneurial enterprises and supports the photometric integration of traditional industries with new technologies, new industries, new formats and new models; The latter, facing the forefront of world science and technology, the main battlefield of economy and the major needs of the country, mainly serves the scientific and technological innovation enterprises that conform to the national strategy, break through key core technologies and have high market recognition
and the second is the listing conditions (general corporate financial indicators). The former: the net profit in the last two years is positive, and the accumulated net profit is not less than 5 million yuan; The estimated market value is not less than 1 billion yuan, the net profit in the latest year is positive and the operating income is not less than 1 million yuan; The estimated market value is not less than 5 billion yuan, and the operating income in the latest year is not less than 3 million yuan. The latter: the estimated market value is not less than 1 billion yuan, the net profit in the last two years is positive and the accumulated net profit is not less than 5 million yuan, or the net profit in the last year is positive and the operating income is not less than 1 million yuan; The estimated market value is not less than 1.5 billion yuan, the operating income in the latest year is not less than 2 million yuan, and the R&D investment meets certain conditions; The estimated market value is not less than 2 billion yuan, the operating income in the latest year is not less than 3 million yuan, and the net operating cash flow meets certain conditions; The estimated market value is not less than 3 billion yuan, and the operating income in the latest year is not less than 3 million yuan; The estimated market value is not less than 4 billion yuan, and it must meet the conditions that the main business or products need to be approved by the relevant state departments.
third, the listing conditions (financial indicators of red-chip enterprises) are the former: the estimated market value is not less than 1 billion yuan, and the net profit in the latest year is positive; The estimated market value is not less than 5 billion yuan, the net profit in the latest year is positive and the operating income is not less than 5 million yuan. The latter: the estimated market value is not less than RMB 1 billion; The estimated market value is not less than RMB 5 billion, and the operating income in the latest year is not less than RMB 5 million.
fourth, unprofitable enterprises. The former: In the early stage of the reform, all listed companies are profit-making enterprises. The latter: science and technology innovation board allows unprofitable enterprises to go public.
? Fifth, investment is the threshold. The former: the daily average assets in the securities account and capital account of individual investors are not less than RMB 1 trillion in the 2 trading days before the opening of the application authority, and they have participated in securities trading for more than 24 months. The latter: the assets in the securities account and capital account of individual investors are not less than RMB 5, per day in the 2 trading days before the opening of the application authority, and they have participated in securities trading for more than 24 months.
the sixth is the trading mechanism. The former: there is no price limit for the first five trading days after the IPO, and then the daily price limit is relaxed to 2%; Stock enterprises will be implemented simultaneously. The latter: there is no price limit within 5 days after listing, and then the price will increase or decrease by 2%
. The former: the number of single trading declarations for price limit declaration shall not exceed 1, shares, and the number of single trading declarations for market declaration shall not exceed 5, shares; Retain the current system arrangement that the minimum number of shares declared for each GEM is 1 shares. The latter: if science and technology innovation board stocks are bought and sold through price limit declaration, the number of single declaration shall be no less than 2 shares and no more than 1, shares; Where trading is declared through market price, the number of single declaration shall be no less than 2 shares and no more than 5, shares; When selling, the balance of less than 2 shares shall be declared for sale at one time.
eight is the follow-up mechanism. The former: only four types of companies with unprofitable, red-chip structure, special voting rights and high-priced issuance are subject to mandatory follow-up. The latter: the brokerage company uses its own funds to follow the investment through its subsidiaries, with a follow-up ratio of 2% to 5% and a lock-up period of 2 years.
nine is risk warning. The former: if the listed company's stock trading is warned of delisting risk, the word "*ST" will be prefixed to the stock abbreviation; Where other risk warnings are implemented, the abbreviation of the stock shall be preceded by the word "ST" to distinguish it from other stocks. The latter: if the listed company's stock is warned of delisting risk, the abbreviation of the company's stock shall be preceded by the word "*ST" to distinguish it from other stocks.
ten is the index of delisting market value. The former: for 2 consecutive trading days, the closing market value is less than 5 million yuan. The latter: for 2 consecutive trading days, the market value is less than 3 million yuan.
the eleventh is the expert consultation system. The former: Shenzhen Stock Exchange has set up an industry consulting expert database, which mainly provides professional consultation on the audit of issuance and listing. The latter: the Shanghai Stock Exchange has set up an advisory committee to provide professional advice, personnel training and policy suggestions to the Shanghai Stock Exchange.
? By comparison, the trading systems of the two sectors are obviously different in positioning, listing conditions, investor suitability and so on, which determines their different roles in the market. They are not substitutes, but complement each other, depend on each other and learn from each other. Is it possible to merge them?
? In short, Growth Enterprise Market and science and technology innovation board, each with its own strengths and needs, are two wings of the A-share market. Only when the two plates spread their wings shoulder to shoulder can the A-share market take off more quickly.