Experts see market for improvement in IPO system
The adoption of an A-share market-wide listing-based IPO mechanism, which was first proposed in the government’s annual work report this year, will further facilitate the technological innovation and the deepening of China’s capital market reform, said industry experts attending the two current sessions.
Jiang Yang, a member of the 13th National Committee of the CPPCC, the country’s top policy advisory body and former vice chairman of the China Securities Regulatory Commission, said the Chinese capital market is ready for the mechanism’s global adoption. record-based IPO in all respects. The mechanism should serve as a major driver for comprehensive capital market reform, he said.
First implemented at the “hardcore tech”-focused STAR market in Shanghai in July 2019, the mechanism was introduced at the ChiNext in Shenzhen, Guangdong Province, a year later. The Beijing Stock Exchange, which was launched on November 15 to support technologically innovative small and medium-sized enterprises, implemented the IPO mechanism from the start.
In an interview with Xinhua News Agency at the end of 2021, CSRC Chairman Yi Huiman said the full adoption of the registration-based IPO mechanism will be the focus. of the committee this year.
Yan Feng, a member of the CPPCC National Committee and chairman of Guotai Jun’an Securities, said the registration-based IPO mechanism will further enhance the openness and vitality of the capital market.
More qualified domestic and foreign institutions and investors will be attracted so that a healthy cycle is built, linking technology, industries and capital market, he said.
The country’s securities regulators will place more importance on information disclosure and investor protection with the implementation of the registration-based IPO mechanism, said Yang Chengzhang, member. of the CPPCC National Committee and Chief Economist of Shenwan Hongyuan Securities.
“Equity financing will take a larger share among all financing channels in China with the full adoption of the registration-based IPO mechanism. A fundamental change will take place in the capital market: with its expanded scale, optimized structure and perfected system,” he said.
Market resources can thus be more efficiently allocated to quality enterprises through the registration-based IPO mechanism, facilitating technological innovation and the development of emerging industries and high-end manufacturing, Zhu said. Jiandi, NPC Deputy and Chairman of BDO China Shu Lun Pan Certified. Chartered Accountants LLP.
But the disclosure of information by public companies should be further strengthened under such a mechanism. While facilitating market access, the delisting mechanism should be put in place at the same time. Investor demand should also be met when corporate financing needs are met, he said.
Fan Yun, NPC deputy and vice president of the Shanghai Federation of Industry and Commerce, said the “bottlenecks” in the process of perfecting the IPO mechanism based on the registration – for example, the protection of intellectual property rights – should be resolved as soon as possible. possible. Amendments should be made to related laws and regulations in time to facilitate the wider adoption of the mechanism, she said.
The A-share market has recently come under downward pressure, with the benchmark Shanghai Composite Index losing 1.13% on Wednesday, slipping for the third day in a row. The Shenzhen Component Index, or ChiNext, also slipped.