Fang Xinghai’s A-share reform ideas promote the implementation of the science and technology board and the pilot registration system as soon as possible
On January 12, Fang Xinghai, Vice Chairman of the China Securities Regulatory Commission, delivered a speech while attending the Twenty-third China Capital Market Forum in Beijing, explaining in detail the statement of the Central Economic Work Conference on capital market reform, which aroused great market attention.
”The market-oriented reform of the capital market is urgently required, but it cannot be rushed.
We are glad that from the speeches of the leaders of relevant supervisors, we can perceive that the senior management has a clear idea of capital market reform, considers the long-term, and is steadily advancing.
When an executive of a securities firm was interviewed by a reporter from the International Financial News, it was difficult to hide the opposition and expectations in his heart.
A person in charge of the Beijing Sales Department of a futures company said: “The leaders of the Securities Regulatory Commission pointed out in the speech that stock index futures and thought that the current liberalization of stock index futures trading measures was not enough, and that it would be further liberalized, and suggested that the limit of daily limit for new stocks be lifted.
These are the performance tools of market transaction volume and transaction activity, and they all point to the market-oriented reform of the capital market.
“So, what are the specific requirements of the Central Economic Work Conference on capital market reform?
How does Fang Xinghai, the vice chairman of the Securities and Futures Commission, interpret it?
Background From December 19 to 21, 2018, the Central Economic Work Conference was held in Beijing Antiques.
The part of the communiqué on accelerating the reform of the economic system specifically mentions capital market reform: the capital market has a full-fledged role in financial operations, and it is necessary to deepen reform to create a standardized, transparent, open, and dynamic,Adequate capital markets, improve the quality of listed companies, improve the trading system, guide the entry of more medium and long-term funds, and promote the establishment of a science and technology board on the Shanghai Stock Exchange and the trial registration system as soon as possible.
1 The capital market plays a role in the financial operation.
”I think that reforms to restructure capital markets in the future will play a leading role in financial reforms.
The reform of the financial system is the thing of the morning glory in the capital market.
Fang Xinghai said.
Fang Xinghai talked about his understanding from the macro and micro levels.
He believes that from a macro perspective, this means that the capital market has its most critical role in the financial system, otherwise it will not affect the whole body at the same time. In addition, from a micro perspective, it will enter the development stage and the innovation-driven stage.There must be equity investments that are more capable of absorbing risks to promote further economic growth at this stage.
Both macro and micro, there is an urgent need to develop the capital market, so that equity financing plays a more important role in the entire financial system.
2 We must deepen reforms to create a standardized, transparent, open, dynamic, and profitable capital market.
In this regard, Fang Xinghai further refined the detailed explanation, and also revealed the reform ideas and directions of the capital market, including the study of removing the 44% limit limit of the first day price of new shares, and stock index futures should be relaxed.
”Normative, transparent, we used to say that.
However, for the first time, an open, dynamic and competitive capital market was so clearly presented at a central conference.
Fang Xinghai said.
He adjusted his understanding of the three important adjectives “open,” “vigorous,” and “controversial” in detail with examples, and an example actually corresponds to corresponding reform measures.
Regarding “openness”, Fang Xinghai said that the net inflow of foreign countries has increased substantially. “Last year, the net inflow population reached 300 billion U.S. dollars. This year I expect the inflow of foreign exchange population to increase. 600 billion can be expected.
At the same time, Fang Xinghai also disclosed that there are now some large international investment banks with US, Japanese, and European capitals in the process of obtaining 51% equity. After three years, in fact, equity financing will reach 100%.;; Recently, Dow Jones also announced its withdrawal from A-shares, which will bring about 15 billion US dollars into A-shares; continue to open the futures market to the outside world, so that China’s futures prices have a very large global influence.
Regarding “dynamics” and “interests”, Fang Xinghai said that capital market participants must be very full, transactions are very active, and pricing is reasonable.
Regarding “dynamic”, Fang Xinghai has two examples to illustrate: it is proposed to cancel the 44% limit limit on the first day of listing of new shares, and further relax stock index futures trading measures.
He believes that the current relevant regulations will definitely affect the trading vitality of the market.
”Some shocks from outside, our capital market will shake a little, rise and fall a little, but it will return to normal immediately. This is called profitable.
Fang Xinghai put forward his own understanding of the market. The most important point is that the pricing is reasonable.
Regarding reasonable pricing, he believes that prices are not what the regulatory authorities say. There must be various means and tools to allow the market to fully play, so that the prices set are reasonable.
At present, there are very few tools, so the CSRC has stepped up the introduction of a variety of tools that can be used by both long and short sides.
3 Improve the quality of listed companies and improve the trading system to guide more medium- and long-term funds into the market.
”In 2018, there was a strange phenomenon. Domestic investors were afraid to buy stocks, and foreign investors desperately bought Chinese stocks.
how to explain?
“Fang Xinghai pointed out,” It is the investment fund 武汉夜生活网 structure that has played a role.
“Because domestic investors, whether retail investors or institutions, must be regarded as profit or loss in the end, the market continues to judge whether it has reached the bottom in the downward phase of the market and is afraid to enter without reaching the bottom.
The investment period of foreign investors is 3 to 5 years, or even more. Judging from the general trend, the Chinese stock market is undervalued, and the Chinese economy is optimistic in the long run. It should not be at such an estimated level. At the same time, Fang Xinghai said that he would do his best to continue to introduce a large amount of international long-term funds into the Chinese stock market, including entering the Chinese futures market.
4 Promote the implementation of the science and technology board and the pilot registration system as soon as possible.
Some brokerage professionals said that promoting the implementation of the science and technology board and the pilot registration system has become the most important thing in the capital market.
”Here is a keyword everyone should pay attention to, which is ‘landing as soon as possible’.
“In his speech, Fang Xinghai highlighted the word” as soon as possible “.
Fang Xinghai finally stated that the CSRC is guiding and cooperating with the Shanghai Stock Exchange to work day and night on the basis of fully listening to market opinions and the opinions of various ministries and commissions to complete this very important and glorious task as soon as possible.
While explaining the requirements of the Central Economic Work Conference on capital market reforms, Fang Xinghai’s speech directly responded to specific requirements through actual reform measures. If these reform measures are merged one by one, it will surely inject “heart force” into the capital market.
”In fact, the regulatory authorities have been closely planning the continuous deepening of reforms in the capital market.
As a specific player in the market, we also call for further reform.
In my opinion, first of all I am very pleased to see that reform is just around the corner, and secondly I feel that such reform can come earlier and be transformed!
The executives of a medium-sized brokerage firm in Beijing referred to the reform measures pointed out in the above speech, and their excitement overflowed with words.
(International Finance News reporter Liu Xinyu)