Recently, the central economic work conference proposed to “fully implement the stock issuance registration system”. What does that mean? What impact will it have on a shares? What investment opportunities are there? Securities companies have interpreted this one after another.

Founder Securities Co.Ltd(601901) believes that every registration system reform in Shanghai and Shenzhen will set off a rising wave of steps on the market. The reform of the registration system is systematically beneficial to the A-share market. According to the historical law, the market is expected to rise significantly, and the market high point in 2022 is expected to be around 4200.

Some securities companies believe that the “full implementation of the stock issuance registration system” will enhance the attractiveness of the market to domestic and foreign funds, especially long-term institutional funds. In addition, some securities companies believe that under the background of the overall strength of the stock market and the full implementation of the registration system, the opportunities of securities companies’ stocks deserve attention.

Many securities companies said that the comprehensive registration system is expected to be implemented with a high probability in 2022.

registration system helps A-Shares to step up

Founder Securities Co.Ltd(601901) is optimistic about the positive impact of the comprehensive registration system on a shares.

Founder Securities Co.Ltd(601901) said that reform is still the “keyword” of the A-share market next year. The reform of A-share market registration system is carried out in a steady way, that is, the reform of Shanghai and Shenzhen stock markets is divided into “three steps”, and the reform of A-share market is completed in “four stages”. The first step and stage is to set up a science and innovation board in Shanghai stock market in 2019 and pilot the registration system, which is an “incremental” registration system reform. The second step and the second stage is the pilot registration system on Shenzhen GEM in 2020, which is the reform of “increment + stock” registration system. The third stage is the establishment of the Beijing stock exchange and the implementation of the registration system in 2021. It is a “specialized and new” registration system reform. Although the market value is small, it has laid a solid foundation for the implementation of the registration system reform on the A-share main board.

Every registration system reform in Shanghai and Shenzhen stock markets will set off a rising wave on the stage. In 2019, the Shanghai stock market implemented the “incremental” registration system reform of the science and innovation board. The volume was small, and the market realized the first rising wave. The market rose 34.75% from the low point to the high point. In 2020, Shenzhen implemented the “increment + stock” registration system reform of the gem, which was much larger than the science and innovation board. The market realized the second rising wave, and the market rose 41% from the low point to the high point.

In 2022, the “comprehensive registration system” reform will be implemented in the A-share market, and the financial supply side reform represented by the “registration system” will be completed. The A-share market will usher in the “third wave”. The market value of the main board accounts for about 2 / 3 of the total market value of a shares, and the main board is dominated by large market value blue chips. Once activated, the released energy will have an impact on the market trend, This is why Founder Securities Co.Ltd(601901) is full of expectations for the market in the first half of 2022. The reform of the registration system is systematically beneficial to the A-share market. According to the historical law, the market is expected to rise significantly. According to the expectation of Founder’s annual strategy report “rising and falling tide”, the market high in 2022 is expected to be around 4200.

The securities sector is expected to benefit from the comprehensive registration system. But Founder Securities Co.Ltd(601901) also stressed that when the comprehensive registration system reform is implemented, that is, when the A-share financial supply side reform is completed, it will also mean that the “reform cow” will enter a climax. After the climax, it was not the end of the bull market. It was the slow bull halftime of the ten-year “golden cycle” of A-Shares to prepare for the bull market in the second half of a shares. After full preparation, we will usher in the second half of the bull market. The second half of the bull market is a “transition bull”, and the mode of operation is still a slow bull.

the registration system improves the attraction of A-Shares to domestic and foreign funds

Many securities dealers have mentioned that the comprehensive registration system will attract more domestic and foreign funds to invest in a shares.

Ping An Securities believes that to develop direct financing in the capital market, the meeting proposed for the first time to “fully implement the stock issuance registration system”, the enterprise financing channels will be more unblocked, and the continuous improvement of the capital market ecology will enhance the attraction of the market to domestic and foreign funds, especially long-term institutional funds.

AVIC Securities said that in terms of capital market reform and development, the meeting proposed to “grasp the pilot of comprehensive reform of market-oriented allocation of factors and fully implement the stock issuance registration system”, which means that the registration system reform will probably spread out in the whole market next year, and the capital market reform will take another important step forward. The reform of registration system is an important part of the reform of market-oriented allocation of factor resources. Increasing the proportion of direct financing is the direction of China’s financing structure adjustment. Matching the needs of scientific and technological innovation and development, the rapid promotion of comprehensive registration system reform reflects the importance attached to the A-share market.

On the one hand, more high-quality innovative enterprises are expected to accelerate the pace of development by entering the A-share market for financing, which is conducive to the acceleration of China’s economic structure adjustment; On the other hand, the optimization of the industry structure of the A-share market will also be accelerated, and the proportion of emerging industries will continue to increase, providing more investment opportunities for the market, which is conducive to attracting domestic and foreign capital and continuing to increase the allocation of the A-share market.

Southwest Securities Co.Ltd(600369) believes that the meeting proposed that “fully implementing the stock issuance registration system” and “expanding high-level opening to the outside world and promoting institutional opening” will be the key tasks of the capital market in 2022. At present, except the main board of Shanghai and Shenzhen, the domestic stock market has realized the stock issuance registration system. It is difficult to implement the registration system on the main board. On the one hand, there are 190 million investors on the main board, which is 22 times that of the science and innovation board and 4 times that of the gem; On the other hand, the main board also involves large-scale investment products, which also has a great impact on the landmark index.

Western Securities Co.Ltd(002673) said that the registration system has been implemented successively on the science and innovation board and the gem, and the Beijing stock exchange has officially opened in November 2021. Next year, it is expected to orderly and steadily promote the registration system reform of the main board of Shanghai and Shenzhen Stock exchange on the basis of summarizing the experience of registration system reform. By the end of October 2021, the stock of direct financing had reached 90 trillion yuan, accounting for about 29% of the stock of social financing scale. From 2019 to 2021, the IPO funds raised by Shanghai and Shenzhen stock markets were 253.2 billion yuan, 480.6 billion yuan and 477.8 billion yuan respectively.

brokerage stock opportunities deserve attention

Some securities companies also believe that the comprehensive registration system will bring opportunities to securities companies.

Zheshang Securities Co.Ltd(601878) said that the reform has been continuously promoted. From June 2019 to November 2021, the science and innovation board, the gem and the Beijing stock exchange have been established or reformed successively, and the registration system has been piloted at the same time. In March 2021, the outline of the 14th five year plan proposed to fully implement the registration system, establish a normalized delisting mechanism and improve the quality of listed companies. In April 2021, the main board of Shenzhen Stock Exchange merged with the small and medium-sized board, laying the foundation for the comprehensive registration system. On December 10, 2021, the central economic work conference proposed to fully implement the registration system, and the long-awaited comprehensive registration system is expected to be implemented next year. It can be seen from a series of policies that the capital market reform has been continuously promoted since 2018, and the prosperity of the securities industry is high.

The comprehensive registration system is conducive to improving the issuance efficiency, increasing the proportion of direct financing, and bringing performance increment to the investment banking business of securities companies. The reform of registration system puts forward higher requirements for the underwriting ability, pricing ability and sales ability of securities companies. The head securities companies with rich project experience and sufficient talent reserves benefited more. The income concentration of investment banking business increased from 29% in 2019 to 31% in the first half of 2021. At the end of the third quarter of 2021, the IPO underwriting scale Cr5 exceeded 50%. It is judged that the leading investment banks will continue to benefit from the dividends of the registration system reform in the future.

Huaan Securities Co.Ltd(600909) believes that under the background of the overall strength of the stock market and the full implementation of the registration system, the opportunities of securities companies deserve attention.

Guosheng Securities said that the economic work conference mentioned the full implementation of the stock issuance registration system, and the capital market reform with the registration system as the core is expected to accelerate in 2022. It is expected to promote the registration system reform of the main board of Shanghai and Shenzhen Stock Exchange and increase the proportion of direct financing on the basis of summarizing the experience of the registration system reform of science and innovation board, gem and Beijing stock exchange. For securities companies, the contribution of investment banking revenue is expected to increase, and the head securities companies have more significant advantages in projects and talent reserves, and the policy side is expected to continue to benefit from the dividend of registration system reform.

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(brokerage China)