With the steady progress of the registration system, the amount of direct financing in the A-share market reached a new high.
Recently, the National Bureau of statistics released the statistical bulletin of the people’s Republic of China on national economic and social development in 2021 (hereinafter referred to as the statistical bulletin). In 2021, the A-shares of Shanghai and Shenzhen exchanges raised 1674.3 billion yuan, an increase of 132.6 billion yuan over the previous year.
481 A-shares were listed on the Shanghai and Shenzhen stock exchange for the first time, raising 535.1 billion yuan, an increase of 60.9 billion yuan over the previous year, including 162 shares on the science and innovation board, raising 202.9 billion yuan; The Beijing stock exchange publicly issued 11 stocks, raising 2.1 billion yuan. The refinancing of A-Shares in Shanghai and Shenzhen Stock Exchange (including public placement, private placement, allotment of shares, preferred shares and convertible bonds into shares) was 1139.1 billion yuan, an increase of 71.7 billion yuan.
In 2022, the reform of “fully implementing the stock issuance registration system” is expected to be officially implemented, and the financing amount of A-Shares may reach a new high. Earlier, the regulatory authorities have repeatedly voiced their views on the reform of the comprehensive registration system – the central economic work conference at the end of 2021 once again made it clear to fully implement the stock issuance registration system. Yi Huiman, chairman of the CSRC, also said in an interview that “the conditions for the full implementation of the registration system have been gradually met”.
“The promotion of the comprehensive registration system is an important symbol of the maturity of China’s securities market. At present, the overall operation of the registration systems on the science and innovation board and the gem is stable, which provides valuable experience for comprehensively promoting the reform of the registration system. At present, the time to promote the comprehensive registration system is ripe.” Chen Li, chief economist of Chuancai securities, said bluntly.
a-share financing reaches a new high
It has been more than two years since the pilot registration system reform of the A-share market. The whole process and chain operation mechanism of China’s capital market has been continuously optimized, the market-oriented mechanism has played a greater role, the convenience of stock issuance and listing has been continuously improved, the information disclosure has been more transparent, and the delisting system has also been improved.
In 2021, the financing amount of A-share market reached a new high. According to the statistical bulletin, A-Shares of Shanghai and Shenzhen Stock Exchange raised 1674.3 billion yuan in 2021, an increase of 8.6% over the same period last year.
The registration system reform only retains the basic qualification and compliance conditions necessary for enterprises to publicly issue shares, and relaxes the hard conditions such as profit indicators. The overall listing standards are also more inclusive. For example, unprofitable enterprises, enterprises with red chip structure and differentiated voting rights can land in China’s capital market. Under the conditions of diversified and inclusive issuance and listing, “hard technology” enterprises and innovative and entrepreneurial enterprises have also been given more listing opportunities, bringing more fresh water.
According to the statistical bulletin, 162 stocks were listed on the science and innovation board in 2021, raising a total of 202.9 billion yuan. The 21st Century Business Herald reporter noted that the newly listed enterprises mainly come from hard science and technology fields such as semiconductor, biomedicine and high-end manufacturing. While relying on the rapid growth of the capital market, they have also brought rich profits to investors.
According to the reporter’s incomplete statistics, up to now, a total of 363 listed companies on the science and innovation board have disclosed the performance express in 2021. Among them, the net profits of 229 companies attributable to shareholders of listed companies increased year-on-year, accounting for 63.09%.
Specifically, the average operating revenue of 363 listed companies on the science and innovation board that have disclosed the performance express is about 1.981 billion yuan, and the average in the same period of last year is about 1.448 billion yuan, a year-on-year increase of 36.81%; The average net profit attributable to shareholders of listed companies was about 215 million yuan, with an average of about 128 million yuan in the same period last year, a year-on-year increase of 67.97%.
In addition, nine listed companies on the science and Innovation Board disclosed their annual reports in 2021, and five of them issued dividend plans.
According to the annual report of Shanghai Bright Power Semiconductor Co.Ltd(688368) 2021 with the highest dividend ratio, the company realized a net profit of 677 million yuan attributable to shareholders of listed companies, an increase of 883.72% year-on-year, and plans to distribute a cash dividend of 40 yuan (including tax) for every 10 shares to all shareholders. As of December 31, 2021, the total share capital of the company is 62.03 million shares. Based on this calculation, the total cash dividend to be distributed is 248 million yuan (including tax), accounting for 36.63% of the company’s net profit attributable to shareholders of Listed Companies in 2021.
2021 is also the year of the successful implementation of the Beijing stock exchange. On November 15, 2021, the Beijing stock exchange was officially opened. As of February 28, 2022, it has been in operation for more than three months, and the number of listed enterprises has reached 35, raising a total of 6.014 billion yuan.
At present, the listed companies of Beijing stock exchange have also entered the preparation period of annual report in 2021, and the performance forecasts of 13 enterprises in 2021 are also released one after another, all of which are expected to achieve stable performance growth.
Among them, the pre added Wang of Beijing stock exchange is expected to spend beiteri (835185. NQ), the leader of negative electrode materials. In 2021, the company’s pre profit is 1.35 billion yuan – 1.55 billion yuan, with a year-on-year increase of 173% – 213.44%. The reason for the performance growth is that in recent years, the Shanxi Guoxin Energy Corporation Limited(600617) automobile industry is booming, the downstream lithium battery market continues to boom, and the market demand for battery materials further increases, resulting in the rapid growth of the sales volume of positive and negative materials of the company.
comprehensive registration system reform in sight
It is worth mentioning that recently, regulators have frequently voiced on the “comprehensive registration system reform”. The comprehensive registration system reform is expected to be officially implemented in 2022, the financing amount of the A-share market may reach a new high, and the construction of multi-level capital market will be more perfect. In December 2021, the central economic work conference clearly called for the pilot of comprehensive reform of market-oriented allocation of factors and the full implementation of the stock issuance registration system. The chairman of the CSRC said that the pilot registration system has been fully implemented on June this year, and the conditions for the pilot registration system have been met again
“I personally believe that through the pilot reform of the science and innovation board and the gem in recent years and the improvement of the follow-up system, the conditions for the full implementation of the stock issuance registration system are gradually being met.” Li Jizun, then director of the first Marketing Department of the CSRC, also said so at the 2021 Financial Street Holdings Co.Ltd(000402) forum annual meeting.
At present, the domestic stock market has realized the stock issuance registration system except the main board of Shanghai and Shenzhen; In June 2019, the science and Innovation Board was officially opened and the registration system was piloted. In July of that year, 25 companies under the registration system were listed; In August 2020, the first batch of enterprises under the gem registration system were listed; In September 2021, the Beijing Stock Exchange announced its establishment and also implemented the registration system. Previously, the merger of Shenzhen main board and small and medium-sized board also laid the foundation for the next reform of the main board registration system.
Chen Li pointed out that at present, the conditions for the implementation of the registration system in China’s whole market have become mature. In terms of economic aggregate, China’s GDP will grow by 2.3% in 2020. It is the only major economy with positive GDP growth in 2020, with an economic aggregate of more than 100 trillion yuan. These basic conditions have laid a capital foundation for the comprehensive promotion of the registration system.
Citic Securities Company Limited(600030) general manager Yang Minghui predicted that the comprehensive registration system is expected to be implemented in 2022, and the implementation of delisting will continue to improve. The major changes of “entrance end” and “export end” will further lead the transformation of the market.
Guotai Junan Securities Co.Ltd(601211) macro research chief analyst Dong Qi also said that at present, the pilot of the registration system of the science and innovation board and the gem is becoming more and more mature, the registration system of the Beijing stock exchange is implemented, and the comprehensive registration system may be in the pipeline. There is a great possibility of implementation in 2022, the development of equity financing will accelerate, and the proportion of direct financing will increase.
In the view of insiders, in the future, guided by the reform of the registration system, the supervision will further promote key reforms such as improving the quality of listed companies, improving the delisting mechanism, multi-level market construction, strengthening the responsibility of intermediaries, investment side reform, improving the judicial system and mechanism of securities law enforcement, and continuously improve the basic system of the capital market.
“The promotion of the registration system aims to improve the ecology of securities listing, help to increase the proportion of direct financing and solve the problem of enterprise financing; under the registration system, the pricing ability of the market for securities is enhanced, the role of the capital market in the survival of the fittest is brought into play, and the vitality of the capital market and the competitiveness of enterprises are fully stimulated.” Guotai Junan Securities Co.Ltd(601211) research report points out.
