In order to withstand the new downward pressure on the economy and ensure the smooth operation of the economy in the first quarter and the first half of the year, the national standing committee meeting held on January 10 put forward a package of countermeasures. What measures should be taken to withstand the downward pressure on the economy for the capital market, which plays a pivotal role in promoting the high-level circulation of science and technology, capital and the real economy?
“Making progress while maintaining stability” is the general tone set by the central economic work conference for 2022. The development of the capital market should also do a good job in this regard. Facing the increasingly complex economic situation at home and abroad, the article of “stability” of the capital market should be realistic and thorough.
There are many ways to “stabilize” the capital market, such as improving the support of the real economy, improving the quality of listed companies, attracting domestic foreign capital into the market, strictly supervising intermediaries, improving the IPO mechanism, purifying and optimizing the market investment and financing environment, etc. Doing these jobs well is the basis and primary task for the A-share market to withstand the downward pressure of the economy.
At the same time, the capital market should make various preparations for the full implementation of the stock issuance registration system. In addition to summarizing the experience of the pilot registration system of the science and innovation board, the gem and the Beijing stock exchange, it is also necessary to sort out and modify relevant laws and regulations to meet the needs of the comprehensive registration system. The Shanghai and Shenzhen stock exchanges have already taken action. On January 7, the Shanghai and Shenzhen stock exchanges respectively issued the revised stock listing rules and a series of rules and regulations. On the whole, the revision of these rules and regulations implements the requirements of the new securities law and the State Council on improving the quality of listed companies. It is not only an important part of the market-oriented allocation reform of capital market elements, but also an institutional adjustment to integrate with the comprehensive registration system. Subsequently, the regulatory authorities will successively introduce, optimize and improve relevant laws and regulations to lay a good institutional foundation for the full implementation of the stock issuance registration system. It is the basic function of the A-share market to resist the downward pressure of the economy to fully stimulate the individual vitality of the market and provide blood transfusion and timely help for the real economy.
In addition, practice in recent years has proved that reform and innovation is a “magic weapon” for the capital market to maintain vitality and enhance resilience, especially under the increasing downward pressure on the economy.
Following the new third board, Kechuang board is also expected to introduce the market maker mechanism. The CSRC recently issued the pilot provisions on stock market making trading business on the science and Innovation Board of securities companies (Draft for comments), which aims to further promote the establishment of the science and innovation board and pilot the reform of the registration system.
The general view of the market is that the original intention of introducing the market maker mechanism into the science and innovation board is to enhance market liquidity, improve market activity, reduce the probability of abnormal market fluctuations, and build a barrier to prevent market ups and downs together with margin trading.
However, the introduction of market maker mechanism is not so simple. At the beginning of the launch of the market maker mechanism, the market has a process of understanding and adaptation. The regulators will put various risk prevention measures in place. The bottom line is stable start and steady development, just like the original margin trading.
Our basic judgment is that the introduction of the market maker mechanism into the sci-tech innovation board is the beginning of the innovation and reform of the capital market, and other measures will be launched one after another.
As Yi Huiman, chairman of the CSRC, said: “the practice of these years has fully proved that the smooth operation of the market is\’ changed \’rather than\’ kept \’ This is the confidence of the A-share market to withstand the downward pressure of the economy.
future analysis
China Securities Co.Ltd(601066) securities Chen Guo team: what are the reasons for the recent weakness of the A-share market?
Public and private placement positions in the beginning of the year “fight left and right”! Private placement institutions: limited exploration space for a shares
