Policy interpretation
The reform of the registration system has achieved remarkable results, and the marketization and specialization of investment banking is the general trend
The reform of the registration system has promoted the substantial expansion of the capacity of listed companies, the increase of the scale of direct financing, and the transition of the reform process from comprehensive to steady progress. Since the implementation of the registration system, the IPO financing amount of the science and innovation board has exceeded that of the main board for two consecutive years. A series of major reform measures such as the opening of the Beijing stock exchange in 2021 have been implemented, and the number of IPO enterprises and total fund-raising in the whole year have set a new historical record. The reform of the registration system has set diversified listing standards, relaxed listing conditions, and encouraged more enterprises with non-traditional ownership structure and business model to be listed. With the promotion of the pilot, a series of basic systems such as issuance and underwriting, listing, information disclosure, trading and delisting have been gradually improved.
The market-oriented development of investment banking puts forward higher requirements for the professional ability of securities companies. Under the reform of the registration system, the investment banking business has returned to its origin, prompting securities companies to further improve their pricing ability, sales ability and professional service ability. Value discovery, valuation and pricing, research and analysis and service sales have become the core competitiveness of securities companies. Head securities companies maintain and continue to enhance their own advantages in underwriting scale, risk management ability and customer reserves. At the same time, small and medium-sized securities companies will strengthen specific business areas and transform to characteristic and high-quality products. The multi-level capital market was further established. The Beijing stock exchange was established and insisted on dislocation development, and the national innovation driven development strategy was implemented
Make up for the shortcomings of developing Inclusive Finance in the multi-level capital market and unblock the direct financing path of small and medium-sized enterprises. The Beijing Stock Exchange opened its market on November 15, 2021. With differentiated institutional arrangements, it developed in dislocation with the Shanghai and Shenzhen Stock Exchange, created a main position for innovative small and medium-sized enterprises serving "specialized, special and new" and synchronously piloted the securities issuance registration system.
Beijing stock exchange opens up an incremental market, and securities companies have differentiated competition space. After the establishment of the Beijing stock exchange, it has brought about the expansion of the capital market. With the increase of market activity, more enterprises seek to be listed on the Beijing stock exchange, which will bring about the increment of investment banking business and increase the income of securities companies. At the same time, the Beijing stock exchange further improved the good ecology of the exit end of private equity funds and benefited the direct investment business of securities companies. In addition, the establishment of the Beijing stock exchange is expected to drive the revaluation of selected companies on the new third board, which is conducive to improving the equity investment income of securities companies.
Under the bidding system, the market maker mechanism provides a mechanism to supplement liquidity and promote value discovery, which is an inevitable trend under the reform of the registration system
The sci tech Innovation Board introduced the market maker system in a pilot way to supplement the liquidity provision mechanism. The science and innovation board allows securities companies with standardized corporate governance, sound internal control mechanism, stable operation and strong anti risk ability to carry out market making trading business in a pilot way, and steadily promote the implementation of relevant systems on the basis of the pilot. As an important liquidity providing mechanism, the market making opportunity system can make up for the lack of liquidity in the bidding trading system, reduce market volatility, further standardize the market, curb price manipulation and maintain market fairness.
The pilot qualification threshold of market makers on the scientific innovation board is high, and securities companies with strong capital strength and trading ability have business opportunities. On May 13, the CSRC officially issued the pilot provisions on stock market making trading business of securities companies on the science and innovation board, which puts forward higher requirements for net capital, internal control and risk control management. It is expected that among the securities companies that meet the qualification of applying for the first batch of market makers, most of them are large securities companies. Market making trading brings new business increment to the exhibition industry of pilot securities companies, at the same time, it may bring new synergy, and drain business for other institutions to improve customer stickiness.
