What Is The Focus Of The Reform Direction Of The Capital Market?

Forty years, a flick of the finger.

The year 2020 marks the 40th anniversary of the establishment of Shenzhen Special Economic Zone and the 30th anniversary of the establishment of capital market and Shenzhen Stock Exchange.

During this period, the process of Shenzhen Stock Exchange from scratch, from small to large, from single market to multi-level market, from regional market to global emerging market, is also an epitome of the reform of Shenzhen SAR capital market.

On the evening of October 14, when studying the spirit of General Secretary Xi Jinping's important speech, SZSE pointed out that it would firmly shoulder the responsibility of taking the lead in the capital market and promote the reform and development of Shenzhen stock exchange with high quality.

This statement has triggered extensive discussion in the market.

Earlier, the general office of the State Council issued the "comprehensive reform pilot implementation plan for Shenzhen to build a leading demonstration zone of socialism with Chinese characteristics (2020-2025)" (hereinafter referred to as the "plan"), which proposed: "promote the reform of the growth enterprise market and pilot registration system, and pilot innovative enterprises to issue stocks or depository receipts (CDR) in China. We will establish a mechanism for companies listed on the new third board to be listed on the second board. We will optimize the market access environment for private equity funds. We will explore and optimize the market access and development environment for venture capital enterprises. "

The 21st century economic reporter interviewed people in the industry and learned that this reform plan is of great significance for Shenzhen Stock Exchange to play the role of "pioneer" in capital market reform.

"Shenzhen, as a pilot project of comprehensive reform of the new model zone, Shenzhen stock exchange can be said to bear the brunt and benefit. The trial and error aspects of the financial and capital markets are of great significance. If the Shenzhen Stock Exchange seizes the opportunity, boldly reforms and tries first, it will certainly become a test field and booster for China's capital market, including the stock market, to accelerate reform. " Dong Dengxin, director of the Institute of Finance and securities of Wuhan University of science and technology, said in an interview.

Thirty years of bold innovation

As of October 15, the total number of A-share listed companies in Shenzhen Stock Exchange exceeded 2303, and the total market value exceeded 33.23 trillion yuan. The history of the development and growth of Shenzhen stock exchange is also a history of securities market reform.

On December 1, 1990, Shenzhen Stock Exchange began centralized trading, becoming the first stock exchange in New China to start centralized trading after the reform and opening up. Since then, the stock market has shifted from decentralized over-the-counter trading to centralized trading on the exchange. In 1992, the Shenzhen Stock Exchange began to carry out the construction of "four modernizations" (computerization of trading, paperless settlement, satellite communication, and no lobby operation), laying a solid foundation for the technology level of securities trading system to lead the world in the future.

Then, in order to strongly support high-tech enterprises, growth oriented innovation and entrepreneurship enterprises, small and medium-sized enterprises and private enterprises, we explored and launched the small and medium-sized enterprise board, successfully launched the growth enterprise market, steadily started Shenzhen Hong Kong stock exchange, and successfully implemented the gem reform and pilot registration system.

In 2019, the annual stock financing amount of Shenzhen stock exchange is as high as 508.93 billion yuan.

During this period, the Shenzhen Stock Exchange has continuously improved its service level, including innovating the types of investment products and improving various policies and rules, such as expanding the stock index options, launching CSI 300 ETF options by the end of 2019, enriching REITs products, successively launching the first private REITs relying on asset securitization business, and the first REITs with public funds as the carrier. In April 2020, the Shenzhen stock exchange established the basic facilities of Shenzhen Stock Exchange Shigong raised REITs pilot work also started.

"In the deep-water stage of reform, the Shenzhen Stock Exchange faced up to the difficulties, actively innovated, vigorously promoted the reform and opening up, and achieved brilliant results. For example, Shenzhen launched the registration system reform of the gem, taking into account the stock and increment, and vigorously reformed the basic systems of issuance, listing, information disclosure, trading and delisting. The market is also more standardized, transparent and open, its vitality and toughness have been enhanced, and its operation is relatively stable, and its function of serving the real economy is highlighted. At the same time, Shenzhen has also been able to innovate boldly. It has also made great achievements in expanding the capacity of stock index options and infrastructure public offering REITs The reform measures of the Institute were most impressive.

At the critical period of comprehensively deepening the reform of the capital market, Shenzhen Stock Exchange, as a model of "first and first try" in the capital market, is bound to undertake more reform missions.

According to the plan, Shenzhen will be supported to take the lead in the construction of the capital market, such as promoting the reform of the growth enterprise market and pilot registration system, and innovating the issuance of stocks or depository receipts (CDR) by enterprises in China.

In the view of industry insiders, SZSE will play an important role in formulating and improving a series of supporting systems related to the pilot project in the process of domestic issuance of Depository Receipts (CDR) by pilot innovative enterprises, and work with relevant parties to promote the smooth development of the pilot work.

Li Zhan, chief economist of Zhongshan securities, pointed out in an interview: "the domestic issuance of depository receipts by pilot innovative enterprises means that the path for overseas enterprises to return to a shares through CDR has been smooth, and cross-border transactions can be realized. The pilot CDR provides convenience for the financing of innovative and entrepreneurial enterprises listed abroad, realizes direct financing in the mainland market, enriches the financing channels of enterprises, optimizes the capital structure of enterprises, and provides broader development space while meeting their financing needs. "

Tian Lihui also said: "in the process of pilot CDR, Shenzhen Stock Exchange will play a leading role in promoting the internationalization of capital market, relevant banks and RMB."

In Tian Lihui's view, the CDR model is that overseas listed companies trust some of the stocks that have been issued and listed in local banks, and issue them through domestic depository banks, which is equivalent to listing in a shares. CDR is suitable for those overseas new economy enterprises to return to A-share market. Issuing CDR can promote the development of stock market, accelerate the internationalization of capital market, and help Shenzhen Stock Exchange to connect with the international market.

"At the same time, CDR pilot can improve the service capacity of banks, expand corresponding business, and strengthen international business cooperation. This will help to enhance the international competitiveness of China's commercial banks. The complexity of CDR valuation currency will promote the internationalization of RMB and the pace of exchange rate reform. Due to the difference of P / E ratio between domestic and overseas stock markets, Shenzhen stock exchange needs to face the problem of CDR arbitrage, which will further open the capital market. " Tian Lihui further pointed out.

Experts discuss the direction of reform in the next stage

It is worth mentioning that although the past achievements are brilliant, the Shenzhen stock exchange still needs to continue its efforts in the process of innovation driven development and internationalization in order to achieve the goal of "building a high-quality innovation capital center and a world-class exchange".

Li Zhan pointed out that in the future, the Shenzhen stock exchange needs to make efforts in two major reform directions: "on the one hand, we should continue to promote the deepening reform of the capital market, systematically improve the basic market systems such as issuance, listing, information disclosure, trading and delisting, further optimize the market functions, enhance the service ability for innovative and entrepreneurial enterprises, promote the improvement of the quality of listed companies, and strongly support high-tech Enterprises, growth oriented innovation and entrepreneurship enterprises, small and medium-sized enterprises and private enterprises will promote the high-level circulation of science and technology, capital and the real economy. "

"On the other hand, we can learn from the advanced experience of foreign exchanges, promote the construction of an international system of rules and regulations, and further enhance our competitiveness, open supervision and risk prevention and control capabilities." Li Zhan said.

However, as a good opportunity for the development of China's private equity market, Lihui said: "as a good opportunity for the development of China's private equity market, Shenzhen's private equity market should also be promoted. The Shenzhen Stock Exchange should also continue to crack down on illegal behaviors and improve the quality of listed companies by punishing the bad and promoting the good. "

In addition, Tian Lihui also pointed out that the Shenzhen Stock Exchange should guide value investment and long-term investment to improve the effectiveness of the market.

In his opinion, the Shenzhen Stock Exchange has launched mechanisms such as Shenzhen Hong Kong stock connect, bond link, QFII, QDII and CDR to continuously promote internationalization and enhance the international competitiveness of Shenzhen Stock Exchange. With the continuous improvement of China's international status, Shenzhen stock exchange is expected to become a world-class exchange in its efforts.

Dong Dengxin also pointed out that "in terms of expanding space, Shenzhen stock exchange can take the Hong Kong Stock Exchange as an example to learn from. As a mature and developed market, the Hong Kong stock exchange shares the same origin of Chinese culture with Shenzhen Stock Exchange. China has its own template. The Hong Kong stock exchange is the Hong Kong stock exchange of China. Hong Kong has become a big market for RMB internationalization. The Shanghai Hong Kong stock connect and Shenzhen Hong Kong stock connect have been opened. We should have the courage to overcome obstacles, vigorously promote the integration process of the three exchanges, and achieve the advantages of integrated trading and market efficiency. "