Securities Times reporter Cheng Dan
Five years ago, General Secretary Xi Jinping announced the establishment of the Science and Technology Innovation Board on the Shanghai Stock Exchange and the pilot registration system, which kicked off the basic institutional reform of China’s capital market with the registration system as the core. From the Science and Technology Innovation Board taking the lead in testing the waters to the GEM expansion pilot, and then the Beijing Stock Exchange launching the consolidation of reform results, China’s stock issuance registration system reform has been explored for five years, making the capital market further become a booster for the launch of new economic forces. .
China Asset Management stated that under the comprehensive registration system, investing in the Science and Technology Innovation Board and GEM through ETFs has become a mainstream model, and the total management scale of ETFs tracking the Shanghai Stock Exchange Science and Technology Innovation Board 50 Index has exceeded 140 billion. At the same time, the market-oriented pricing mechanism for new shares has become more complete, testing the pricing capabilities of professional investors and prompting the A-share investment logic to gradually shift to more effective rational investment and value investment.
More than a thousand companies
Benefit registration system reform
The past five years of registration system reform have proven that through the comprehensive implementation of the registration system, the basic system, market structure, service functions, market functions and ability of China’s capital market to serve the real economy have been greatly improved.
Since the pilot registration system was launched, the number of A-share companies approved for registration has exceeded 1,000. With the help of the registration system reform, many companies have got rid of the constraints of development and accelerated the shift in gears. In particular, the full implementation of the registration system has enhanced the capital market’s support for the real economy, especially technological innovation. In the six months from April 10, when the first batch of companies were listed on the main board, to October 10, 51 companies on the Science and Technology Innovation Board raised 121.9 billion yuan, and 80 GEM companies raised 83.5 billion yuan. The amount raised by the two major sectors exceeded the total amount by 80%. .
China Asset Management stated that the listing conditions under the registration system are more inclusive and can meet the financing needs of some red-chip companies and science and technology innovation companies that are in the technological research stage and have not yet made profits, guide more capital to flow into the science and technology innovation field, and smooth the “technology-industry- “Financial” high-level cycle.
At the same time, the registration system has further improved the pattern of China’s multi-level capital market. Measures such as the establishment of the Science and Technology Innovation Board, the reform of the GEM, the merger of the Shenzhen Stock Exchange main board and the small and medium-sized board, and the establishment of the Beijing Stock Exchange have made the characteristics of each sector of China’s multi-level capital market more distinctive. , can meet the financing needs of enterprises of different types and stages.
At present, the capital market has formed a multi-level capital market system that serves all types of enterprises – there is the main board market that serves mature, large, and leading enterprises, and there is the science and technology innovation board market that serves hard technology as the core. , there is the GEM market oriented towards innovation and entrepreneurship, there is the Beijing Stock Exchange market that serves innovative small and medium-sized enterprises, and there are also local equity trading centers and the New Third Board market that serve those that have not yet met the listing conditions. Enterprises at different stages of development can find equity markets suitable for their development stages in the capital market to obtain effective capital market services and provide the public with more effective investment tools.
“The registration-based reform has also significantly improved the marketization of A-shares and the efficiency of IPO review and issuance.” China Asset Management believes that the market-oriented mechanism arrangement centered on information disclosure does not impose administrative controls on the price, scale, etc. of new shares. , which has greatly improved the efficiency, transparency and predictability of the registration system; improvements to some key systems, such as relaxing price limits and smoothing delisting channels, have greatly improved the pricing efficiency of the secondary market and improved the survival of the fittest in the market. The mechanism has also optimized the industry structure, investor structure and even valuation system of A-shares. The proportion of scientific and technological enterprises in IPOs has increased significantly, and more professional and systematic institutional investment will become the mainstream of the market.
The scale of mass entrepreneurship and innovation funds continues to grow
In the five years since the registration system was announced, the total assets of public funds have increased significantly, and the amount of positions held on the GEM and the Science and Technology Innovation Board has increased significantly. According to data disclosed in the fund quarterly report, the total assets of public funds have doubled from nearly 13 trillion yuan in the third quarter of 2018 before the registration system was announced to over 27 trillion yuan in the third quarter of 2023. The total assets held by A-shares have doubled. The market value has increased significantly from 1.59 trillion yuan to 5.4 trillion yuan, an increase of more than 2 times.
While the amount held by public funds has increased significantly, the position structure has also undergone significant changes, with a large increase in positions on the GEM and the Science and Technology Innovation Board. In the third quarter of 2018, the GEM accounted for 13.29% of the stock holdings of public funds. By the third quarter of 2023, the position of public funds on the GEM has increased to 17.18%, and their positions on the Science and Technology Innovation Board have grown from scratch. increased to 11.87%.
Under the registration system, investing in the Science and Technology Innovation Board through ETFs has become a mainstream model. Statistics show that the total management scale of ETFs tracking the Shanghai Stock Exchange Science and Technology Innovation Board 50 Index has exceeded 140 billion yuan, of which the share of the Science and Technology Innovation 50 ETF under China Asset Management exceeds 100 billion. Became the first equity ETF with a share of over 100 billion.
The SSE Science and Technology Innovation Board 100 Index is the second Science and Technology Innovation Board broad-based index released after the Science and Technology Innovation 50 Index. Despite facing a short-term market decline, the first batch of four Science and Technology 100 ETFs have grown significantly in more than a month since they were listed on September 15 this year. As of October 22, their latest size reached 8.08 billion yuan, which is higher than the issuance size. An increase of 1.13 billion yuan, an increase of more than 16%, and investors have a positive attitude towards deploying the Science and Technology Innovation 100 ETF. The second batch of Science and Technology Innovation 100 ETF products reported by China Asset Management and others are also being actively prepared.
According to public information, the Science and Technology Innovation and Entrepreneurship 50 Index was officially released on June 1, 2021. From the Science and Technology Innovation Board and GEM with strong growth attributes, 50 listed company securities in emerging industries with larger market value were selected as index samples. , aims to reflect the overall performance of securities of representative listed companies in emerging industries on the Science and Technology Innovation Board and GEM, and is therefore more scientific and innovative. Currently, the total scale of the Science and Technology Innovation and Entrepreneurship 50 ETF has exceeded 25 billion yuan.
The pricing mechanism for new shares continues to improve
After the implementation of the comprehensive registration system, listing is no longer equivalent to a wealth safe, which means that subscribing for new shares is no longer a risk-free investment behavior. Those who win the new shares will no longer be able to “win”. Investors must “play new” rationally and cannot Blindly “everything new must be defeated”. Under a smooth IPO mechanism and a gradually improved delisting system, companies will not have shell value. Therefore, if they cannot achieve real growth and value, they will be gradually marginalized or eliminated, and the investment logic of A-shares will return to be more effective. Rational investment and value investment.
China Asset Management stated that in order to adapt to the new environment of the comprehensive registration system, the fund company’s research capabilities are gradually improving, the coverage is gradually expanding, and the investment strategy is increasingly paying attention to fundamentals and insisting on value investment. Under the new environment of the comprehensive registration system, market pricing will gradually become more rational, and the requirements for institutional investors’ investment research capabilities are getting higher and higher. Therefore, for fund companies, investment research capabilities are the foundation of their lives.
“Under the comprehensive registration-based reform, fluctuations in the new stock market are inevitable. Investors should treat new stock issuances as normal and rationally treat the signs of mature markets.” China Asset Management pointed out that a certain proportion of new stock issuances will help break the mentality of “new stocks are undefeated”. Promote the return of new stock returns to rationality and make IPO pricing more consistent with judgments of true value. The public fund industry should improve its fundamental pricing capabilities, shift from the “launch new and win” strategy to selecting individual stocks, and increase returns through in-depth research and quotations. Investors should respect the market, focus on fundamental research, avoid excessive focus on speculative games, and rationally subscribe for new shares. Through rational investment and active participation, we will better respond to market fluctuations and build a healthier and more sustainable capital market.