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The Deputy Chairman of the Chinese Securities Regulatory Commission issued an important statement of deep significance deep meaning Vice – Chairman | Daily Limit Board _ Sina News

Original name: Today, the Vice-Chairman of the Securities Regulatory Commission in China issued an important statement! Behind the scenes

On the twelfth day, Fang Xinghai, Vice Chairman of the Securities Regulatory Commission of China, said at the 23rd China Capital Market Forum: "It should be the first day of the day to study, and I personally think it should be canceled."

Fang Xinghai believes that the IPO's first day has a limit of 44% on the daily limit, the first day the price has increased by 44%, there is no trading volume. "The price without trading volume is an illusory, inaccurate price." Artificial constraints have caused the price to be disproportionate and there has been no trade in recent days, which is very disproportionate.

Previously, the original intention of limiting the price increase on the first day of the listing was to suppress excessive speculation in the IPO process and reduce the IPO premium rate. However, whether the results were achieved was discussed on the market.

Fang Xinghai Conference Speaking Points:

1. Future capital market reforms will play a role in the reform of the financial system;

2. It is recommended to abolish the limit of the first day of new shares;

3. The magnitude of the inflow of foreign capital to China is expected to increase further this year and a 600 billion yuan range can be expected;

4. If the equity financing is not significantly improved, the macro-fund ratio will remain unbalanced;

5. I often think that the bottom of A shares makes domestic courage not to buy, but foreign capital is desperately buying;

6. We need to take action to make the transaction more active;

7. Some Overseas Investment Banks have indicated that, once this policy has been approved, they will apply for 100% of domestic enterprises;

8. As soon as possible, we will complete the task of promoting the Scientific and Technical Board and the Pilot Registration System as soon as possible.

When has the new IPO opening time been reached?

At the end of 2012, the Securities Regulatory Commission of China carried out extensive financial verification and suspended the review of IPO issuance. On 13 December 2013, before the new round of new shares was issued, the Shanghai Stock Exchange issued a "Notice on Further Strengthening Initial Market Surveillance on IPO". "" provides that "the Shanghai Stock Exchange will first issue the share price on the first day of the statement, ie the highest declared price limit in the collective tender is 120% of the issue price and the minimum price declared is 80% of the issue price. (ie 144% of the issue price) and must not be less than 80% of the minimum declared price limit in the overall stage of the tendering procedure (ie 64% of the issue price). commercial supervision over the initial public offering of shares (the first 10 business days after listing), prevent and control new speculative warehouses, maintain market trade and protect the legitimate rights and interests of investors. "

On the same day, the Shenzhen Stock Exchange issued a "Notice of Suspension of Initial Public Procurement for the First Procurement", which states that an effective bid for opening new shares on the day of the first issue will be 20% of the issue price. The announcement also states that "the price in the trade will be increased or decreased for the first time by 10% and the temporary suspension time will be 1 hour." The internal trading price will first increase or fall by 20%.

At this point, fluctuations and declines in the IPO on the first day of the statement are limited and the transaction price may be between 64% and 144% of the issue price. However, the problem of "fresh new" on the market has not been resolved. New shares closed on the first day, up 44%, followed by a range of daily limits.


Expert opinion

Wu Xiaoqiu

Vice President of Renmin University in China

Director of the Institute of Finance and Securities

Reform and capital market development is one of the key elements of China's current financial activity and is of strategic importance for the continued and stable development of the Chinese economy. The Chinese capital market must improve the current situation and must support institutional innovation. The limitation of the first listing has helped the market speculate to a certain extent, which does not contribute to normal market trading. It is advisable to cancel this system.

Hao Lianfeng

Director of the Chinese Research Institute for Insurance

The first day of new shares has the following issues:

First, artificially distorting prices and reducing market efficiency.

Second, give ordinary investors bad expectations and leadership.

Thirdly, IPOs are generally overhanging, and opening a daily limit may be the pinnacle and catch up with small investors.

Zhang Yulong

Chief of the CITIC Securities Investment Strategy Group

The price cap system itself is designed to protect investors, especially small and medium-sized investors, but there are also three costs: one is to reduce market efficiency, the other is to reduce market liquidity, the third is that the system is easy to manipulate. .

In the process of IPO listing on the first IPO, the degree of asymmetry of business value information is higher, so there are huge fluctuations. At this point in time, the adoption of the price cap system does not help to make a full price finding.

Canceling the first day of the ups and downs on the market will help increase efficiency and remove the basis for price manipulation.

Chen Tingguo

The main analyst of the Minsheng Plus Fund

The abolition of the first IPO listing date will help support a full marketing strategy on the stock exchange in China and speed up integration with the international financial market trading mechanism, helping to fully capture the key role of supply and demand in the market for stock prices, reflecting stock market inclusion . A comprehensive evaluation of the company's structure, performance and prospects maximizes the initial market valuation of listed companies and highlights the market rules for the survival of the most capable. Of course, when introducing the reform trade system, we should pay more attention to the various manipulations of stock prices and carry out timely and effective supervision.

Responsible editor: Zhang Yan

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