This article comes from the WeChat public account: Canada Capital (ID: SCHC26) < span class = "text-remarks">, author: Song forward head of FIG source: IC photo
Always change fromFaith begins, and splendid life is ordinary.
For more than two decades, the financial business has been ups and downs. I often ask myself, what is it that keeps me going? Can it help tens of millions of entrepreneurs to keep a career?
This capital market that has shaped and is still shaping me and many financial practitioners, when will it be possible to move towards true fairness, make the snow falling on the hairline worthwhile, and allow the day-to-day waiting Moonlight?
In December last year, the draft amendments to the Securities Law determined the direction of the reform of the registration system of the Science and Technology Board, which is exactly the eve of dawn. But now that the epidemic is in progress, the horn of the GEM registration system is about to sound. Under the intertwining of reason and emotion, I will apply these thousands of thoughts to the pen and share with you.
In 2009, the GEM was born, and the capital market set a milestone; on June 13, 2019, the Science and Technology Board opened, and the Chinese capital market opened up a new test field; on December 23, 2019, the Standing Committee of the National People ’s Congress The meeting reviewed the revised draft of the “Securities Law” for the fourth time and promoted the GEM and Main Board securities registration system; on March 1, 2020, the “New Securities Law” was officially implemented, clearly referring to the pilot system of the Science and Technology Board registration system.
On April 27, 2020, the thirteenth meeting of the Central Committee for Comprehensive Deepening Reform passed the GEM pilot registration system plan. The CSRC issued the supporting system revision draft that night and publicly solicited market opinions.
This is not a linear upward timeline. It twists and turns, full of blood and tears. Periodic crises, the Black Swan incident, the impact of the international economic landscape, and the global epidemic have never calmed down the external variables.
Revisit the first issue of development
Teacher Liu Qiao mentioned in his speech at Peking University, “Since humans have statistics, no country has maintained an average annual growth rate of total factor productivity of about 3% after completing the industrialization process.”
Dismantle the factors of economic development in the economic sense, labor force, capital factor input, total factor productivity (technical factors) are different Stages and different levels have exerted an important influence on economic growth, except that in different stages of economic development, these factors have different effects on their pulling effect.
In the past era of extensive growth, the large-scale investment of production factors was used to superimpose China ’s unique demographic dividend advantage in the world.Resource-based enterprises have achieved great growth. This growth also benefits from institutional tilts, which are resource preferences under non-equilibrium market ownership. This has brought about an unbalanced structural development of China’s economy.
In the future development of China ’s economy, there is a high probability that it will enter the era of total factor productivity pulling from the extensive investment of factors . In other words, the advantage of the world’s largest flow field still exists, but the development momentum has shifted from quantity to quality.
The internal driving force, creativity, anti-fragility of the economy itself, and the overall industrial system in the trend of counter-globalization will affect the direction of China’s economy in the next decade.
Where is the key to the development of this new system?
Integrated into zero, the adjustment and optimization of the economic structure is still the first issue of economic development in the next stage. In the financial industry for more than 20 years, I have always stood with Chinese private entrepreneurs. Speaking of their development difficulties over the past few decades, including the impact of the epidemic in the opening year of 2020, my experience is too profound.
As we all know, private enterprises have limited financing channels and high capital costs. The indirect financing model is naturally not good for private enterprises, and the administrative approval system for direct financing is hard to say. High-quality private enterprises have gradually exhausted their energy in compliance with regulations and queues year after year. Who is unimpeded? —— “Industry support, overall planning”.
The clogging of direct and indirect financing channels has weakened the competition resources of private enterprises facing the market on the one hand, and on the other hand forced them to improve their operations and internal blood production. Credit and monetization have boosted economic development, and the private enterprises that have most stimulated economic growth have been tied to the sandbags with their feet at the beginning of the race.
Compared with the top ten companies in China and the United States in the first half of 2019, the structural problems are very obvious.
Source: Jiahua Capital organizes based on public information
The United States is dominated by technology and consumer services, while China is still dominated by resource-based and regulated non-market-oriented enterprises. The system orientation almost determines the direction of resource allocation, and therefore greatly reduces the efficiency of social resource allocation.
These industries and companies with large market capitalization should have been the pillars of the capital market. When the structural problems of the top beams and columns occur, the grandiose bridge will also collapse in the ant den.
How can such a capital market create blood for the real economy? For entrepreneurs who are really operating, where does confidence come from?
Why call the registration system at the center of the market?
I am a group of people who have grown up with the Chinese capital market.
In 1990, the Shanghai Stock Exchange opened Luoming City, and I joined the industry a few years later. Although the capital volume of China Exchange is at the forefront of the world, the role of China’s capital market in direct financing of enterprises is actually very small, excluding the impact of new stock issuance and policy support.
The ups and downs of the index are now back to the origin.
How to analyze this problem?
In my opinion, there are two main reasons for the failure of financial market entities. The first is the structural imbalance of infrastructure, and the second is the positioning of market entities caused by structural factors.
I will not talk about the structural imbalance. We are one-legged runners. There are multiple historical and practical reasons for unfair competition in resource allocation and institutional systems. Optimistically, we can still be the second best player in the world on one leg. If the sandbags can really be lost, the long-term vision of “Long China” is bound to be a good strategy.
China is still the core source of the world’s economic potential and the largest energy field.
I want to focus on the second point, which is precisely the key issue that may be partially improved after the registration system is implemented. Under the background of structural imbalances, the regulatory agencies, investment banks, and companies to be listed The role positioning of major market players.
In developed financial markets such as Europe and the United States, the role of regulatory agencies is mainly in functional supervision. By regulating the behavior of companies participating in the market, a fair and equitable operating system is established. It is in the mutual game of issuing stocks and market reaction that companies have realized value discovery.
However, under China ’s capital environment, the CSRC ’s functions range fromBehavior supervision has become market intervention, the audit system has made market supply misaligned, and the capital market function from market demand to industrial allocation of resources has also been weakened.
For this reason, the role of China’s investment banking system is seriously missing. A large number of window guidance, listing counseling, and compliance inspection pressure have caused intermediaries to spend too much energy on the compliance affairs of the planned listed companies, but they have ignored the mission given by the market to select high-quality for investors, the stock market, and the society. 1. A company that can be listed and operated well, leveraging the power of capital to leverage the company ’s commercial value.
Accordingly, the well-planned companies that are going to be listed have also turned their demands for improving their operational capabilities into legal and financial compliance reforms. Long-term application review, listing counseling, and review of stalls have severely distorted the flow of information and price signals in the capital market. During the three-year reporting period, the company has stabilized its performance growth, but after the real listing, it has to face the decline in its life cycle, and the biggest value bonus in the growth period is thus missed.
The new registration system is popular and there is still light in the smog
Over the past few years, the country has successively introduced many policies to encourage entrepreneurship and innovation in the whole society. The New Third Board and the Science and Technology Board are both drastic and substantial incentives. I watched many young people embark on the path of arduous entrepreneurship and personally accompanied many entrepreneurs to grow into industry leaders.
There have been a lot of big winds and waves, and the amount of money flowing through my hands is less than 80 billion. What other problem is the knot that I always find difficult?
Yes.
This industry that has devoted me to more than 20 years of my life seems to be so short from the real “value creation”. I think maybe I can’t leave this career in my life. But if the roots of the cause are planted in a soil that has been deprived of nutrients, no matter how strong the saplings are, and no matter how diligent the watering is, a lush jungle cannot be cultivated.
In 2020, the epidemic is raging, and I am hard-pressed. As the first group of people in the industry who stood up and called on the government to back up, my position is not only an investor, but also one of the most common people in Chinese society. I hope that people who have seen the ups and downs of the cycle and Lu Yuan’s death still don’t abandon the long distance will eventually be able to see the moon and the moon.
From the pilot project of the Science and Technology Innovation Board, the trial of the bond market to the draft of the GEM, the implementation of the registration system has been deepened step by step. Epidemic situation, Ruixing, China stocks, Dangdang, we recently heard too much bad news in the capital market, it is time to give a strong shot. What is the impact of the rapid promotion of the registration system to the GEM on the capital market?
Internet public information, please see the picture watermark for the source
First, The financial market will directly benefit. The optimization of the underlying infrastructure will bring about a gradual balance between the supply and demand of the capital market and the transaction structure.
Infrastructure is too important. I have talked about the direction of the transformation of the old and new kinetic energy of the Chinese economy on many occasions. One is technological innovation, and the other is consumer services. Among them, technological innovation calls for more financial resources to support, and consumer services require a more fully competitive market environment.
At the same time, the registration system should pay more attention to the matching of the top-level institutional structure and the legal system. In a listing environment where information disclosure is the mainstay, it is important to increase the cost of default, otherwise certain companies that deceive and deceive the public will hurt the market and it will be difficult to contain it.
In addition, the development of China’s venture capital institutions has entered the 3.0 era. After the profit space of the primary and secondary markets is narrowed, Investment institutions that really understand the industry, understand the industry, and cultivate value will become value-earners.
Several dozens of years of back-broadcasting and humiliation. Nowadays, high-quality capital and industry promote each other under a healthier system. They are also on the same level of innovation and innovation, technological iteration, consumer services, entrepreneurship, business civilization, etc. Resonance.
This is a situation we are happy to see.
Investors and entrepreneurs need more value recognition and identity recognition from the mainstream society, which is very important for the long-term stability of the Chinese economy and social progress.
After the registration system is implemented step by step, the misalignment of the main role mentioned earlier will also be significantly improved. This is the result of two-way stimulation of changes in the system and infrastructure.
Investment banks focus on value judgments, and find something truly worthy of capital for societyGood companies; regulators return to behavior supervision and stabilize market supply and demand through information disclosure and standard governance; high-quality companies can focus on operations without having to worry about compliance reforms and issuance audits.
Naked swimming investment institutions in the wave will also be gradually repelled by the waves, and the surprising capital will win more trust.
The reform dividend of China ’s capital market will attract foreign investors to re-evaluate the global asset allocation value of A shares, hedge recent international market doubts about the financial authenticity of Chinese listed companies, and restore confidence in Chinese companies in the international capital environment as quickly as possible .
In the period of domestic economic transformation and upgrading, especially in the context of reducing the negative impact of the epidemic on the economy, the reform of the GEM registration system will also promote more high-quality companies to land on the capital market and enhance the ability of capital to serve the real economy.
In this dynamic change, the capital market has gradually achieved a balance between supply and demand, and a fair and just market environment has spontaneously formed.
Xiao Xiao said that this is conducive to hedging the negative impact of the “Chinese company’s operating quality collectively questioned” caused by the Ruixing incident; Xiang Da said that this is our health-based and regulated capital market, which is further integrated into Favorable attempts at the global financial system.
Perpetuators have perseverance, and entrepreneurs are looking forward to a fair and fair competitive environment. As an investment institution with a sense of mission, Jiahua Capital should voice a call for restructuring the fair and inclusive capital market order, maintaining the full release of resource potential at both ends of supply and demand, achieving balance in the game, and discovering, transmitting, and creating value in the market. .
The continuous improvement of the underlying system of China’s financial market not only allows the flow of China’s economy to flow, but also mobilizes the enthusiasm of innovation and entrepreneurship in the whole society. The social benefits it generates are far greater than its initial effect on the financial market.
We have the ability to establish a modern national governance system and establish a brand new business civilization in a fair market order. I also believe that all of this will start with the layer-by-layer registration system and become the target of future cruising.
Every individual is one of the constituent particles of society. We are eager to be inspired by the energy of “I am destined by the sky” and eager to perform more miracles on this grand stage of dreams in China. What is a miracle?
Miracle is born in ordinary.
There are always people who persevere, transform, and create in the ordinary, to achieve a state of detachment that is difficult for others to reach. All they can do in their lifetime is to give an affectionate comment on the word “life value”.
When individuals all hope for a better life, they are endowed withGiven the external environment and rights for the pursuit of happiness tomorrow, and the fighting spirit to achieve a better self in the future, “the people have faith, the country has power, and the nation has hope” will no longer be empty words.
Longer term, this round of registration reform is likely to inspire more individual-level beliefs and powers, and will release its huge potential for transformation in the financial, economic, social and even philosophical sense. The preciousness of this energy may only be felt by us twenty years later.
Opportunities are emerging, and those who are truly capable and willing are bound to make a difference in the vast world.
Maybe it does n’t have to be twenty years old, or maybe it ’s the next dawn.
You cannot restart in 2020, but hope is still there, hope is forever.
This article comes from the WeChat public account: author: Song forward