Regulators come out from time to time to say that deregulation should become a new direction for A-share reform

Regulators come out from time to time to say that deregulation should become a new direction for A-share reform
Deregulation should become the new direction of A-share reform. The A-share market has continued to slump, with turnover and indexes hitting new lows in recent years.In the meantime, in order to promote the stable and healthy development of the capital market, the regulators from time to time uttered shouts and successively introduced reforms.  On January 12, Fang Xinghai, vice chairman of the China Securities Regulatory Commission, spoke at the China Capital Market Forum, stating that the daily limit on the first day of new shares is very unreasonable and restricts transactions and should be cancelled.  This policy originated from the reform of the new share issuance system implemented on January 1, 2014. At that time, in order to solve the three high issues of “high issue price, high price-earnings ratio, and super fundraising” of the new shares issue and the “stir-fry” phenomenon on the first day of listing,The 23-fold price-earnings ratio invisible red line and first-day daily limit for new shares is set, that is, 20% of the auction price on the first day of listing of new shares, and the upper limit of 20% after the opening, so the maximum increase is 44% of the issue price.  From the data of recent years, after the implementation of the policy, the phenomenon of the three highs has basically disappeared, but the “stir fry” of listed new shares has continued to increase.Statistics show that in the next few years, the average number of new stocks listed on the stock market has risen by about 10 stops. “New” appears to be a risk-free “money pick-up”. The so-called new funds also appeared in the war market.In fact, it is equivalent to turning over-raised funds of military listed companies into gains for newcomers.  Too many administrative interventions have always made financial supervision, including internal supervision of the A-share market, controversial, and it is easy to overlap the conflict of “dealing once, letting go”.Therefore, there are often “policy bottoms” and “market bottoms” in the downturn of the stock market. However, for a long time, there have been opinions that chaos should be dealt with more frequently, and there is also a lack of compliance with market laws and self-healing functions.  However, from the previous actions of the supervisory authorities, reducing administrative intervention and deregulation are expected to become the direction of future reforms.On October 30 last year, the CSRC issued a three-point statement in the intraday, and the second article mentioned: reducing interference in transaction conversion, allowing the market to have clear expectations of regulation, and giving investors a fair trading opportunity; December 20On the day, the State Council’s Financial Stability Development Committee initiated a symposium on capital market reform and development, and once again clearly and resolutely established the principle of marketization to reduce administrative intervention in transactions.  Fang Xinghai also said on the 12th that he would deregulate in the future. In addition to thinking that the daily limit on the first day of new shares should be lifted, he also mentioned the need to further relax stock index futures trading measures.At the same time, it is mentioned that whether the capital market is futures or spot, both the long and short sides need sufficient means. The price is not the final decision of the regulatory authority. There must be various means and tools to allow the market to fully play.Tool of.  There is no doubt that reducing administrative intervention in transactions is in line with the direction of marketization and rule of law. From a mature capital market perspective, it is more a pre-established system than an immediate administrative intervention, so that companies can be listed., Investors have expectations.  Therefore, it is necessary for the A-share market to reduce “nanny-style” supervision and give more play to the market’s ability to regulate itself.In the past, regulators often traded the market, such as restricting institutional purchases or sales, which could easily cause information asymmetry and lead to adverse selection. Therefore, appropriate guidance for reducing the window is required, especially when information is asymmetric.In the future, regulators should be prevented from directly intervening in the market, allowing investors to buy and sell freely in accordance with their own risk appetite and market expectations. The focus of regulation should be to provide investors with more fair trading opportunities and allow investors more opportunities to enter the capital market.Share the dividends brought by economic development.  Of course, reducing intervention does not mean condoning illegal acts. For actions such as sitting on the market or manipulating the market, we need to strengthen supervision after the fact.  It is worth mentioning that when the market gradually entered the downturn in the past, the supervisors accelerated the reform progress.In the second half of last year alone, the supervisory authorities introduced rules including perfecting mergers and acquisitions and reorganization rules, a strict delisting system, strengthening the information disclosure system, effectively protecting investors, and actively cultivating mid-to-long-term investors, and unblocking various asset management products to enter the 北京夜网 capital market.Channel and other policies.  It is foreseeable that when the market makes price discovery possible through a series of institutional arrangements and the market plays a decisive role in the allocation of resources, it will surely enable healthy and stable development and maturity.