Title: "The Devil Plays the Flute - The Registration System for the Growth Enterprise Market is Here"
Date: "2020-04-28"
Categories:
- "log"
Last night, the news broadcast reported that the Thirteenth Meeting of the Central Committee for Comprehensive Deepening of Reforms reviewed and approved the "Overall Implementation Plan for the Reform and Pilot Registration System of the Growth Enterprise Market." Subsequently, the official website of the China Securities Regulatory Commission also released the relevant draft for public opinions.
For the majority of individual retail investors, there are four points that require special attention:
- "Cancellation of Suspension and Resumption of Listing, Addition of Market Value Delisting Indicators"
Optimizations and arrangements have been made in the delisting procedures, standards, and risk warning mechanisms. For example, the delisting procedures have been simplified, and the suspension and resumption of listing have been canceled.
The delisting standards have been improved, with the cancellation of the single continuous loss delisting indicator and the introduction of a combination of financial delisting indicators, such as "negative non-recurring net profit and operating income below one hundred million yuan," as well as the addition of market value delisting indicators. The delisting risk warning and *ST system have been established to strengthen risk disclosure.
- "Threshold for Individual Investors' Access"
Individual investors applying for the opening of trading permissions for the Growth Enterprise Market must have assets in their securities and fund accounts with an average daily value of no less than 100,000 yuan for the 20 trading days prior to the opening of permissions, and they must have participated in securities trading for more than 24 months.
Existing investors can continue to participate in trading, but ordinary investors participating in the trading of Growth Enterprise Market stocks for the first time under the registration system need to sign a new risk disclosure statement.
The aforementioned modifications to the suitability of new and existing investors have caused a sleepless night for many securities firms. This is because the "Measures for the Suitability Management of Investors in the Growth Enterprise Market of the Shenzhen Stock Exchange (Revised in 2020)" was officially implemented on April 28, and many securities firm employees have been working overtime to prepare for it.
- "Limiting the Percentage of Price Fluctuation to 20%"
After the reform of the Growth Enterprise Market, newly listed companies will not have price fluctuation limits for the first five trading days after listing, and thereafter, the daily price fluctuation limit will be relaxed to 20%. Existing companies will implement this simultaneously. This provision is likely to be the most stimulating for ordinary investors at present.
- "Setting a Maximum Declaration Quantity Limit for the Growth Enterprise Market"
A limit will be set for the quantity of a single declaration. The quantity of limit orders should not exceed 100,000 shares per order, and the quantity of market orders should not exceed 50,000 shares per order. At the same time, the current system arrangement of a minimum declaration quantity of 100 shares for the Growth Enterprise Market will be retained.
We can see that it took only 220 days from the announcement to the official launch of the Science and Technology Innovation Board (STAR Market), and 260 days from the announcement to the official opening of the market. The reform of the registration system for the Growth Enterprise Market draws on the experience of the STAR Market, so the time will undoubtedly be greatly shortened. Moreover, the reform of the registration system for the Growth Enterprise Market has been anticipated for a long time, and the exchanges have made more thorough preparations in terms of relevant technological systems and personnel allocation. It is widely expected in the industry that the first batch of companies under the registration system framework for the Growth Enterprise Market will be launched within this year.
This morning, I added positions in brokerage ETF (512000) and purchased blue-chip ETF (159966) in real trading.