After nearly 10 years, China's capital market ushered in the third "National Nine Measures".
On April 12, the State Council issued the "Several Opinions on Strengthening Supervision and Preventing Risks and Promoting the High-quality Development of the Capital Market", which is another major policy in the capital market after the four documents issued by the China Securities Regulatory Commission on March 15. The new "National Nine Articles" put forward the development goals of the capital market in the next five years, 2035 and the middle of this century, pointing out the direction and path for the reform of the capital market.
Judging from the trend of A-shares after the release of the "National Nine Articles" in 2004 and 2014, the market was at a medium and long-term low point at the time of the release of the "National Nine Articles", and both became the trigger points of a big bull market. Among them, after the release of the "National Nine Articles" in 2014, due to the rapid implementation of reform policies, the market showed positive feedback in a short period of time, and the Shanghai Composite Index doubled within a year.
Wu Qing, chairman of the China Securities Regulatory Commission, said in an exclusive interview with the media that compared with the previous two "national nine articles", the opinions issued this time mainly have the following characteristics: First, it fully reflects the political and people's nature of the capital market. He stressed the need to uphold and strengthen the party's overall leadership over the work of the capital market, adhere to the people-centered value orientation, and more effectively protect the legitimate rights and interests of investors, especially small and medium-sized investors. The second is to fully embody the main line of strengthening supervision, preventing risks, and promoting high-quality development. It is necessary to adhere to the principle of stability, strengthen the foundation, strictly supervise and manage, and better serve the overall situation of high-quality economic and social development with the high-quality development of the capital market itself. The third is to fully embody goal-oriented and problem-oriented. In particular, in view of the outstanding problems in the institutional mechanism, regulatory and law enforcement exposed by the stock market fluctuations since August last year, we will make up for the shortcomings, strengths and weaknesses in a timely manner, respond to investors' concerns, promote the resolution of the deep-seated contradictions accumulated in the capital market for a long time, and accelerate the construction of a safe, standardized, transparent, open, dynamic and resilient capital market.
What's new about the third "National Nine Articles"?
Xun Yugen, chief economist of Haitong, believes that the new "National Nine Articles" put forward a series of policies around improving the issuance and listing system, strengthening continuous supervision, and improving the delisting system, so as to further control the "entry gate" and smooth the "exit gate" of listed companies, and promote listed companies to enhance their investment value.
For example, there is still a certain gap between the sustainability of A-share dividends and developed markets in 2022, and the proportion of A-share listed companies that have paid dividends for 10 consecutive years is 31%, lower than that of the United States (44%) and Japan (76%), and the proportion of A-share dividends is expected to increase under policy guidance. In terms of the delisting system, the new "National Nine Articles" proposes to tighten delisting standards and supervision, expand multiple exit channels, and at the same time, also clarify the compensation and relief mechanism for delisted investors, which will accelerate the formation of a normalized delisting pattern for A-shares and optimize the efficiency of resource allocation in the capital market.
Qin Tai, assistant director and chief macro analyst of Huajin Securities, pointed out that the continuous supervision of listed companies should be strictly enforced, and listed companies should be promoted to enhance investment value and strengthen investor protection, strengthen information disclosure supervision, severely punish performance fraud, prevent detours and reduce holdings, and "link" the reduction of holdings with dividends of listed companies, strengthen the supervision of cash dividends, and promote high-quality listed companies to actively carry out repurchases.
Wu Kaida, chief strategy and policy research institute of Tianfeng Securities, also believes that the "National Nine Articles" can clean up the chaos and reshape the value. He pointed out that the "National Nine Articles" in 2004 and 2014 were both issued during the downturn in the stock market, and will play a leading role in the development of the capital market in the future, and the A-share market has also entered a bull market.
According to China Securities Construction Investment, there are four highlights of the "National Nine Articles" policy: one is to coordinate and promote policies at the central level, the second is to greatly increase the cost of violations of laws and regulations and the proportion of equity funds, the third is to make efforts in the field of listing, delisting and dividends, and the fourth is to improve the relevant evaluation standards. The third "National Nine Articles" is a historical inheritance of the previous two and a new indication of the current status quo of the capital market. After the release of the first two "national nine articles", the A-share market ushered in a sharp rise, and this time the "national nine articles" may help the market out of the slow bull.
Author: Fang Ruoyuan
Editor: Li Ang
Producer: Wang Junji
Source: Jiemian News, Sina Finance, etc