In recent years, the mainland's capital market has fully implemented the registration system, improved the multi-level capital market system with Chinese characteristics, and improved the quality of listed companies. The report of the 20th National Congress of the Communist Party of China proposed to improve the function of the capital market and increase the proportion of direct financing.
In the context of the new quality productivity and the new "National Nine Measures", the China Securities Regulatory Commission (CSRC) recently issued 16 measures on the high-level development of capital market services for technology enterprises, accelerating the development of technological innovation and promoting the development of the real economy and science and technology enterprises.
IPOs will return to normal, and the China Securities Regulatory Commission (CSRC) will support science and technology enterprises in earnest
In order to further improve the function of the capital market, optimize the allocation of resources, and make greater efforts to support the high-level development of science and technology enterprises, on April 19, 2024, the China Securities Regulatory Commission issued the "Sixteen Measures for the Capital Market to Serve the High-level Development of Science and Technology Enterprises" (hereinafter referred to as the "Measures"), which highlights the following:
1. Give priority to supporting the listing and financing, mergers and acquisitions, and bond issuance of technology-based enterprises that break through key core technologies, and improve the "green channel" mechanism of the whole chain;
2. Support the listing of high-quality unprofitable technology-based enterprises with key core technologies, great market potential, and outstanding scientific and technological innovation attributes in accordance with laws and regulations;
3. Highlight the positioning of the Science and Technology Innovation Board and the Growth Enterprise Market, set the upper limit of the declaration scale, and serve early-stage technology-based enterprises more accurately;
4. Study the establishment of a shelf issuance system for the Science and Technology Innovation Board and the Growth Enterprise Market, and appropriately improve the inclusiveness of the restructuring and valuation of asset-light technology-based enterprises;
5. Promote the development of the parent fund and give full play to the role of private equity venture capital funds in promoting the growth of technology-based enterprises;
6. Improve the "pre-communication" mechanism for the listing and refinancing of technology-based enterprises, and improve the convenience and effectiveness of consultation for technology-based enterprises. Strengthen the overall planning of market cultivation and improve the efficiency of technology-based enterprises in key service areas.
Baoli researchers learned that the "16 Articles of Science and Technology Enterprises" put forward all-round supportive measures from listing financing, mergers and acquisitions, bond issuance, private equity investment, etc. The establishment of a "green channel" for financing, support for equity financing of technology-based enterprises, improve the supporting system for supporting scientific and technological innovation, concentrate on supporting major scientific and technological research, optimize the listing and financing environment for technology-based enterprises, guide private equity venture capital funds to invest in the field of scientific and technological innovation, as well as the related broadening of exit channels and the promotion of a virtuous cycle of "investment-exit-reinvestment" are all contents that venture capital institutions are currently paying great attention to.
The above measures have also made some industry insiders expect that the A-share IPO market is expected to gradually recover after the "N+1" policy system in the capital market is solicited and the relevant procedures are officially introduced.
The capital market strongly supports technology companies, and hard-core measures have attracted heated discussions among experts
The "Measures" issued by the China Securities Regulatory Commission (CSRC) put forward supportive measures from listing and financing, mergers and acquisitions, bond issuance, private equity investment, etc., aiming to better serve scientific and technological innovation, promote the development of new productive forces, and welcome the "gift package" of capital market policies for science and technology enterprises.
The president of a well-known investment group in Shenzhen said that the 16 measures launched by the China Securities Regulatory Commission have comprehensively covered the key links of capital market services such as listing financing, mergers and acquisitions, bond issuance, and private equity investment, forming a complete policy system, which is not only conducive to improving the ability and efficiency of the capital market to serve technology-based enterprises, but also provides strong policy support for the financing, mergers and acquisitions and development of technology-based enterprises, which will effectively promote the development of technology-based enterprises in the mainland, and then promote the development of new quality productive forces in the mainland.
The dean of the Financial Development Research Institute of Nankai University said that on the whole, the 16 measures provide all-round support for science and technology enterprises, which will help promote scientific and technological innovation and industrial upgrading. The improvement of the capital market's ability to serve technology-based enterprises can more effectively allocate capital resources to enterprises with innovation potential, promote the optimization and transformation of the economic structure, and promote the development of new quality productive forces. At the same time, high-quality technology-based enterprises are the key enterprises that investors pay attention to, and these measures will also help enhance the vitality and competitiveness of the capital market, attract more investors to participate, and form a good market ecology.
The "Measures" place more emphasis on the accuracy of policy support, proposing to "strengthen policy coordination with relevant departments and accurately identify technology-based enterprises". The dean of the Institute of Financial Development of Nankai University said that to accurately identify technology-based enterprises, it is necessary to set clear technical standards and evaluation systems, and conduct expert identification and public recognition according to key core technologies, market potential and scientific and technological innovation attributes. To identify the technological advantages and innovation potential of enterprises, it is necessary to conduct industry analysis and financial investigation in combination with industry development trends and market demand, and evaluate their scientific and technological strength and growth.
The president of a well-known investment group in Shenzhen said that the accurate identification of technology-based enterprises requires the establishment of a scientific, reasonable and operable evaluation system, which at least includes the company's R&D investment, technological innovation capabilities, technology transformation capabilities, market prospects, etc. In addition, it is also necessary to conduct a comprehensive analysis based on the company's financial statements, business development plans and other information.
Equity incentives, mergers and acquisitions, restructuring and refinancing are all important tools for enterprises to become better and stronger, and the "Measures" plan to optimize and introduce a number of relevant systems and rules to better serve technology-based enterprises. The Measures propose to support the establishment of equity incentive plans before the listing of technology-based enterprises, and continue to implement incentives after listing, simplify the implementation procedures of equity incentives, and introduce exemptions for short-term transactions in the implementation of equity incentives as soon as possible.
The president of a well-known investment holding group in Shenzhen said that simplifying the implementation procedures of equity incentives and introducing short-term trading exemption regulations will undoubtedly provide more flexible and convenient equity incentives for science and technology enterprises, reduce their operating costs and risks, and improve the practicability and efficiency of equity incentives, which is of great significance for enhancing the core competitiveness and market competitiveness of science and technology enterprises.
In terms of refinancing, the "Measures" proposes to actively study more financing varieties and methods to meet the needs of science and technology enterprises, and study the establishment of a shelf issuance system for the Science and Technology Innovation Board and the Growth Enterprise Market. The dean of the Institute of Financial Development of Nankai University said that the establishment of a shelf issuance system can improve the flexibility and efficiency of refinancing and meet the capital needs of the rapid development of science and technology enterprises. The deputy dean of the PBC School of Finance of Tsinghua University said that the study of the establishment of a shelf issuance system can meet the multi-stage financing needs of science and technology enterprises, and can reduce the market volatility caused by large-scale financing to a certain extent.
In terms of mergers and acquisitions, the Measures propose to optimize the mechanism for rapid review of small amounts and appropriately improve the inclusiveness of the valuation of asset-light technology-based enterprises. Improving the inclusiveness of the valuation of asset-light technology-based enterprise restructuring will help improve the efficiency of corporate mergers and acquisitions. The president of a well-known investment group in Shenzhen said that asset-light technology-based enterprises usually have the characteristics of high technology content and strong growth, but they often face certain difficulties in restructuring valuation. Therefore, appropriately improving the inclusiveness of valuation can provide more fair and reasonable valuation standards for these enterprises, promote them to achieve industrial upgrading and enterprise transformation through mergers and acquisitions, promote resource integration and complementary advantages, and stimulate market vitality.
In addition, the "Measures" also proposed to increase the innovation of financial products, continue to improve the trading mechanism, urge securities companies to improve the ability of service science and technology innovation, and optimize the service mechanism of science and technology enterprises.
Implement the new "National Nine Articles" and 16 Articles, and promote science and technology enterprises to become better and stronger
In the context of new quality productivity, the state and the China Securities Regulatory Commission have issued a series of policies to support technological innovation and the development of the capital market. The "Several Opinions on Strengthening Supervision and Risk Prevention and Promoting the High-quality Development of the Capital Market" (hereinafter referred to as the "New "National Nine Articles") issued by the State Council in early April clarified the relevant tasks of the capital market in the next stage, actively built a policy system to support "long-term money and long-term investment", and promoted industry institutions to return to their origins and become better and stronger.
In the view of industry insiders, building a policy system to support "long-term money and long-term investment" is a key element to promote industry institutions to become better and stronger, and promoting industry institutions to become better and stronger is also a powerful starting point for building a policy system that supports "long-term money and long-term investment". The effective coordination of the two and the formation of a strong synergy will provide sufficient momentum for the construction of a high-quality capital market that matches the financial power.
To build a high-quality capital market that matches the financial power and better serve the real economy, it is necessary to build a policy system that supports "long-term money and long-term investment", and build a "reservoir" of long-term money. A large number of "long money" entering the market and promoting the formation of a virtuous circle of "diversion of water to create growth" can not only further highlight the role of institutional investors as the "ballast stone" of the stock market and enhance the internal stability of the capital market, but also help attract more foreign funds to enter the market and promote the high-quality opening of the capital market. At the same time, more long-term funds will be invested in new fields and new business forms, which will also become a "catalyst" for key industries and help the construction of a modern national industrial system.
As for how to enhance the strength and service capabilities of industry institutions in the next stage, the new "National Nine Measures" make relevant arrangements, such as strengthening the management of shareholders and business access of industry institutions, promoting industry institutions to strengthen investment banking capabilities and wealth management capacity building, and supporting leading institutions to enhance their core competitiveness through mergers and acquisitions, restructuring and organizational innovation.
With the issuance of the "Sixteen Measures for the High-level Development of Capital Market Services for Science and Technology Enterprises" issued by the China Securities Regulatory Commission, it is believed that in the future, the Science and Technology Innovation Board will continue to adhere to the positioning of "hard technology", the Growth Enterprise Market will serve growth-oriented innovative and entrepreneurial enterprises, and the Beijing Stock Exchange and the National Equities Exchange and Quotations Company will jointly build the main position of serving innovative small and medium-sized enterprises. Major domestic scientific and technological research enterprises will be poised to explode with the help of capital!
As a leading professional investment service and investment consulting enterprise in China, Baoli Investment is promoting the high-quality development of scientific and technological innovation and emerging industries in mainland China with professional strength, and is also constantly discovering value, accelerating the service of more growth-oriented, disruptive and competitive high-tech projects, and empowering science and technology enterprises with a full range of value-added services.
Part of the data comes from: Securities Daily, Financial Circles, etc