【Depth】Wu Qing's new 100 days: the passion of "crater", A shares rose 10.26%

Interface News

2024-05-16 08:34Posted on the official account of Beijing Jiemian News

Interface News Reporter | Chen Jing

Interface News Editor | Zeng Lingjun

On May 16, Wu Qing, chairman of the China Securities Regulatory Commission, took office for 100 days.

On February 7, Wu Qing officially took over from Yi Huiman and became the 10th chairman of the China Securities Regulatory Commission. At that time, A-shares fell to the "freezing point" moment, and market confidence was insufficient. This position has always been called a "crater" by the outside world, and it is not easy to do a good job, so you can imagine the pressure that Wu Qing faced at the beginning of his tenure.

When we are ordered in danger, there will inevitably be changes. After taking office, Wu Qing showed his speed and passion to the outside world, carried out intensive research work, and even interviewed individual investors, during which a number of strong regulatory documents were issued to govern the market with an iron fist, and the release of the new "National Nine Articles" opened a new round of reform for the capital market.

The numbers don't lie. In the past 100 days since Wu Qing's new appointment, the A-share market has rebounded significantly, and it has been in the red for 8 consecutive trading days after his new appointment, and returned to above 3,000 points on February 23, and the Shanghai Composite Index has recovered all the losses in 2024. As of the close of trading on May 15, the Shanghai Composite Index closed at 3,119.90 points, up 10.26% from 2,829.70 points on the day Wu Qing took office.

A person close to the regulator commented on Jiemian News, "Wu Qing has a deep background in the securities regulatory system and has rich experience in the supervision of securities firms, funds and other institutions. His experience working in government may have given him a more diverse and well-rounded global perspective. ”

Financial regulation is a long-term success, and 100 days may be just the beginning. "The market expects Wu Qing's professionalism and strategy in rescuing and stabilizing the market to lead the creation of a new situation in China's capital market." said the above-mentioned person close to the regulator.

Intensively carry out research and open up the way of speech

Wu Qing has extensive experience in front-line supervision, and because of his courage and courage in solving difficult problems, he is considered to be the best candidate to revive confidence in the capital market at present.

Since the beginning of 2024, the A-share market has adjusted sharply, with the Shanghai Composite Index once falling below the 2,800 and 2,700 point mark, and the market's concerns about systemic risks have risen. How to do a good job in risk prevention and handling in key areas, be vigilant against the sharp rise and fall of the market, and protect the rights and interests of investors have become important topics after Wu Qing took office.

Within a month after taking office, Wu Qing intensively carried out a series of research work, and at the same time solicited suggestions from all walks of life, and the work of the China Securities Regulatory Commission showed a new trend.

On February 18, at the beginning of the Spring Festival, the China Securities Regulatory Commission held a series of more than 10 symposiums, which were attended by experts and scholars, small and medium-sized investors, listed companies, enterprises to be listed, securities and fund management institutions, accounting law firms, private equity institutions, and foreign-funded institutions.

Chairman Wu Qing made an opening remarks. The common feeling of everyone is that he has a sincere attitude, no official tone, straightforward speech, clear thinking, easy to communicate, and is full of expectations for the change of leadership of the China Securities Regulatory Commission decided by the central government at this critical time. The well-known economist Watson publicly responded to his feelings about participating in the CSRC expert symposium.

Tian Xuan, deputy dean of Tsinghua University's PBC School of Finance, told Jiemian News, "We have observed a positive signal: the new chairman of the China Securities Regulatory Commission is seeking advice from the market and the public, and planning the future of the capital market with an open and pragmatic attitude." This kind of science-based decision-making and the pursuit of real and pragmatic working methods have undoubtedly injected a 'booster' into the capital market. ”

On the afternoon of February 19, Wu Qing also led a team to the business department of the brokerage company to discuss and exchange ideas with more than 10 representatives of individual investors. It is understood that Wu Qing's objects of this discussion are all customers of the sales department.

At the symposium, the participants focused on the current hot issues of market concern and the institutional mechanisms and policy issues restricting the long-term development of the capital market, including suggestions to strictly control IPO access, strengthen the supervision of the whole process of listed companies, resolutely clear out unqualified listed companies, fundamentally improve the quality of listed companies, and increase investment returns.

Wu Qing's reaction was gratifying. He listened carefully, recorded in detail, and responded positively, all of which showed an open attitude and pragmatic style of asking questions from the market and the people. Some participants told Jiemian News.

Jiemian News learned from regulators that the China Securities Regulatory Commission is evaluating and summarizing the practice of issuance supervision in recent years, focusing more on strictly controlling IPO access, improving the quality of listed companies from the source, and studying and improving relevant policy mechanisms.

"The capital market involves all aspects, and the more complex and severe the situation, the more we must speak widely, brainstorm and build consensus." The responsible comrade of the China Securities Regulatory Commission said.

Strict supervision, playing a number of sets of policy "combination punch"

At the beginning of Wu Qing's tenure as chairman of the China Securities Regulatory Commission, some people in the securities industry bluntly said to Jiemian News that the era of "seamless financial supervision" may come. Wu Qing's career has a deep connection with the capital market, not only witnessing the development of the capital market, but also participating in many major events that have a far-reaching impact on the capital market.

In March 2009, Wu Qing began to serve as the director of the fund department, and soon after taking office, he cracked down on the "rat barn". From the "Zhang Ye case" of Rongtong Fund in June 2009 to the "Liu Hai case" and "Tu Qiang case", many fund personnel were investigated for "rat barn".

This style of work continues to this day. On the afternoon of March 6, Wu Qing appeared at the press conference on the economic theme of the second session of the 14th National People's Congress. This is his first public press conference since taking office to respond to market concerns.

Wu Qing said frankly that he has not yet arrived at the post for a full moon, and he is still a rookie. He is combing through a huge amount of information and is still in the process of learning.

However, as for the next step, Wu Qing has a clear context. He said that to further promote the high-quality development of the capital market, from the regulatory aspect, the most important thing is two key words: one is strong and the other is strict. To be strong, we must strengthen the foundation and strengthen the foundation. Strict, we must strictly supervise and strictly manage.

Since Wu Qing took office, the regulator has launched a number of targeted policies, which are known as the "three fires" by the market.

The first "fire" burned to the securities lending business. At the beginning of Wu Qing's tenure, due to the downward pressure on the business development and stable operation of the financing business, the guarantee of the stock pledge business or the decline in the market value of the pledge, the China Securities Regulatory Commission (CSRC) then issued regulations to deal with the risk of forced liquidation, and guided securities firms and other institutions to increase the flexibility of the liquidation line, reduce the risk of forced liquidation, and relieve the pressure.

A brokerage practitioner commented to Jiemian News, "The supervision of securities lending business has made another 'combination punch', suspended the new scale of refinancing and put forward for the first time that it is strictly forbidden to borrow and lend securities in disguised T+0." The disguised T+0 behavior of securities lending takes advantage of the fact that borrowed securities can be sold on the same day, and through the combination of buying behavior, through selling high and buying low, the income of intraday fluctuations in stock prices can be obtained. The current restrictions on this behavior will help protect the fair trading rights of the majority of small and medium-sized investors. ”

The move had an immediate effect and calmed market volatility. Since the announcement of the suspension of the scale of new refinancing bonds, the stock of refinancing bonds has been declining rapidly. As of February 21, the balance of A-share securities lending was 43.936 billion yuan, a new low since July 2020. As of May 10, the balance of securities lending in the two cities was 39.11 billion yuan, and the trading activity of financing customers declined.

The second "fire" burns vectorization. On February 20, the Shanghai and Shenzhen stock exchanges imposed a trading suspension on Ningbo Lingjun and initiated a public reprimand. Founded in 2014, Lingjun Investment is a quantitative trading giant in China, with an external customer asset management scale of more than 60 billion yuan, and is known as the "new four kings" of the quantitative circle along with Jiukun, High-Flyer and Mingtun.

For quantitative trading, Wu Qing said that based on our national conditions, we should highlight fairness, establish and improve the regulatory system, pursue advantages and avoid disadvantages, and standardize development.

"This regulatory measure can be regarded as a very down-to-earth surprise for shareholders", a senior securities industry person told Jiemian News, "There has been a long debate about T+0 or T+1 in China." At the beginning, we were also T+0, but we lacked corresponding regulatory tools, which led to institutions taking advantage of the information gap to play with retail investors. This is a sign that our current policy should prioritize investor protection. ”

The third "fire" burned to listed companies. On March 15, the China Securities Regulatory Commission issued the "Opinions on Strictly Controlling the Access to Issuance and Listing to Improve the Quality of Listed Companies from the Source (Trial)", focusing on improving the quality of listed companies from the source and proposing eight policy measures.

Wu Qing said that major shareholders, actual controllers and senior management must have such an awareness - listed companies are public companies with the surname "public", so they must have the awareness and responsibility of such a surname "public", and continue to create value for the public.

"Shanghai Silchip Technology Co., Ltd., as the first regulatory penalty for unlisted companies, is also a clear statement of fraud." The above-mentioned securities industry people commented on the interface news.

The above-mentioned person in the securities industry said, "After the new official took office, the flame of supervision burned to the pre-IPO company, which has pioneering significance and strong warning effect." This administrative penalty is of great significance, demonstrating the resolute position and enforcement of the regulator. For ordinary investors, this is a cause for celebration, indicating that market supervision will be tighter and the determination to protect the rights and interests of investors will be unwavering. ”

The number exceeded 100, and brokers lined up to receive fines

Under the comprehensive registration system, securities firms, as the first line of defense for professional verification and verification, assume the role of "gatekeeper" more and more important. Wu Qing is known as the "butcher of the brokerage" in the industry, and it is not only his own job but also his old profession to clean up the original source of the brokerage.

In 2005, Wu Qing was appointed as the director of the Risk Management Office of the Securities Company of the China Securities Regulatory Commission, specializing in the risk management of problem securities firms. During his tenure, he disposed of 31 illegal securities companies, including Southern Securities, Minfa Securities, and "Delong" brokerages, and effectively resolved the looming securities market crisis at that time.

Since Wu Qing took office, the regulator has dealt a heavy blow to all kinds of business of institutions, and the areas covered by fines have extended from the past brokerage and investment banking business to many businesses such as self-management, credit, derivatives, and overseas.

A brokerage analyst told Jiemian News, "At present, the regulator has clarified the focus of 'two strong and two strict', requiring brokerages to put functionality in the first place." It is expected that in the future, eliminating regulatory blind spots, correcting the positioning of industry institutions, and highlighting the functionality of industry institutions will become the focus of the phased work of regulatory authorities. ”

According to the incomplete combing of interface news, various regulatory agencies have issued more than 100 fines to more than 30 brokerages, and the number of fines and penalties of brokerages are increasing and stricter than in the past. At present, nearly half of the listed securities companies have received fines, and many leading securities firms, including "three Chinas and one China", are all listed.

In terms of the severity of the punishment, the most serious punishment is the filing of a case for investigation. The data shows that in the punishment against brokerages in 2023, there is no record of filing and investigating measures. However, since the beginning of 2024, three securities firms, Haitong Securities, CITIC Securities and Soochow Securities, have been investigated by the CSRC.

"In the future, the refinancing business of listed companies may be classified as 'high-risk', and sponsors need to 'endorse' the compliance operation and authenticity of the information. This may lead to a significant increase in the barriers to entry for related businesses. Wang Jiyue, a senior investment banker, told Jiemian News.

A senior investment banker told Jiemian News that "the continuous supervision of enterprises after the initial public offering, private placement projects and convertible bond projects all have the continuity of capital operation and are interrelated." Regulators stressed the need to implement the full chain responsibilities of intermediaries, warning investment banks not only to strictly abide by the rules in IPO projects, but also to maintain a high degree of vigilance and caution in other businesses. ”

From 2829.70 points to 3119.90 points, A shares rose 10.26%

From 2829.70 points to 3119.90 points, in the first 100 days after Wu Qing took office, the Shanghai Composite Index rose by 10.26%, and the ChiNext rose by 7.73%. Behind the strong performance of A-shares is not unrelated to the new chairman's regulatory approach and logic.

Wang Jiyue said, "Wu Qing has a good overall feeling since taking office, the main contradictions in the market are very accurate, and the market response is also good, which has risen to 3100." ”

In terms of driving the market up, Wang Jiyue analyzed, "mainly from vigorously cracking down on violations of laws and regulations and all kinds of chaos, supporting high-quality companies, encouraging dividends, etc., so the overall rise is the industry leader, and the fall is ST." The overall idea of the introduction of the National Nine Articles and the upgrading of the policy to the level of the State Council is to first solve the problem of the stock market, form a good market ecology, and then solve the problem of the incremental market, so the impact of new shares and refinancing is greater. ”

On April 12, the new "National Nine Articles" were released, opening a new round of deepening reform of the capital market. In more than a month, the China Securities Regulatory Commission and the stock exchange have revised the supporting rules for issuance supervision, listed company supervision, delisting supervision, securities company supervision, transaction supervision and other aspects, and the "1+N" policy system of the capital market has been accelerated.

"Under the policy environment of the new 'National Nine Articles', ST companies face the risk of direct delisting. In particular, the behavior of 'backdoor listing' will be strictly supervised, and the behavior of using 'shell resources' to carry out malicious speculation and market manipulation will be precisely cracked down. This will greatly reduce the speculative behavior of malicious speculation through backdoor listing, and safeguard the basic rights and interests of investors. Tian Xuan analyzed.

There is no turning back, and the pace of change will not stop. The 100 days in office may be just the beginning for Wu Qing. At present, the capital market is still facing some structural problems, such as the uneven quality of listed companies, repeated prohibitions on counterfeiting, and how to make supervision more effective.

A regulator told Jiemian News, "Based on his rich experience in the securities regulatory system in the past, especially in dealing with securities risks and cracking down on illegal trading behaviors, it is expected that he will strengthen the standardized management of the market, enhance transparency and protect the interests of investors." All parties in the market also hope that he can promote the internationalization process of the capital market and enhance the influence of the mainland capital market in the world. ”

How this series of goals will be achieved, the market will wait and see.

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