Summary of the highlights of the four major securities reports: May 16

Xinhua Finance and Economics, Beijing, May 16 -- The highlights of the four major securities reports are summarized as follows:

China Securities Journal

• The China Securities Regulatory Commission (CSRC) promulgated regulations on the management of programmatic trading in the securities market

The China Securities Regulatory Commission reported on May 15 that the China Securities Regulatory Commission formulated and issued the "Regulations on the Administration of Programmatic Trading in the Securities Market (Trial)", which will be officially implemented from October 8. The "Administrative Provisions" proposes to strengthen the supervision of high-frequency trading, aiming to promote the development of programmatic trading norms and maintain the order of securities trading and market fairness. In the eyes of industry insiders, the "Administrative Provisions" closely focus on the main line of strengthening supervision, preventing risks and promoting high-quality development, adhere to the general idea of "pursuing advantages and avoiding disadvantages, highlighting fairness, effective supervision, and standardized development", and make all-round and systematic provisions on the supervision of programmatic trading in the securities market (commonly known as "quantitative trading"), which is an important measure to strengthen the supervision of market trading behavior.

• The China Securities Regulatory Commission (CSRC) held the 2024 "May 15 National Investor Protection Publicity Day" to integrate insurance into all aspects of the whole process of system construction, supervision and law enforcement

On May 15, the China Securities Regulatory Commission (CSRC) held the 2024 "May 15 National Investor Protection Publicity Day" in Beijing, with the theme of "Caring for Investors and Working Together to Promote High-quality Development and Boost Investor Confidence". Wu Qing, chairman of the China Securities Regulatory Commission, said in his speech that the China Securities Regulatory Commission will consistently implement investor protection throughout the whole process of capital market system construction and regulatory law enforcement, further consolidate the institutional foundation of investor protection, further promote the improvement of the quality of listed companies, further promote industry institutions to improve the level of professional services, further crack down on securities violations and crimes in accordance with the law, and further smooth the channels for investor rights protection and relief. In addition, the China Securities Regulatory Commission will adapt to the needs of the development of new productive forces, optimize institutional arrangements such as issuance and listing, mergers and acquisitions, and equity incentives, and support those companies with innovation and development potential to accelerate their efforts to become better and stronger, not only to support the healthy growth of high-quality emerging enterprises, but also to support the transformation and upgrading of high-quality traditional enterprises, so that investors can better share the fruits of high-quality economic development.

• Industrial integration, market value management, and large buyers of state-owned assets play a combination of mergers and acquisitions

In the past year, many state-owned institutions have "carried" large sums of money in the market to find the "prey" of acquisition. Judging from the M&A data of A-share listed companies, in recent years, local state-owned institutions have become big buyers in the M&A of listed companies. Behind this, state-owned assets not only have the goal of optimizing the economic layout and structural adjustment through mergers and acquisitions, but also have the demand for quickly merging into the revenue statements of high-performing leading enterprises to jump in the scale of assets.

Shanghai Securities News

• The first "5.15" activity after the new "National Nine Articles" released multiple signals

Industry insiders said that the capital market is a market that "concerns the vital interests of hundreds of millions of families and hundreds of millions of people", and there is a long way to go to protect the legitimate rights and interests of investors. After the promulgation of the new "National Nine Articles", the first "5.15" activity released multiple signals: first, the next stage from regulatory concepts to system design, to regulatory law enforcement, will more reflect the protection of the legitimate rights and interests of investors, especially small and medium-sized investors; Secondly, the capital market will give more prominence to "strengthening the capital and strengthening the foundation" and "strict supervision and strict management", and respond to investors' concerns with the improvement of the quality of listed companies and the due diligence of securities and fund institutions; Finally, "zero tolerance" to crack down on violations of laws and regulations in the capital market is still the focus of the next stage, and combined with industry practice, the "toolbox" of diversified dispute resolution in the capital market is expected to continue to enrich and innovate to effectively protect the legitimate rights and interests of investors.

• Low-altitude economy "soars into the sky", listed companies in the industrial chain rush to the beach to "fly high"

On May 15, the concept of "low-altitude economy" bottomed out and rebounded, leading the market hotspots, Xinyan shares, Shanggong Shenbei, Andawell, Jilin Chemical Fiber, Huafeng Microfiber, Rice Information and other company stocks followed up. At the end of 2023, the Central Economic Work Conference listed the low-altitude economy as one of the strategic emerging industries. This year's government work report was written into the low-altitude economy for the first time. Recently, with the introduction of various relevant policies by many local governments, a number of listed companies have joined the team of developing low-altitude economic industries, and have posted relevant layout plans.

• In April, the market share of lithium iron phosphate exceeded 70%, and industrial chain enterprises ushered in new opportunities

On the evening of May 15, NIO, a representative of China's new car-making forces, released its sub-brand "Ledao", and some of its pure electric new energy vehicles are equipped with BYD's lithium iron phosphate batteries. The reporter noticed that lithium iron phosphate batteries are being widely recognized by car companies, and the loading volume is showing a significant growth trend. Statistics from China Automotive Power Battery Industry Innovation Alliance (hereinafter referred to as "Innovation Alliance") show that since the beginning of this year, the market share of new energy vehicles with lithium iron phosphate batteries in China has shown a continuous growth trend. Among them, the market share in April exceeded 70%, significantly surpassing ternary lithium batteries. At the same time, benefiting from the increase in the popularity of lithium iron phosphate batteries in overseas markets, lithium iron phosphate batteries have also begun to rise in terms of export proportion.

Securities Times

• Clear framework of programmatic trading rules, high-frequency quantification, and strong supervision

On May 15, the China Securities Regulatory Commission (CSRC) issued the revised Administrative Provisions on Programmatic Trading in the Securities Market (for Trial Implementation) (hereinafter referred to as the "Administrative Regulations"). The "Management Regulations" will be officially implemented on October 8, allowing sufficient transition period and market preparation time. A number of leading institutions said that the next step will be to actively optimize investment strategies in accordance with the requirements of regulations and participate in market transactions in accordance with laws and regulations. Industry insiders pointed out that the "management provisions" is an important measure to implement the provisions of Article 45 of the new "Securities Law", is the implementation of the central financial work conference to comprehensively strengthen the "five major supervision", especially the specific embodiment of strengthening the requirements of behavior supervision, but also to implement the new "national nine" on the "introduction of procedural transaction supervision regulations, strengthen the supervision of high-frequency quantitative trading" requirements of an important means, is an important step to improve the basic system of the capital market, is an important embodiment of strengthening the supervision of behavior, has long-term and positive significance.

• In April, the scale of bank wealth management increased by more than 2 trillion yuan, and the issuance of rights-bearing products accelerated

On May 15, the data summary exclusively obtained by the reporter showed that 11 institutions, including 5 state-owned bank wealth management companies (except China Post Wealth Management) and 6 joint-stock bank wealth management companies, increased by about 2.02 trillion yuan in April, reversing the downward trend in March in one fell swoop. At a time when more attention has been paid to wealth management products with rights, many people in the industry have called for the expansion of sales channels, such as brokerages and the Internet, so that products can reach more young customers. At the same time, the sales of wealth management products with rights face difficulties such as customer perception and risk assessment restrictions, wealth management companies should focus on the holding experience of investors, carry out more services, and innovate mechanisms, such as appointment subscription, regular payment, target profit, co-investment, etc., so that the wealth management products with rights have the functions of taking profit and stop loss and attracting more potential customers.

• Strong supervision helps the capital market to be stable and far-reaching The full month of the new "National Nine Articles" 25 listed companies were placed on file for investigation and a number of intermediaries were heavily fined

At the level of listed companies, a total of 25 listed companies have been investigated by the CSRC in the past month, with an average of 1 listed company being filed every working day. With the efforts of third parties to standardize their practice and be diligent and conscientious, some "problematic companies" have been exposed in the process of financial report disclosure, and the regulatory measures of the regulator have become more "targeted". At the same time, the handling of cases has also continued the main tone of strictness, speed and seriousness, and the frequent occurrence of cases that took only one month to investigate shows that the regulators are improving their efficiency and response speed. It is worth noting that the situation of "multiple investigations in one case" is also gradually becoming common. A financial fraud case involving Dahua Certified Public Accountants and 4 securities firms. Intermediaries are the "gatekeepers" of the market, but also the "engine" of the market, industry insiders said that this new trend reflects the importance of regulators to the role of intermediaries, focusing on not diligent, not responsible, tightening and compacting the "gatekeeper" responsibility, urging and guiding intermediaries to improve the quality of practice.

Securities Daily

• In 2023, the China Securities Regulatory Commission will impose 539 administrative penalties and confiscate 6.389 billion yuan

On May 15, the China Securities Regulatory Commission (CSRC) released a summary of the enforcement situation in 2023. Since 2023, in accordance with the requirements of "comprehensively strengthening financial supervision", the China Securities Regulatory Commission has strengthened political guidance, faithfully performed its duties, pooled the joint efforts of the system, cracked down on all kinds of violations of laws and regulations with "zero tolerance", and strived to achieve "long teeth and thorns" in regulatory law enforcement, strong foundation, strict supervision and strict management, and make every effort to maintain the smooth operation of the capital market, protect the legitimate rights and interests of investors, and provide a strong legal guarantee for the high-quality development of the capital market.

• The number and scale of bond ETFs have increased Experts say that the total market size is expected to exceed 100 billion yuan this year

On May 14, the scale of Ping An China Bond Medium and High Grade Corporate Bond Spread Factor ETF (hereinafter referred to as "Corporate Bond ETF") under Ping An Fund exceeded 10 billion yuan, reaching 10.017 billion yuan, becoming the third largest bond ETF in the whole market. At the same time, since the beginning of this year, the bond ETF market has continued to heat up, with the number and scale of products expanding, and almost all products have achieved floating profits. Wang Renzeng, fund manager of Ping An Fund Corporate Bond ETF, said: "In 2024, bond ETFs will continue the rapid growth momentum of last year, and the total market size is expected to exceed 100 billion yuan. ”

• Since the beginning of this year, the boards of directors of 505 listed companies have requested the general meeting of shareholders to grant the authorization of "simplified procedure for private placement".

The non-public issuance of shares to specific targets through the simplified procedure is also commonly referred to by the market as "simplified procedure private placement" or "small amount of rapid financing", which is increasingly favored by listed companies because of its convenient procedure and efficient financing. According to the statistics disclosed on the website of the Shanghai and Shenzhen North Stock Exchanges, as of the close of trading on May 15, a total of 505 listed companies in the A-share market have disclosed relevant announcements requesting the general meeting of shareholders to authorize the board of directors to issue shares to specific targets through simplified procedures.

Editor: Wang Yuanyuan

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