Xinhua News Agency, Beijing, May 18 (Xinhua) -- China Securities Journal published an article on May 18 titled "Listed Securities Firms Are Excellent, Strong, and Strong, and the Industry Ecology Continues to Optimize, Need to "Tighten the Mantra"". The article said, "Now is the time for strict supervision! It is believed that the securities industry under strict supervision will usher in a more stable and rapid development. A person from a brokerage firm who has been in the industry for nearly eight years recently told a reporter from the China Securities Journal.
After the promulgation of the new "National Nine Articles", multi-sectoral policies on economic development and optimization of the capital market have been continuously introduced. The China Securities Regulatory Commission (CSRC) recently issued a decision on revising the "Provisions on Strengthening the Supervision of Listed Securities Companies", which highlights goal-oriented and problem-oriented, and clearly requires listed securities companies to strive to return to their origins, become better and stronger, and effectively assume the role of "leader" and "vanguard" in leading the high-quality development of the industry.
The reporter learned that the listed securities companies are full of vigor in practicing "returning to the origin, being better and stronger": on the one hand, they will better serve the real economy by continuously improving their business capabilities such as investment banking, asset management, investment research, and investment education; On the other hand, adhere to the bottom-line thinking, strictly prevent business risks, and consciously consolidate the responsibility of "gatekeeper". Industry insiders said that it is expected that in the future, listed securities companies will be subject to stricter supervision in terms of corporate governance and compliance management, but this is conducive to the continuous optimization of the industry ecology and will be of great benefit to improving the ability to serve the real economy.
(File picture.) Xinhua News Agency)
The supervision of listed securities firms has been strengthened
The new regulations on the supervision of listed securities companies have been upgraded again.
On May 10, the China Securities Regulatory Commission (CSRC) issued the revised Provisions, which will come into effect on the date of promulgation.
Liu Xinqi, chief analyst of Guotai Junan Non-bank Finance, said that the main revisions include clarifying functional positioning, coordinating and standardizing financing behaviors, improving corporate governance, improving information disclosure requirements, and improving investor returns.
Specifically, the first is to optimize the concept of development and coordinate and standardize financing behavior. Listed securities companies are explicitly required to put functionality in the first place. It is required that the IPO and refinancing of securities companies should reasonably determine the scale and timing of financing, strictly regulate the use of funds, focus on the main responsibilities and main businesses, prudently carry out high-capital-consuming businesses, and improve the efficiency of capital use. The second is to improve corporate governance and strengthen internal control and risk management requirements. Securities companies are required to establish a sound corporate governance structure, strengthen the regulation of shareholders and actual controllers, standardize the preparation and disclosure of financial statements, and improve the management of employees and long-term incentive and restraint mechanisms. The third is to improve the information disclosure requirements and cancel the disclosure requirements for the classification results of securities companies. Fourth, improve the level of investor protection. We will further highlight value creation and shareholder returns, attach importance to improving the level of cash dividends, encourage the formation of institutional arrangements for the implementation of share repurchases, and actively improve shareholder returns through multiple dividends and repurchase cancellations throughout the year.
"The "Regulations" aim to narrow the gap between mainland listed securities firms and world-class investment banks." Liu Xinqi said that at present, listed securities companies in mainland China are still facing the problem of "big but not strong", and there is still a big gap between them and the standards and requirements of first-class investment banks and investment institutions in terms of development concepts, internal control and governance, investor protection, and information disclosure. To this end, it is necessary to further revise and improve the "Provisions" according to the current regulatory requirements and the development situation of the industry.
A person from a brokerage firm in North China told reporters that the revised "Regulations" have done a lot to improve corporate governance, strengthen internal control and risk management requirements. This requires brokerages to focus on business quality and risk management in addition to scale and profit growth in the process of operation.
It is reported that the "Provisions" were issued by the China Securities Regulatory Commission in 2009, and before this amendment, they have been revised in 2010 and 2020 respectively. According to industry insiders, the repeated revisions of the "Regulations" show that the regulators are concerned about the development trend of the securities industry and their determination to achieve sustainable development in the future. The China Securities Regulatory Commission also stated that it will continue to strengthen the daily supervision of securities companies, strengthen law enforcement accountability, urge listed securities companies to implement a series of new requirements of the "Regulations", and radiate good experience and practices in practice to the whole industry, so as to promote the high-quality development of securities industry institutions.
Brokerages actively practice to be better and stronger
The "Provisions" clearly require listed securities companies to strive to return to their origins, become better and stronger, and earnestly assume the role of "leader" and "vanguard" leading the high-quality development of the industry. The reporter learned that the brokerage is full of vigor in practicing "returning to the origin, being better and stronger".
The approach adopted by Guojin Securities is "driven by investment behavior and driven by research". According to Guojin Securities, starting from the company's own characteristics, it will achieve high-quality development through efforts in four aspects by giving full play to the traction role of investment banks.
First, the sponsorship business of investment banks has strengthened its focus on the "investability" of listed companies. "We require investment banking practitioners to continue to strengthen the cultivation of valuation and pricing, sponsorship and underwriting capabilities, further strengthen the driving role of industry research in sponsorship business, and enhance value discovery capabilities." Second, investment banks continue to strengthen their comprehensive service capacity building and gradually improve the cross-system business linkage mechanism. Third, we will steadily expand our cross-border service business by focusing on the overseas investment and M&A business of existing domestic customers, and actively study how to help Chinese enterprises "go global" through professional services such as investment and financing, financial advisory, and cross-border M&A, so as to enhance the facilitation of cross-border investment and financing. Fourth, we will continue to consolidate the Company's comprehensive compliance management system and comprehensive risk management system to effectively ensure the Company's operational compliance and controllable business risks.
"Securities companies should consciously consolidate the responsibilities of 'gatekeepers'." Western Securities said that in the sponsorship business, it will effectively strengthen the implementation of the responsibility of the sponsor institution for the whole process of issuance and listing, increase the supervision of the whole chain of issuance and sponsorship business, and ensure the healthy and orderly environment of the capital market by enhancing the stability and binding force of the system, so as to enhance the sense of gain of investors and the stability of the capital market. In addition, we adhere to the bottom-line thinking, establish and improve the sponsorship business system, refine the practice standards and operating procedures of project contracting and project establishment, due diligence, kernel and material submission, pricing underwriting and continuous supervision, etc., so as to comprehensively improve the quality and efficiency of issuance and listing counseling.
Guosen Securities has carried out the action of "double improvement of quality and return", focusing on its main responsibilities and main business, strictly controlling risks, and helping to build a financial power. First, give full play to the advantages of professional capabilities and vigorously support the high-quality development of the real economy; The second is to oversee the overall development of the company with high-quality development, fully implement the new development concept, and solidly promote the transformation and upgrading of various businesses and management improvement; The third is to practice the concept of investor-oriented, coordinate the dynamic balance between business development and shareholder returns, and share the company's development results with investors through a sustained, stable and scientific profit distribution policy; Fourth, we will consolidate the foundation of corporate governance, conscientiously implement the relevant requirements on corporate governance, internal control, and compliance and risk control, continue to improve the level of standardized operation, and create a good corporate culture.
Enhance the ability to serve the real economy
In the context of continuous strict supervision, industry insiders said that it is expected that in the future, listed securities companies will be subject to stricter supervision in terms of corporate governance and compliance management, but this is conducive to the continuous optimization of the industry ecology and will be of great benefit to improving the ability to serve the real economy.
"The issuance and implementation of the "Provisions" will help to supervise and guide the securities industry to fully practice the road of financial development with Chinese characteristics, fully implement the provisions of the new 'National Nine Articles', and comprehensively improve the level of serving the real economy and investors." Luo Huizhou, an analyst at Huaxi Securities, said frankly.
Xu Fengyu, a non-bank financial analyst at Minmetals Securities, said that securities companies are the most important link connecting the real economy and the capital market, and the "Regulations" have strengthened the important function of serving the real economy, and at the same time are conducive to the improvement of investor structure, guide the flow of funds to new quality productivity, national strategic emerging industries, and promote national industrial transformation and upgrading.
In fact, brokerages have strengthened their ability to serve the real economy by strengthening their own functional construction.
Huaxin Securities said that it will strive to fulfill the main responsibilities of securities companies as intermediaries, and implement the main responsibilities of "financial service to the country" to the practical level.
The reporter learned that in recent years, Huaxin Securities has been based on the characteristic positioning of science and technology brokers, constantly building and strengthening the advantages of financial technology, and looking for the transformation and development of Huaxin Securities. For example, the investment banking business closely follows the policy guidance, tilts financial resources to technology-based start-ups, innovative companies, new industries, and new tracks, and strives to serve the real economy and small and medium-sized enterprises. In terms of asset management business, Huaxin Securities has built a large platform for the deep integration of asset management, large brokerage and wealth management, and strives to cultivate an ecological environment integrating comprehensive investment, trading, research and collaborative services, so as to provide effective means of maintaining and appreciating the value of customer assets.
Huatai Securities said that it will continue to stick to its business roots, always put its own functional construction in the first place, strengthen bottom-line thinking and risk management capabilities, take investors as the foundation, improve the "one Huatai" customer service system, in-depth layout of the upstream and downstream of the industrial chain, focus on improving the quality of listed companies, better serve the medium and long-term capital market, and do a good job as a value finder of high-quality listed companies and a booster of new quality productivity. (ENDS)
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