Liu Wei, member of the National Committee of the Chinese People's Political Consultative Conference: Optimize the refinancing policy to help science and technology enterprises grow and develop

On September 14-17 and October 11-14, the special research team of the Economic Committee of the National Committee of the Chinese People's Political Consultative Conference (CPPCC) focused on "promoting the coordinated development of finance and manufacturing industry" and successively visited dozens of manufacturing enterprises and financial institutions in Taiyuan, Linfen and Yuncheng in Shanxi Province, Wuhu and Hefei in Anhui Province and Shucheng County in Anhui Province. At the same time, the key proposal of the National Committee of the Chinese People's Political Consultative Conference "Optimizing Refinancing Policies and Helping Science and Technology Enterprises" was also supervised in conjunction with this survey, and Liu Wei, the relevant proposer, member of the National Committee of the Chinese People's Political Consultative Conference and chairman of Jiadu Technology Group, was invited to participate in the research activities.

Shang Fulin, director of the Economic Committee of the CPPCC National Committee and Liu Wei, member of the CPPCC National Committee, visited and investigated

On the 19th, the People's Political Consultative Conference Daily published an article signed by Liu Wei, a member of the National Committee of the Chinese People's Political Consultative Conference, entitled "Optimizing Refinancing Policies to Help Science and Technology Enterprises Grow and Develop", the full text of which is as follows:

As one of the important starting points for increasing the proportion of direct financing, refinancing is quite important for the high-quality development of listed companies. Since 2012, the refinancing market-oriented constraint mechanism has been continuously improved, funds have gradually returned to the origin of value investment, and with the landing of the registration system concept with information disclosure as the core, measures such as further streamlining and optimizing the refinancing and issuance conditions and giving play to the refinancing market-oriented issuance pricing mechanism have been on the string.

Capital is the lever of entrepreneurial innovation, and as an important tool for refinancing in the capital market, it has distinct industrial and contemporary characteristics. At present, the refinancing and issuance adopts the method of one review and one issuance, if the capital demand of the enterprise is in the market undervaluation stage, it will lead to the dilution of the equity of the original shareholders by the issued share capital; at the same time, if the issuance volume is large, the intensive reduction brought about by the centralized lifting of the restriction on the sale of newly issued shares will easily aggravate the stock fluctuations of the listed company, which is not conducive to the stability of the capital market. In addition, for innovative technology enterprises, the demand for investment funds in the research and development stage is large, and the use of refinancing on the use of raised funds is more restrictive, which does not match the continuous innovation business model of science and technology enterprises, which is not conducive to the use of direct financing by technology enterprises to grow and develop.

To that end, two proposals were made.

First, in terms of issuance methods, consideration may be given to the pilot "shelf issuance" system in line with international standards.

That is, a review, within the approval period of the enterprise can be timely in the time of the division of funds. At present, the system is adopted for the issuance of corporate bonds in China. The adoption of the "shelf issuance" system in refinancing is conducive to reducing the audit and regulatory pressure of the exchange and improving the efficiency of approval; second, the enterprise can flexibly choose the issuance window period within the period of time, reasonably arrange the scale of securities issuance at each stage according to the market situation and the needs of enterprise funds, "how much to use", avoid excessive financing within a period of time, and reduce the financing cost of enterprises. In addition, the batch issuance can alleviate the fluctuation pressure on the stock price caused by the centralized reduction of restricted shares after the lifting of the ban.

Second, in view of the operational characteristics of innovative science and technology enterprises, improve the inclusiveness of the use of raised funds.

For the capital needs of science and technology enterprises, we can consider optimizing the use of refinancing funds, including improving the inclusiveness of capital expenditure, allowing a certain proportion of funds to be used for expensed research and development expenditure, etc., and accelerating technological breakthroughs and industrial landing by increasing long-term funding support for science and technology enterprises. In addition, with the deepening of China's mixed ownership reform and the standardization of the public-private partnership (PPP) model, the PPP model is increasingly adopted for construction in many information infrastructure construction projects of "new infrastructure". Therefore, it is of great significance to encourage science and technology enterprises to participate in new infrastructure construction and alleviate the medium- and long-term capital needs of enterprises by considering improving the inclusiveness of the funds raised for various new infrastructure PPP projects.

Text | Liu Wei, member of the National Committee of the Chinese People's Political Consultative Conference and chairman of Jiadu Technology Group