According to Xinhua, the stock issuance registration system, a seemingly professional word, is familiar to those who care about the stock market. For a period of time, it used to be the focus of the market, and it once caused a lot of waves. In the past two years, for various reasons, the word has gradually faded out of sight.
On the 23rd, a draft decision submitted to the Standing Committee of the National People's Congress for review of the registration system reform returned to the public eye.
The registration system reform authorization period is extended to 2020
On the 23rd, the "Decision on the Extension of the Relevant Provisions for the State Council on the Adjustment and Application of the Securities Law of the People's Republic of China in the Implementation of the Reform of the Stock Issuance Registration System (Draft)" was submitted to the Standing Committee of the National People's Congress for deliberation and it is proposed to extend the relevant authorization for another two years. Until February 29, 2020.
Such a long line of words means that the time limit for allowing the breakthrough of the securities law to promote the reform of the registration system has arrived, but the reform of the registration system has not yet matured, and now this period has to be extended for another two years.
In that year, the reason for authorizing the adjustment of the applicable law was very simple: the reform of the stock issuance registration system conflicted with the relevant provisions of the current securities law. Before the securities law could be amended, the National People’s Congress Standing Committee authorized the State Council to adjust the applicable securities in the reform. law.
The proposed extension is because the decision of the last National People's Congress Standing Committee to approve the application of the deadline was made on December 27, 2015, and will be implemented from March 1, 2016, with a term of two years. It will expire on February 28, 2018.
Steady progress in the reform of the registration system has not changed
The extension of this application means that the registration system reform is still steadily advancing.
But this does not mean that the registration system reform will soon be implemented.
Over the years, registration reform has been a voice in the industry.
China's current stock issuance system is an approval system. This has guaranteed the quality of listed companies to a certain extent, but it also brought about problems such as high approval costs and low efficiency. Even at some time, it was forced to suspend the issuance of new shares, resulting in the issuance of new shares.
In November 2013, the "Decision of the Central Committee of the Communist Party of China on Comprehensively Deepening Reform of Some Major Issues", which was deliberated and adopted by the Third Plenary Session of the 18th CPC Central Committee, clearly stated that the reform of the stock issuance registration system should be promoted.
This is the first time the registration system has been written into the party.