Interview with Zhang Haiwen of Guoxin Securities: In the face of the new "National Nine Articles", securities companies should pay more attention to corporate quality and market risks

Interface News Reporter | Chen Jing

In April this year, the State Council issued the "Several Opinions on Strengthening Supervision and Preventing Risks and Promoting the High-quality Development of the Capital Market" (hereinafter referred to as the "Opinions" or the "New 'Nine Articles'"). As the "gatekeeper" and service provider of the capital market, securities companies are an important force in promoting the high-quality development of the capital market, and play an important role in improving the quality of listed companies, serving the real economy, and maintaining the stability of the financial market.

With the deepening of the comprehensive reform of the capital market, how can the securities industry better implement the decisions and arrangements of the Party and the state, and help the high-quality development of the capital market with its own high-quality development? Zhang Haiwen, chairman of Guoxin Securities, said in an interview with Jian News reporter that the new "National Nine Articles" policy proposes to strictly control the issuance and listing access, and consolidate the first responsibility of the exchange, the issuer and the "gatekeeper" responsibility of intermediaries, which requires the brokerage investment bank to put forward higher requirements.

"Securities companies need to closely follow the main line requirements of 'strong supervision, risk prevention, and high-quality development', so securities companies should continue to improve the core competitiveness of their main business, pay attention to the quality, growth and market risks of enterprises and make positive adjustments, and avoid blindly pursuing short-term interests." Zhang Haiwen said.

Jiemian News: As a programmatic document for the long-term construction of the capital market, the new "National Nine Articles" set the development goals to be achieved by the capital market in the next five years, by 2035, and by the middle of this century. In view of this plan, how should the brokerage as a gatekeeper develop?

Zhang Haiwen: The new "National Nine Articles" have clarified the development direction of the capital market in the next two or three decades, and given a "three-step" timetable, which will help consolidate the confidence of market investors, stabilize market expectations, correct institutional positioning, clarify regulatory orientation, lay a solid foundation for the long-term stable and healthy development of the capital market, and will also have a far-reaching impact on the development and competition pattern of the securities industry.

As the "gatekeeper" of the capital market, the service provider of direct financing and the important participant of the capital market, securities companies need to closely follow the main line requirements of "strengthening supervision, preventing risks, and promoting high-quality development", establish a correct business philosophy, and handle the relationship between functionality and profitability. Leading securities firms enhance their core competitiveness through mergers and acquisitions, organizational innovation, etc., and small and medium-sized securities firms rely on shareholders or geographical advantages to carry out characteristic and differentiated operations; Strictly control the entry point of listing, do a good job of continuous supervision, and continue to improve the quality of practice; Conscientiously practice the financial culture with Chinese characteristics, actively cultivate a good industry culture, and promote the construction of a financial power with the high-quality development of the securities industry itself, so as to serve the overall situation of Chinese-style modernization.

To this end, Guoxin Securities will make every effort to promote business synergy and market development, and continue to enhance the core competitiveness of its main business. The first is to strengthen the characteristic boutique investment bank, closely focus on the national strategy, take state-owned central enterprises and specific industries as differentiated customer groups, and comprehensively use equity and debt financing and mergers and acquisitions and restructuring tools to create a strategic emerging industry investment bank of "investment banking + investment + investment research".

The second is to optimize the asset management business, make efforts at both ends of capital assets, strengthen investment and research capabilities, actively create thematic asset management products such as the quality and efficiency improvement of central enterprises and the index of new value central enterprises, accelerate the iterative upgrading of standardized products, customize innovative services, and steadily achieve both the quantity and quality of assets under management.

The third is to refine the wealth management business, concentrate on expanding the scale of customers and high-net-worth wealth management customers, strengthen product sales, break through the institutional business, develop margin financing and securities lending business, transform into a buy-side investment advisor, and make every effort to promote the securities settlement business and enhance the comprehensive income generation ability.

Fourth, to stabilize the proprietary investment business, with the goal of pursuing low volatility and absolute returns, strengthen the concept of large-scale asset allocation, adopt a multi-variety and multi-strategy investment model, accelerate the construction of equity and derivatives investment capabilities, vigorously expand non-directional business, and create a steady income growth point for proprietary business through the two-wheel drive of "independent investment + customer demand business". And improve the complete business chain of "investment research + investment + sponsorship + co-investment".

Jiemian News: After the unveiling of the new "National Nine Articles" and the "Delisting Opinions", the entry and exit of A-shares are facing unprecedented strong regulatory pressure, and the market's concerns about the delisting of small and micro cap stocks have intensified. What should intermediaries do in response to this situation?

Zhang Haiwen: For investment banking intermediaries, in the future, they will respond to the new "National Nine Articles" and the "Delisting Opinions" from the following aspects:

First, adhere to goal-oriented and problem-oriented, financial intermediaries should resolutely implement the new "National Nine Articles" policy and the requirements of the package of policies, adhere to and strengthen the party's overall leadership over the capital market, focus on the center of Chinese-style modernization, anchor the goal of building a financial power, and promote the high-quality development of the capital market.

The second is to pay attention to market risks in a timely manner, and intermediaries should strengthen the prediction and management of market risks, especially in the context of the current strong regulatory policies, track the development of customers in a timely manner, help enterprises formulate risk response strategies, make up for shortcomings, strengths and weaknesses in a timely manner, and promote the sustainable development of enterprises.

Third, we will continue to improve the business review and other mechanisms, refine the relevant review standards, and work together with the risk control and compliance departments to form a joint force and continuously strengthen risk prevention and control capabilities.

Fourth, uphold the principle of equal emphasis on listing sponsorship and continuous supervision, further strengthen continuous supervision, early detection, early reporting and early disposal of risk signs of listed companies, and effectively perform continuous supervision duties.

Fifth, strengthen investor education, respond to investors' concerns, help investors understand the impact of new policies on the market, guide them to make rational investments in the capital market, more effectively protect the legitimate rights and interests of investors, especially small and medium-sized investors, strengthen communication and cooperation with market players, and jointly promote the healthy development of the capital market.

Jiemian News: In the new "National Nine Articles", it is clear that the first responsibility of the issuer and the "gatekeeper" responsibility of intermediaries will be further consolidated, and a "blacklist" system for intermediaries will be established. What adjustments and efforts do intermediaries need to make in terms of complying with the policy?

Zhang Haiwen: The new "National Nine Articles" policy proposes to strictly control the issuance and listing access, and consolidate the first responsibility of the exchange, the issuer and the "gatekeeper" responsibility of the intermediary institutions, which requires the brokerage investment bank to pay more attention to the quality, growth and market risk of the enterprise when recommending the listing of enterprises, and puts forward higher requirements for investment banks. As a financial intermediary, it will adjust and respond in the following aspects:

First, it is necessary to strengthen compliance management, the current capital market work is based on strengthening supervision, preventing risks, and promoting high-quality development, and it is imperative to strengthen compliance management, fully implement the "zero tolerance" requirements of the China Securities Regulatory Commission, ensure that all business processes meet regulatory requirements, and avoid regulatory penalties for illegal operations;

The second is to improve the quality of service, in the process of issuance and listing, financial intermediaries should pay more attention to the improvement of service quality, especially to help enterprises improve the transparency and accuracy of information disclosure, and improve the overall quality of listed companies by providing professional services;

The third is to strictly screen projects, give priority to enterprises that are in line with the national strategy and have long-term development potential, especially as a state-owned central enterprise brokerage, closely follow the "9 + 6" strategic emerging industries and future industrial development needs, pay attention to the functional positioning of central enterprises, more effectively serve the key areas of the national economy and the construction of a modern industrial system, promote the development of new quality productivity, and avoid blind pursuit of short-term interests.

Jiemian News: After the release of the new "National Nine Articles", the mergers and acquisitions and restructuring transactions carried out by A-share listed companies with more than 10 billion yuan may accelerate. In this regard, what development opportunities will brokerages usher in? What are the new directions of the market?

Zhang Haiwen: Under the background of strong regulatory policies and national strategic catalysis, the vitality of the M&A and restructuring market has been gradually stimulated, and new momentum has been added to scientific and technological innovation and industrial upgrading. Specifically:

First, after the issuance of the new "National Nine Articles", the review of listed companies will be further strictened, the pace of IPOs will be greatly slowed down, and the constraints on the actual controllers of IPO companies will be further strengthened, and the demand for mergers and acquisitions of listed companies is expected to be activated, promoting the resumption and recovery of the mergers and acquisitions market;

Second, the new "National Nine Articles" have further strengthened the indicators of "hard technology" on the Science and Technology Innovation Board, and the 16 new measures have further strengthened the financing support for science and technology enterprises, and the future "9+6" strategic emerging industries and future industries are expected to bring great development potential to the M&A market, especially the science and technology enterprises involved in high-end manufacturing, new generation information technology, new energy vehicles, new materials and other fields are expected to become the new development direction of the M&A and restructuring market;

Third, the professional reform of state-owned enterprises is expected to promote the development of the M&A and reorganization market, and become another direction for the development of the M&A and reorganization market. Promoting market-oriented mergers and acquisitions is expected to enhance the core competitiveness and core functions of state-owned enterprises, so that state-owned enterprises can better play their core role in high-quality economic development in the context of the new era, and make greater contributions to promoting Chinese-style modernization.