Recalling the beginning of this editor's entry into the securities industry, it coincided with the spring of the reform of state-owned enterprises and the opening up of the capital market. But the good times were short-lived, the financial crisis broke out, the Internet bubble burst, and the market entered a bear market adjustment. Subsequently, with the continuous changes in capital policy and international situation, the market has been up and down. Since the outbreak of the epidemic in 2020, the economy has been difficult to recover and has entered a long winter. In order to promote the recovery of the market, the state has launched a series of measures to deepen the capital market, but the adjustment of the new nine articles and listing rules has triggered a fierce reaction from the market. To this end, this edition interviewed all parties involved in the delisting, including investment banking experts and listed companies, and everyone expressed their opinions. Recently, Xiaobian interviewed two professional investors and two retail investors, who are also investors, and their concerns and views are also very different.
01
Dare to ask where the road is
Mr. Han, a partner of a well-known equity investment fund in China, resigned from a well-known securities firm more than ten years ago to start a business. Referring to the new rules for delisting, he sighed with helplessness:
The state is trying its best to maintain market stability and find a way out for venture capital enterprises. Measures such as optimizing the support policy of "fundraising, investment, management and withdrawal", implementing differentiated supervision, and carrying out pilot projects for the in-kind distribution of equity venture capital funds have indeed given the venture capital industry some space. The authorities are working hard, and we are working hard, but where is the way forward? Everyone is still very confused.
In order to strictly control the listing gate, the regulatory department has set up a special department to review the application materials again. Many companies have been killed, or voluntarily withdrawn their applications, which is bad news for investors. But the long-term pain is better than the short-term pain, and for companies with financial problems, we would rather accept the result of being killed. We are struggling, but we can only learn lessons, reflect on investment strategies, strengthen risk management awareness, and be cautious and cautious in project selection. It's just that we are confused, in today's implementation of the registration system, such a strict review and control is a bit like returning to the previous approval system.
After a few months of stagnation in the market, it's reassuring to see that IPOs have finally restarted. But the market sighed again! The policy is constantly blowing the spring breeze, and spring is delayed.
The adjustment of the listing rules is intended to improve the market, which is a good thing in the long run, but now that it has an impact on the market, we are eager to see this gust of wind blow quickly. I hope that the country will implement an effective rescue strategy, and I hope that the market will be active, so that our road can be wider and wider.
02
The spring breeze is proud, when will you see all the Chang'an flowers?
Mr. Yang is the chairman of the secondary market private equity fund and a doctor of economics from the Chinese Academy of Social Sciences. He has many years of experience as a senior executive in a brokerage company, and has been in charge of brokerage and proprietary business. When it comes to the new rules for delisting, he is very sure:
The strict delisting system is a fundamental measure to reshape the value investment market, and it is an inevitable stage for the market to mature, which is a fundamental conclusion.
As professional investors, we are worried about the policy changes, and we are worried that we will only make a gust of wind and return to the prototype. At present, the market is unstable, because the implementation process will inevitably touch the interests of some people, especially retail investors. But investors need to be self-conscious and educate themselves. And there is a process of education, and we can't stop doing it because they call too much, and we can't slow down because they make trouble. Investors should change their investment habits, abandon the impetuous mentality of rushing for quick success, fast in and out, and making quick money, and cultivate the habit of value investment. It is hoped that the competent authorities will withstand the pressure, overcome all difficulties, and unswervingly implement the delisting to the end. Otherwise, the market will never have a way out.
At present, the market needs the state to let go, and the state needs to take action. We must respect the rules of the market, have the spirit of contract, and have the correct concept of capital management. The maturity of the capital market requires painful changes. We are not afraid of chaos, nor are we afraid of short-term troughs, and having a clear understanding is the key. Everyone must adapt to this change, be patient capital, choose good votes with long-term investment value, and allocate resources to high-quality companies, so that there will be a healthy market.
We don't expect the prosperous scene of "the spring breeze is proud, and you can see all the Chang'an flowers in one day". However, a stable and reasonable policy system is the cornerstone of market confidence, and with confidence, the market can slowly pick up, and only then can we dare to look forward to a day full of flowers.
03
If the spring breeze has mercy, can you allow me to be young again
Mr. Wong and Mr. Cheng have been wandering the stock market for many years, and they emphasize that they are professional investors. But broadly speaking, as opposed to institutional investors, individual investors are called retail investors. Here, I wronged two professional shareholders to be retail investors.
ONE SAYS
Mr. Huang, a veteran investor who graduated from law and resigned from the court 20 years ago, was indignant when he talked about the new delisting rules:
Chairman Wu stressed that the punishment is severe, but the current punishment for securities fraud and counterfeiting is far from sufficient. The cost of crime by listed companies is too low and the benefits are too large, which is the main reason why many listed companies take risks and many intermediaries jointly commit fraud. Once the East Window incident happened, they may have planned in advance, their families have been resettled overseas, and their assets have been transferred.
Kangmei Pharmaceutical, the first securities class action lawsuit in mainland China, had bad fraud methods, involving tens of billions of dollars. In the end, the relevant responsible persons were fined hundreds of thousands of yuan, and the main responsible persons were sentenced to 12 years in prison according to the punishment for several crimes; The actual controller and the main executives of Kangmei were jointly and severally liable for the loss of 2.46 billion yuan of the investor, and the compensation was ultimately borne by the listed company Kangmei, and the accounting firm involved in the case, Zhengzhong Zhujiang, was fined tens of millions of yuan because there was no property to enforce, and the enforcement procedure was terminated.
On the other hand, the bankruptcy of the American energy company Enron directly led to the dismantling of the audit institution Anxinda, the CEO of Enron was sentenced to 24 years in prison and fined $45 million, its current and former executives and accountants were convicted, and the flowers and JPMorgan Chase involved in the case paid billions of dollars in compensation to the victims for suspected financial fraud. Enron investors received $7.14 billion in compensation. This incident led to the introduction of the Sarbanes-Oxley Act in the United States, which achieved the purpose of urging listed companies to comply with the law, improving the accuracy and reliability of corporate information disclosure, and protecting the interests of investors. Compared with the sentencing, which is more severe? After-the-fact relief, who is more effective?
Strict punishment and strict law also require fair law enforcement. Let's not selective and sporty enforcement. Kangmei Pharmaceutical was punished by catching typical examples or killing chickens to show monkeys, while other counterfeiting companies were not punished. We can't just punish the private companies that make the fraud, but not the state-owned enterprises that make the fraud. If it is only selective and sporty, the law will be useless.
Sometimes delisting is not necessarily a punishment for listed companies, but rather a safe haven for them. The key is to pursue legal responsibility and implement investor compensation. Managers, directors, major shareholders and intermediaries (accounting firms, lawyers, securities firms, etc.) and even banks or competent authorities of listed companies must be investigated and punished as long as there is responsibility. The main responsible person should punish him for bankrupting his family and property, and punish him for sitting in prison, and only a devastating blow can play a deterrent and warning role in the law. In this way, there will also be a clean market.
At present, the compensation mechanism for delisting needs to be improved. The current legal basis is basically the relevant provisions of the Civil Code, the Securities Law and the Criminal Law, and the investor claim procedure is complicated, the litigation cost is high, and the time is too long. Therefore, it is worth exploring ways to increase penalties, simplify the claim procedure, pay in advance or open fast lanes to facilitate investors' claims. Stabilizing the hearts of investors is the key to stabilizing this period of transition. Investors have confidence in order to have hope for the market.
ANOTHER SAYS
Mr. Zheng, a professional shareholder, used to go to work in the large account of the brokerage firm every day. After the epidemic, the business model and concept have changed, and now I am watching the market at home. Talking about the new rules for delisting, he has mixed feelings:
People with a bit of investment philosophy basically don't touch small tickets or ST stocks. But there are always some bold and gambling investors around us, who listen to rumors or so-called news, buy ST stocks and wait for delisting, or buy some stocks that look cheap and wait for the price to explode, and often lose all their money. ST stocks are basically trapped by retail investors, and sometimes the market does not give them the opportunity to exit, but retail investors always have illusions that the stock price is low, and it will double that day, so they are sacrificed in the end. A friend bought ST Meishang and has registered a claim, but I don't know when I will get the compensation. At present, the legal remedy procedure is complex, the remedy mechanism is inefficient, and the compensation that can be obtained in the end is estimated to be very small.
The competent authorities stressed the need to implement the new delisting rules at all costs. But who will bear the cost at all costs? I have been trading stocks for so many years, except for the two rounds of bull markets in 06 and 14 years to make money, I have basically not made money in the past ten years.
Now the state wants to save the market, and it makes frequent moves. If the new deal is like a spring wind, for shareholders, we are willing to return to the previous era of reform and opening up.
Afterword
There are many opinions on the new delisting rules, but there are many points that should be considered and adopted by the authorities. This part proposes to set up a special investor risk compensation fund for delisting, and intermediaries to also set up risk compensation funds. In addition, at present, the board of directors of fraudulent listed companies is basically hiding from the world, because there is a lack of effective supervision mechanism. It is proposed to strengthen the responsibilities of independent directors, who cannot be appointed by the board of directors. Give full play to the supervisory role of independent directors, and listed companies should not dare to do whatever they want.
A healthy ecological market requires good rules of the game, and perseverance in exploring and moving forward to make up for the scavenging. Recently, the country is in full swing in research and launched a package of bailout policies, the value investment market needs patient capital, let us also be more patient, the cold winter is spring.
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