SFC: red chips return no timetable for new shares purchase will benefit the retail

Reporter recently learned from relevant departments, issuing securities regulatory system as our direct financing system, one of the most important measures in the last five years after the reform and improvement, has initially established a set of consistent with approval system requirements, meet the market development needs of the system. The next step, the regulatory authorities will continue to improve the securities issuance system, from all aspects of the issue of audit channel.

Sponsor system will further strengthen the

The current release approval system consists of three basic system components: the sponsor system, a leading system and inquiry system. The current release of the regulatory regime of the overall layout is to register from the approval system to prepare for the transition. In this process, regulatory authorities must promote the registration of the necessary intermediary institutions, professionals and markets various types of investors. Only meet these conditions, but also to a smooth launch registration system.

As the largest system of one of the important content, industry experts said that the regulatory authorities will further strengthen the internal control of the sponsor, the sponsor system in summary was implemented on the basis of experience, as soon as possible to amend the Securities issue listing sponsorship system procedures, and the development of the internal control of the sponsor Business Guide, the sponsor of the business work sheet Guide and other related files, to implement the sponsor and the sponsor representative responsibility to hand, strengthen the market constraints.

Continue to advance the reform IPO

In view of China a-share market the characteristics of the emerging and transition, the Commission will also continue on the IPO of necessary regulatory reform implementation. Includes: one is to sponsor research report production, pushing prices as well as road show information disclosure and supervisory requirements, special interest recommendation issued by the investment value of reporting for the new unit pricing of its concluding observations. The second is the object of the inquiry on the qualifications and strengthening the regulatory acts quotes and quotations on request objects, subscribing to ongoing supervision. At the same time, pricing exceptions for Windows Guide to prevent excessive pricing fundamentals from listed companies.

While past experience has shown that, since the implementation of our inquiry system, IPO pricing more reasonable, non-rational bubble does not appear. According to statistics, at the beginning of 2005, the pilot of the inquiry to May 2006 in front of the old Division of fault, the IPO price-earnings ratio (diluted) averaged 20.4 times; in May 2006 the new and old are broken, the IPO price-earnings ratio (diluted) averaged 27.3 times (excluding China life, not to price-earnings ratio indicators measure the special industries listed company), a division of the new and old broken before 33.8 per cent; this year, new shares price-earnings ratio (diluted) average 29.2 times, newer old scratch off 43.1% before. From the secondary market, the Shanghai composite index since 2005 stock reform has gone up 356%. The industry believes that continued rising market environment, new share pricing generally also maintains stable upward trend in the overall price level of the new shares is reasonable.

Red chips return no timetable

As investors are concerned with red chips and for offshore companies listed on A stock, the reporter was informed that it will seriously, actively research, secure and steadily, but there is no timetable.

It is learned that, from the new and old are broken, the market turn change, a large number of international companies through a variety of ways to make A stock listing, these companies from the United States, China, Hong Kong, Europe, Russia, etc. However, the international company listing is not a simple process, especially some big companies have more long-term planning and preparation, in addition, foreign companies listed on A stock market also need to make the system fully prepared.

For red chips A stock listing, industry experts said that the red chips of regression is a very natural thing, red-chip company's customers, market resources generally are domestic, and h-shares returned is actually not much difference, therefore there is no need to give them too much attention. At present, due to the relevant rules of the red chips return, it has not been introduced yet company turned A stock issue.

New stock purchase is expected to benefit from the retail

In order to address new shares purchase link checking and small investors with lower probability, it is understood that the Commission is also working actively on the purchase of new shares to investors in the securities market of specific types of programmes and, of course, this still depends on the securities account cleanup progress. To clean up after work, regulatory authorities can take into account the lessons from the experience of some mature markets, in the current release of basic framework appropriate to different investors to a certain proportion of arrangements in check, reasonable configuration and check of small and medium-sized investors. There are people in the industry also pointed out that this is not a basic strategy, you should let the new stock purchase more market-oriented, let the market mechanism.