SMM11, March 8: the Shanghai Expo, which has attracted a lot of attention, officially opened this week, and the eyes of the world have focused on this great Financial City. What is more exciting than the Shanghai Expo is President Xi's words: a pilot registration system for Science and Technology Innovation Board will be set up on the Shanghai Stock Exchange to support the construction of the Shanghai International Financial Center and the Center for Scientific and technological Innovation, and constantly improve the basic system of the capital market.

Partners who care about the stock market should know that the current system of the Chinese stock market is the approval system or audit system, including strict entry and exit principles in many areas, including food safety inspection. In other words, the threshold for enterprises to enter is very high, once entered, the latter regulation is relatively loose. This is the case with the stock market approval system, which aims to eliminate companies of poor quality and list good companies that meet the requirements. In order to pass the first rule of IPO, enterprises have to meet some hard targets, including cumulative net profit of more than 30 million in the last three years, continuous operation of the company for more than three years, and so on, directly shutting out some early potential companies. Many Internet companies could not make money at first. Meituan continued to lose money eight years after its establishment. Tesla has also been losing money since 2003, so Alibaba, Tencent and other good companies have listed abroad one after another. The entire audit process of the CSRC is extremely complex, and the issuer is time-consuming and laborious. The fastest drug is less than 2 months, the slowest is more than 2 years, and a year is fast. In the end, it is possible that it will not pass, and there will be a huge cost in the middle. Including the listing guidance of securities firms, the recommendation fees of sponsors, and so on, in short, it is not easy to be listed under the audit system.

The registration system is different, it advocates ex post supervision, its most important feature is that the securities issuance audit body only carries on the formal examination to the registration document, but does not carry on the substantive judgment. Under the audit system, the focus of issuers is on how to pass the meeting, and under the registration system, the focus of business owners is on how to manage and operate, which is the shift of the focus of enterprises under a completely different stock market system.

The stock market under the registration system will certainly usher in a wave of listing, but what we have to understand is that the construction of a strict system is the key to the success of the stock market. Under a sound legal system, all listed enterprises must safely perform their respective duties. Run the business well. When the enterprise has performance, it will naturally be recognized by shareholders, the stock price will continue to rise, at the same time, investors know that their rights and interests are protected by law, only rest assured to put their savings into the stock market, this is a positive feedback process.

The initial establishment of the stock market is for the financing of state-owned enterprises, so far the development of the stock market has also experienced nearly 30 years of ups and downs, the pool is getting bigger and bigger, but also accumulated considerable management experience, which laid a certain foundation for the vigorous development in the future. Since the beginning of this year, President Xi has repeatedly mentioned helping the development of private enterprises and calling them his own. In the future, the stock market must also make more efforts to raise funds for private enterprises, only to invigorate private enterprises. To take China's economy to the next level.