On the evening of October 28, the Shanghai Stock Exchange said that at present, the relevant shares repurchasing supporting business rules and announcement format guidelines have been formed into a preliminary draft. The Shanghai Stock Exchange will promptly revise and improve it according to the unified deployment and arrangement of the CSRC, and release it as soon as possible.

In the past two weeks, the government and securities regulators have expressed their strong policies and issued a series of favorable policies, which stabilized the market expectation of A-shares and enhanced market confidence. According to incomplete statistics, from October 19 to October 26, including the two parties, the Shanghai and Shenzhen Stock Exchanges, securities, fund industry associations, Beijing and Shenzhen, etc., more than 10 rescue policies.

At the same time, Shenzhen tens of billions of funds took the lead in saving the city, Beijing, Zhejiang and other places have also followed suit. In addition, on October 22, the China Securities Association organized the securities industry to set up a 100 billion asset management plan to ease the pledge of equity pledge. On the same day, the central bank increased the amount of refinancing and rediscounting of 150 billion yuan to support financial institutions to expand credit supply to small and micro enterprises. On October 26, the Shenzhen Stock Exchange’s first single-billion-dollar special corporate bond was issued. At present, the Shanghai Stock Exchange has also launched the first special bond of 800 million yuan. According to the statistics of the existing data, the funds invested by various departments in various places have reached hundreds of billions of dollars.

According to market analysis, multiple favorable policies will help to increase market investment enthusiasm and hope to lead A shares to strengthen again.

Policy "combination boxing" to ease the difficulty of equity pledge

When Liu He, the vice premier of the State Council, was interviewed on October 19, he responded to social concerns about current economic and financial hotspot issues. Liu He said that now is a crucial moment for actions to outperform a dozen children's programs. All aspects must be implemented with greater intensity, a stronger sense of responsibility, courage to act, and quick action to effectively introduce some specific policies to promote the healthy development of the stock market.

After the senior leadership expressed its position, relevant policies were rapidly advanced.

The Financial Stability Development Committee of the State Council held the 10th special meeting on preventing and defusing financial risks on October 20. The meeting stressed that the five policies announced on October 19 to stabilize the market, improve the basic market system, encourage long-term funds to enter the market, promote the reform of state-owned enterprises and the development of private enterprises, and expand opening up should be implemented quickly and firmly.

On October 20, the official website of the China Securities Regulatory Commission issued a document stating that the interval between the IPCC and the company's planned reorganization and listing will be shortened from three years to six months. The CSRC will continue to deepen the market-oriented reform of mergers and acquisitions and serve the high-quality development of the national economy.

Since then, the Shanghai and Shenzhen Stock Exchanges have successively stated their position on the evening of October 21, and conscientiously organized and implemented the work requirements of Vice Premier Liu He on the stock market, saying that it will consolidate the market from the risk of pledge of equity pledge, support mergers and acquisitions, and support the repurchase of listed companies. development of.

On the 22nd, the central bank announced that it would increase the amount of refinancing and rediscounting of 150 billion yuan to play its role of directional regulation and precise drip irrigation, and support financial institutions to expand credit supply to small and micro enterprises.

On the 25th, the China Insurance Regulatory Commission issued the "Notice on the Relevant Matters Concerning the Establishment of Special Products by Insurance Asset Management Companies", confirming that insurance asset management companies are allowed to set up special products to participate in the resolution of the liquidity risk of listed companies' stock pledges.

Hundreds of billions of funds come into the market

As early as October 13, there were media reports that the Shenzhen Municipal Government issued a number of measures to promote the healthy and stable development of listed companies, and has arranged tens of billions of special funds to rush to listed companies. Mainly from the two aspects of debt and equity, reduce the risk of stock pledge of Shenzhen A-share listed companies and improve the liquidity of listed companies.

On October 16, the Beijing Securities Regulatory Bureau disclosed that it would guide banks and other financial institutions to provide more substantial financial support in the difficult period of private listed companies; the district-owned state capital and Dongxing Securities initiated the establishment of a fund to support the development of high-quality technology enterprises with a fund size of 10 billion yuan. Yuan, the first phase of 2 billion yuan has been completed, through the transfer of not more than 10% of the total share capital of the listed company, to help private technology listed companies to resolve the risk of stock pledge.

As the risk party with the largest equity pledge, the securities companies also actively rely on the association to carry out "self-rescue" to resolve risks.

On October 22, the Securities Industry Association disclosed that 11 securities companies were organized to reach an intention to invest 21 billion yuan to establish a parent asset management plan to attract investment from banks, insurance, state-owned enterprises and government platforms, and to form a total asset of 100 billion yuan. The plan is to help prospective listed companies to ease the difficulty of equity pledge.

In terms of solving the source of equity pledge risk funds, the two special items of the Shanghai and Shenzhen Stock Exchanges have been successfully issued.

On October 24, the Shenzhen Stock Exchange disclosed that Shenzhen Investment Holdings Co., Ltd. (referred to as Shenzhen Investment Control) issued a special bond of 2018 on October 26 to issue 1 billion yuan. This is the first corporate bond of the Shenzhen Stock Exchange.

On the same day, the Beijing News reporter learned from the Shanghai Stock Exchange that the first special debt of Beijing was successfully issued on the Shanghai Stock Exchange on the morning of the 26th. The issuance scale was 800 million yuan. The funds raised were mainly used to support the development of high-quality private technology listed companies and to ease the listing. The company's equity pledge risk.

It is worth noting that in the review of the special “debt debt”, the CSRC will establish a green channel on the Shanghai and Shenzhen Stock Exchanges, that is, report immediately. Some analysts believe that this means that more funds will be added to the rescue market at any time.

According to incomplete statistics, plus the increase in refinancing and rediscounting of 150 billion yuan, the amount of funds mobilized by the rescue market is currently at the level of hundreds of billions.

focus

Regulators actively support mergers and acquisitions

Recently, favorable policies on mergers and acquisitions have been introduced frequently.

On October 8, the CSRC launched a “small-fashion” M&A restructuring mechanism to launch a “small-volume” M&A restructuring mechanism for small transactions that do not constitute a major asset reorganization, directly reviewed by the listed company’s mergers and acquisitions review committee. Simplify administrative licensing and reduce audit time. On the 12th, the China Securities Regulatory Commission issued the "Related Issues and Answers on the Issuance of Assets by Listed Companies to Purchase Assets and Raise Supporting Funds at the Same Time" to "relax" the corporate financing purposes. On the 19th, the China Securities Regulatory Commission (CSRC) further added a merger and reorganization audit to review the exemption/fast track industry type, opening up a fast track for high-tech industries.

On October 20, the China Securities Regulatory Commission (CSRC) said that the interval between IPOs and whether companies are planning to restructure and list them will be shortened from three years to six months. On October 22, Chairman of the China Securities Regulatory Commission, Liu Shiyu, said in a speech at the 20th Anniversary of China Fund Industry that the CSRC encouraged private equity funds to participate in corporate mergers and acquisitions, debt-to-equity swaps and equity financing.

In this regard, Sun Jinxi, director of the New Era Securities Research Institute, believes that after the policy changes, backdoors and large-scale mergers and acquisitions are expected to rise, helping M&A and restructuring to recover quickly. According to the statistics of the statistics, there will be a large number of IPO companies under the New Deal to enrich the M&A market.

"The above adjustment is in line with the recent encouragement and support of listed companies to encourage and support listed companies to make them bigger and stronger." At present, the regulatory authorities launched a "small and fast" review mechanism for mergers and acquisitions, which means backdoor listing and mergers and acquisitions. The reorganization will speed up.” Founder Securities said that reorganization is an eternal topic in the securities market. Active investment in reorganization theme is not only conducive to defusing the risk of stock pledge of listed companies, but also helps the market to invest enthusiasm, and is expected to lead A shares to regain strength.

The "Company Law" was passed, and the "protective plate repo" was supported.

Almost at the same time, part of the market system that stabilizes market confidence and favors the stock price of listed companies can be “quickly improved”.

On October 26, the Sixth Session of the Standing Committee of the 13th National People's Congress deliberated and adopted the "Decision of the Standing Committee of the National People's Congress on Amending the Company Law of the People's Republic of China" (hereinafter referred to as the "Revision Decision") Article 142 The provisions on the repurchase of shares of the company have been specially revised and will be implemented as of the date of promulgation. On the evening of October 26, the China Securities Regulatory Commission stated that the CSRC will conscientiously implement the "Revision Decision" and standardize and support the share repurchase behavior of listed companies.

The revision mainly focuses on three aspects. One is to supplement the situation of allowing share repurchase; the other is to appropriately simplify the decision-making procedure for share repurchase, increase the maximum amount of shares held by the company, and extend the company's shareholding. The deadline is three; it is to supplement the standard requirements for share repurchase of listed companies.

On October 28, the Shanghai Stock Exchange stated that it should formulate supporting business rules as soon as possible to support listed companies to implement share repurchase in accordance with laws and regulations.

“Improving the value of each share by implementing the repurchase program and promoting the entry of incremental funds into the market will help to provide strong support for the stability of the stock price, release positive signals to the market, reduce market panic and maintain stable and healthy development of the market.” BOC International Securities Research reported that .

Yang Delong, chief economist of Qianhai Open Source Fund, said that repurchasing stocks can reduce the number of shares circulating in the market and increase the earnings per share of listed companies, which is an important positive for the stock price in the secondary market. In addition, listed companies are willing to take the initiative to take out the real money and buy back shares from the stock market, which is a great boost to market confidence.

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