Opinion

 

1. The comprehensive registration-based system will promote the fittest in A-shares market

 

On February 17, the China Securities Regulatory Commission and the stock exchanges issued the rules for the comprehensive implementation of the registration-based stock issuance system, which was effective from the date of promulgation. This marks that the institutional arrangement of the registration-based system has basically taken shape. The A-share market has bid farewell to the approval system and ushered in the era of registration-based system. This is another milestone in the history of China's capital market. It will provide for the public a more standardized, transparent and predictable capital market, open up development space for more high-quality companies, and inject impetus into the real economy.

 

2. The cultivation of listed companies cannot be achieved in one day

 

Recently, many local governments have proposed the target number of newly added listed companies in 2023, and defined the subsidy standard. The growth of enterprises follows its own laws, especially for scientific and technological enterprises, which cannot be achieved quickly by spending money relentlessly. To cultivate listed companies, we should give full play to the decisive role of the market in the allocation of resources. Local governments should introduce more supportive policies in the areas such as industrial orientation, layout and integration to meet the needs of various production factors in the process of innovation and entrepreneurship, and make more efforts to create a sound business environment.

 

3. Supporting overseas listing in compliance with laws and regulations

 

The China Securities Regulatory Commission has issued new regulations for the filing-based management of Chinese companies' overseas securities offering and listing. The new rules, effective on March 31, focus on improving  transparency, standards and convenience, better play the role of the rule of law in stabilizing expectations and benefiting growth in the long term, in an effort to further optimize the regulatory environment, stimulate market vitality and enhance development confidence.

 

Policy

 

1.The People's Bank of China recently announced the development of Swap Connect, a new mutual market access program between China's mainland and the Hong Kong Special Administrative Region in the interbank interest rate swap markets. There are 23 articles in the program, which mainly include the definition of Swap Connect and the scope of investment, access requirements for domestic and foreign investors, etc.

 

2.On February 18, the China Banking and Insurance Regulatory Commission and the People's Bank of China publicly solicited opinions on the Capital Management Measures for Commercial Banks (Draft for Comments). According to the business scale and risk difference among banks, the Draft for Comments proposes to divide banks into three grades to match different capital supervision schemes.

 

Data

 

1. Data from the Ministry of Commerce showed that the actual use of foreign capital expanded 14.5% year on year to RMB 127.69 billion in January 2023, and in U.S. dollar terms, it went up 10% year on year to USD 19.02 billion.

 

2. According to Shanghai Municipal Development and Reform Commission, there are 191 major projects planned in Shanghai in 2023, with a total investment of RMB 1.7 trillion. The annual investment is planned to exceed RMB 215 billion, up 7.5% over 2022. 

 

3. Data from Beijing Municipal Bureau of Statistics showed that the gross regional product of Beijing-Tianjin-Hebei region reached RMB 10 trillion in 2022, 1.8 times over 2013, before the coordinated development of the region. 

 

4. According to China Household Electrical Appliances Association, the  income of China's household electrical appliance industry reached RMB 1.75 billion in 2022, increasing 1.1% year on year, with a total profit of RMB 141.8 billion, up 19.9% year on year.

 

5. According to the Ministry of Commerce, by the end of 2022, 165 cross-border e-commerce comprehensive pilot zones have been set up in seven batches in 31 provinces, autonomous regions, and municipalities. 

 

6. According to the Ministry of Transport, in 2022 more than RMB 473.3 billion of fixed asset investment has been made in China's rural roads, up 15.6% year on year.

 

7. Data from State-owned Assets Supervision and Administration Commission showed that the  income of centrally administrated state-owned enterprises reached RMB 39.6 trillion, with a year-on-year increase of 9.1%.

 

8. The Futures Market Development Overview 2022 released by the China Futures Association showed that the trading volume of China's futures market reached 6.768 billion with the turnover of RMB 534.9 trillion in 2022.

 

9. There were 36 debt investment plans, equity investment plans, and insurance private equity funds registered in China Insurance Asset Management Association in January this year, with a registered scale of RMB 55.726 billion. 

 

10. According to the Ministry of Industry and Information Technology, China's 1000M fiber optic networks are capable of covering more than 500 million households, with the number of 5G base stations reaching 2.312 million. By the end of 2022, there are more than 90 million users of 1000M fiber optic network, and 561 million users of 5G network.

  

(Information Source: Economic Daily)