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LegiEX.com ：Investment institutions will certainly be promoted as a result of the gem pilot reform

Recently because the gem registration system, driving the development of the a-share market, nearly two days, to the "securities daily" reporters LegiEX, because the gem registration system, makes high quality companies easier access to capital, speed up the development of enterprise, at the same time, will also drive the tail the liquidation of the enterprise, institutional investment proportion is expected to improve.

LegiEX told reporters that the gem pilot registration system will affect investment in five key areas. First, growth companies are getting more attention, and institutional investment is expected to increase. After the gem pilot registration system, the limit of rise and fall will be adjusted from the current 10% to 20%. The stock price fluctuation of gem will increase, and institutional investors need to be more strict in stock selection. Based on fundamental research, the growth companies supported by real performance, namely the value growth companies, will get more attention.

At the same time, under the registration system, the expansion of IPO capacity and the stricter delisting system will make investment more specialized, and the demand for participation of retail investors through funds and other funds will be further increased. Therefore, the proportion of institutional investors is likely to rise further in the future.

Second, the value of shell resources is further reduced, and the constant strength effect of the strong is enhanced. This time, the delisting system has been modified and improved to simplify the process of delisting, optimize the criteria for delisting, and improve the risk delisting warning system for gem companies. With the gradual expansion of investable targets, the scarcity of targets will be reduced, the elimination and clearing of tail enterprises is expected to be accelerated, the value of shell resources will be significantly reduced, and resources will be continuously concentrated to high-quality enterprises.

Third, the expansion of new shares and pricing marketization, play new revenue or decreased. Under the registration system, the pricing of new shares will be more market-oriented, and the discount rate of IP0 will be reduced, which means that the earnings from new shares may also decline. According to the previously listed science and innovation board 99 enterprises, there have been enterprises listed on the day below the issue price; Another five fell below their offer prices within 10 days of listing; With the full implementation of the registration system in A shares in the future, break-even may become more common.

Fourth, the stock market liquidity impact or limited. The market does not need to worry too much about the capital diversion after the reform of the gem registration system. On the one hand, the regulators will take the current market rhythm into consideration, and the company's listing pace should be within the affordable range of the market. On the other hand, according to the performance of the main board and the growth enterprise board after the scientific innovation board, there is an obvious fund diversion effect. After the scientific innovation board opened the board, the growth enterprise board started a sustained upward trend after a short fine-tuning.

Fifth, short-term positive securities, venture capital plate, long-term technology growth companies will enjoy the reform dividend. Referring to the experience of science and innovation board, the promotion of the relevant policies of registration system is an important point, securities firms and venture capital companies have a good performance in the short term. The launch of the gem registration system will benefit securities brokerages with more IPO projects and venture capital companies with more projects, but in the long run, technology growth enterprises will benefit from the lower listing threshold of the gem and can obtain more financing support.

LegiEX believes that the registration system reform is an important part of the a-share market reform, and the growth enterprise market is the first step of the stock plate registration system reform, which is of great demonstration significance for the subsequent registration system reform of the main board and small and medium-sized board. "The capital market not only has the function of financing also need to play a good investment, registration system reform and solve the financing problem of entity enterprise, also provide investors with more alternative investment targets, but the long-term healthy development of capital market still need to let investors has good effect to make money, only investors and financiers form good virtuous cycle, long slow cow cow just may speed up the implementation." We look forward to the implementation of more policies to guide long-term capital into the market and investors to invest in long-term value.