| The dispute between the registration system and the approval system has ended after the revision of the new Securities Law,and the comprehensive registration system has been recognized by the legislation.But there are still many blind spots around how to implement the registration system.Issuance examination under the registration system shall strengthen information disclosure examination,materialize balance between efficient financing by issuers and protection of investors’ interests.The registration system divides two powers: “Examination Power” and “Registration Power”.In accordance with the Securities Law,the Exchange shall undertake the frontline supervision of issuance of securities and obtain the Examination Power.While the CRSC is second line,out of the specific examination,the exercise of Registration Power.In order to exercise Examination Power,the Exchange has followed the example of the members of the Issuance Examination Committee(IEC).At the same time,by learning from the Hong Kong Stock Exchange(SEHK)of China,Exchange should pay attention to avoid the problems in the operation of the IEC.At present,SSE STAR MARKET,SZSE GEM and BOSE have established the above Listing Committee(LC)as the center of the examination system.The LC is composed of professionals from many different types of institutions,and,by forming an examination group,make a decision on whether the issuer can be publicly issued and listed.The LC examine whether the issuer meets the issuance conditions,listing conditions and information disclosure.The examination process shall be risk-oriented,and only if the issuer has certain pure risks and such risks are likely to cause losses to investors,the issuer may reject the application on the ground that the issuance conditions are not met.In view of the general pure risk as well as the speculative risk,then pays attention whether has carried on the effective transmission through the information disclosure.LC members can be roughly divided into two camps from the CRSC system and market participants.This kind of private administrative mode,which is a mixture of market and government,may make the market participants unable to make valuable decisions independently because of the strong administrative power.At the same time,the LC on behalf of the Exchange to make examination and approval decisions need supporting institutional constraints.The internal review of the Exchange and the registration rights of the CSRC constitute a set of supervisory mechanisms that take into account both internal and external factors.But the two should have their own emphasis,and the CSRC shall be prudent in the registration review and return to its supervision standard in the review.Through the observation of the operation of the LC,we can find that this system still has a room for improvement.The LC itself should put more emphasis on its market attribute,and should be composed of market participants to achieve the reform goal of efficient financing.Due to their different compositions,the LC and the Listing Examination Center(LEC)should play different roles in IPO examination.Giving the veto power to the LEC and strengthening the supervisory power of the LC are more conducive to the efficiency of the reviewing system.The way to improve the CSRC’s exercise of registration power is mainly to weaken the CSRC’s examination and approval efforts at the registration stage,and exercise the CSRC’s veto power only under special circumstances that may have a significant adverse impact on the interests of investors or will cause significant damage to the stability of the securities market.At the same time,the conditional registration power system may be established on a pilot basis to leave room for reconciliation when the CSRC and the Exchange review results conflict. |
