Six suggestions for new shares issue

Hevida new stock subscription system should be reformed to restrict the distribution of online placing pricing price to be regulated in principle in the beginning of the implementation of the full circulation since last September, the securities market IPO has been stopped, now should be launched, or lose the stock market financing function. The issue of new shares is the concern of investors at home and abroad, but also the field of reform. The new issue system can not fully follow the old method, we must carry out comprehensive reform, so as to reduce abuses, improve fairness and efficiency.　　Therefore, the reform of the IPO system must be market-oriented, with the interests of the majority of shareholders as the leading, so that the price is reasonable, taking into account efficiency and fairness. The author thinks that the reform of IPO system is not a single reform, but a comprehensive reform.　　Therefore, the author puts forward 6 proposals for the comprehensive reform of the IPO system. (1) The reform of the new share purchase system can be considered in two ways: the first way is to follow the Hong Kong stock Exchange's "household distribution", that is, "1000 units of manpower". This approach is simpler and easier, but there are some technical problems that need to be addressed. The second method is the author of the proposed new issue of the IPO to persuade the market value of placing + funds. It works like this, when new shares are issued, the bulk of the IPO will be set aside (for example, 200 million shares, 160 million shares, about 80%) as market capitalisation, as a large number of funds to the first market to purchase new shares, so it is impractical to allocate each account according to its own market value That there is not so much stock available for placement, we can introduce the mechanism in this link, only in your capital account number is checked, you are eligible to be placed by market capitalisation, but the number of placements also need to set the upper limit, such as large institutions up to 1 million shares, small and medium-sized organizations up to 100,000 shares, the individual up to 20,000 shares is advisable ( Specific how much can be discussed, to avoid repeating the "money is king" overlord rule; the remaining part of the money through the lottery to take care of the empty warehouse and the new investors, here needs to emphasize that the two must be carried out at the same time, if an account is involved in the market capitalization, then he has no right to participate in the money wave,　　Or if it participates in the money-waving, he will be excluded by market capitalisation. (2) It is recommended to restrict the placing of the net and standardize the online placing. The original IPO system on the one hand through the net placing to the institutional investors for the transfer of interest, on the other hand in the two-tier market before the online purchase and pursue the ' Fund for the King ' strategy. This type of IPO is tantamount to providing a total risk-free return in the financial system, so that every time a new issue is issued, trillions of of the money is poured out, causing distortions in the financial system. This unreasonable system has constantly caused the industry and the vast majority of shareholders strong dissatisfaction and severe criticism.　　Therefore, it is proposed to restrict the placing of the net (up to 25% of the issuance of the shares), and to consider the interests of the majority of small and medium investors, and to consider 500 shares. (3) NewThe pricing of stocks in the two market must be based on the P/E ratio and per share earnings forecasts, and the opening and IPO prices should not vary too much.　　If it is in Hong Kong H shares and the mainland A shares listed at the same time, then, should be as much as possible to share the same price, do not start to create a disparity in price differences, artificial formation of unfair competition. (4) After the listing of new shares, in the two-tier market should further make some specific provisions: first, a new issue of new shares in the best set a ceiling, such as not more than 150%; second, in 3 trading days no more than 300%.　　Of course, the specific approach can also be discussed. (5) Gradually solve the existing market of blue-chip circulation is too low. At present, a large number of blue-chip companies listed when the share of the shares only 2%-3%, so that the creation of market capitalisation is not sustainable. Now the biggest risk in the domestic securities market is top-heavy. Therefore, the market share of blue-chip stocks must gradually improve, so that the market to become a genuine stock of valuable stocks. At the same time, this is also conducive to the introduction of stock index futures to maintain a healthy market base (6) must make mandatory regulations, the new issue in principle in the beginning of the full circulation, to eliminate the so-called "split share reform" sequelae.　　As for the central and local state-owned enterprises that are not listed now, they either do not go public and take other financing channels, or they are listed as circulation stocks, and do not leave their tails behind.　　As for the distribution system is to adopt a registration system or placing system, should be in accordance with the market system gradually improve the requirements, so, at present, it is not appropriate to step to adopt a registration system. (the author is professor of University School of Economics and Management)