The reform of distribution is a solid step towards marketization

"Adhere to the market direction, promote the new stock pricing further marketization, pay attention to the cultivation of market restraint mechanism, promote issuers, investors, underwriters and other market subjects to be responsible."　　The SFC's guidance on further reform and improvement of the IPO system (draft) gives people a glimpse of the prospect of market-oriented reform in the distribution system. Pricing mechanism is the core of the IPO system, and it is the consistent thought of the supervision department to promote the pricing marketization. China's securities market started late, market environment and foreign mature market differences, under the economic, social and legal environment of the limitations of the early new stock pricing mechanism has a strong administrative color.　　Approved by the SFC from the earliest price, to start to try the inquiry mechanism, and then to the full implementation of the inquiry system, from the price of the issue of strict control, to the issuance of P/E control gradually liberalized, and then to the Desalination window guidance, the price of new shares to market-oriented pricing Method step by step, capital allocation efficiency significantly improved. Like the pricing link, the whole IPO system has undergone a process of evolution from executive-led to market-oriented. In the recent 20 years of the development of the securities market, the IPO system has undergone a significant change from the quota system to the approval system, which is now changing to the registration system, which fully embodies the principle of market-oriented reform in the capital market. The administrative intervention of the Supervision Department on the application of IPO, the formulation of issuing price, the limit of issue quantity and so on is decreasing, and it is basically handed over to the city tasting institution and issuer to decide independently. Especially since last year, the SFC has emphasized the market-oriented direction in improving the basic system of capital market. For example, October 19 last year, issued the "Securities issue listing sponsorship business management measures", from the strengthening of the internal control of the sponsor, strengthen the management of the sponsor, strengthen the supervision measures and so on, further refine the implementation of the sponsorship business and supervision measures, stressing that the sponsor should strengthen the management of the sponsorship process In order to advance the approval system to the registration system has laid a foundation for the process of promoting market-oriented reform, we must see that China's capital market is still a developing market, is in the "Emerging + transition" stage of development, this feature determines the IPO reform is not possible overnight, it will be a continuous adjustment, optimization process.　　It is in order to ensure the smooth advance of market-oriented reform, to minimize the uncertainties in the reform, and to further cultivate the market mechanism, the reform of the new issue system has taken step-by-step implementation, gradually improve the way, phased out the reform measures. In the first stage of the introduction of the four concrete measures, the dilution of window guidance, the formation of further market-based price formation mechanism has become a focus of attention.　　Reasonable pricing is the basis of a series of systems and related arrangements for underwriting and selling, and the system design such as checking rate and placing proportion under the net network are all needed under the premise of reasonable pricing, which is the "keywords" of the pricing mechanism. In fact, not only the reform of the distribution system, market-oriented has become the basic principles of capital market reform. Years，The SFC has promulgated a series of basic system construction policy measures, are emphasized to be more market-oriented.　　Especially since last year, the SFC has emphasized the market-oriented direction in improving the basic system of capital market. And the IPO system is the most front-end link of the whole stock market, which is listed and traded after the issue. Therefore, the importance of market-oriented reform of the IPO system is self-evident, and the price-forming front-end based on this system will be the logical starting point of carding and straightening the whole market operation mechanism.