(Source: Communications Information)

The focus of the capital market - Kechuangban, is steadily accelerating its progress. Recently, Liu Shaotong, Deputy General Manager of Shanghai Stock Exchange, made a speech at the 14th China (Shenzhen) International Futures Conference in 2018, referring to the situation related to the registration system. According to him, the Shanghai Stock Exchange is currently under the guidance of the SFC and in accordance with relevant laws and regulations, studying and drafting relevant programs, business rules and supporting systems for the establishment and registration system of the branch, developing corresponding technical systems, actively promoting various work, and striving to be able to actively and steadily implement the landing.

Subsequently, the Shanghai Stock Exchange convened a seminar for members, directors and supervisors to seek market opinions on the establishment of a branch board and pilot registration system. The principal leaders of the 11 participating members discussed one by one on the issues of the listing standard, the issuing and underwriting scheme, the trading system, the continuous supervision, and the pilot implementation scheme of the registration system. It is reported that the Shanghai Stock Exchange has completed the draft scheme of setting up a scientific innovation board and pilot registration system.

Since Chairman Xi Jinping first released to the market on November 5 the signal of "setting up a scientific innovation board and pilot registration system", the preparatory work of the SFC and the Shanghai Stock Exchange has been advancing rapidly. It is undoubtedly the intention of the government to accelerate the start-up of innovative small and medium-sized science and technology enterprises. While the capital market, science and technology enterprises, scientific research institutions and investment institutions are looking forward to, the Chinese version of Nasdaq has become the biggest expectation. However, in order to achieve this vision, how to absorb and draw lessons from the experience of capital market development in developed countries, and how to build a healthy and sustainable development of science and technology innovation board is the key.

Science Creative Board is a Sharp Tool for Sci-tech Innovative Enterprises

In 2018, the global capital market opened a battle for new economic enterprises with scientific and technological innovation. The Hong Kong Stock Exchange has introduced a new policy of Hong Kong Stock Exchange and the US Stock Exchange has Nasdaq. However, China's capital market does not currently have the competitive advantage of technological innovative enterprises.

At the same time, due to the stricter supervision of A-share market, 87 new shares were issued in the first three quarters of 2018, a sharp drop of 75.14% compared with the same period last year, and the fund-raising scale was 115.424 billion yuan, a decrease of 34.36% compared with the same period last year. On the contrary, in 2018, the IPOs of Chinese science and technology innovative enterprises such as Hong Kong Stock Market and American Stock Market showed a "blowout" trend.  According to statistics from economist Guan Qingyou, in the first three quarters of 2018, there were 158 new shares issued in Hong Kong (of which 60 were mainland enterprises, accounting for 38%), an increase of 49% compared with the same period last year, and a total of 24.34 billion Hong Kong dollars (23.14 billion Hong Kong dollars, accounting for 95%) raised by mainland enterprises, an increase of 184% compared with the same period last year. Similarly, in 2018, the IPO of Sino-US shares also ushered in the highest level after Alibaba went to the United States in 2014. In the first three quarters of 2018, the number of new shares increased by 1.33 times compared with the same period last year, and the scale of raising funds was 48.773 billion yuan, an increase of 5.29 times over the same period last year.

Scientific and technological innovation enterprises have strong scientific research ability, rapid market expansion and explosive development, but there may be a small profit scale in the early stage. Before 2000, China's A-share market had been an examination and approval system. At that time, the capital market mainly provided financing services for large state-owned enterprises. Since 2000, IPO has implemented non-market inquiry and approval system successively, and long-term strict profit indicators and other requirements, through the non-market approval system to verify the listing of enterprises, resulting in a series of technology innovation enterprises such as Alibaba, Tencent, Baidu, Jingdong listed overseas in the rapid growth period, and raised funds for development.

Therefore, only by establishing an exclusive market for innovative enterprises and promoting differentiated institutional arrangements, such as registration system reform, can science and technology innovative enterprises achieve the development of listing financing.

From Preparatory Work to Practical Work

Constructing the Scientific Creative Plate of Sustainable Development by Drawing on the Advantages and Supplementing the Disadvantages

In fact, as the expectations of all walks of life, the significance of science and technology innovation lies in nurturing China's great technology companies, such as Nasdaq in the United States for Apple, Microsoft, Google and so on. In the past, China's science and technology innovation new economic enterprises were "forced" to choose overseas capital markets, and no domestic sector matched them, nor did the return of China's proposed shares fully correspond to the undertaking. It will become a new bridge connecting venture enterprises, venture capital and capital market, and provide a better financing ground for science and technology innovation enterprises.

Therefore, how to absorb and draw lessons from the experience of developed countries and build a healthy and sustainable development of science and technology innovation board is the focus of attention of regulators, technology industry and investment circles.

First of all, we can learn from the experience of mature foreign markets. Science Creative Board should take full disclosure of information as the first condition, rather than profit as the requirement.

Secondly, SCB is located in the capital market which helps the development of science and technology innovation enterprises. In the initial market access design, it should draw lessons from the existing experience and lessons, judge and set relevant thresholds for enterprises'science and technology innovation ability. For example, the state high-tech enterprises, the number of patents, equity financing valuation and so on. Differentiated market access system will make the company more precise in choosing technological innovative enterprises, and lay the foundation for the continued financing development of Listed Companies in the company.