What impressed me most about the capital market reform in 2019? How to evaluate current reforms?

In 2019, many reforms and opening-up measures were introduced in the financial and capital markets. Some of which are breakthrough measures, such as the registration system of the science and technology board. In terms of improving the formation mechanism of interest rate prices, LPR has promoted the marketization of interest rates.

In terms of opening up, it announced the early release of restrictions on foreign investment in securities, futures and life insurance, and approved the establishment of several joint venture securities firms with foreign investment holdings of more than 51%, as well as the complete elimination of restrictions on QFII and RQFII investment quotas. In the terms of deleveraging on financial industry, several problematic commercial banks were properly disposed of. These are all remarkable measures.

Currently, under the complex external environment and high pressure, various reforms promoted by the capital market have stimulated economic vitality. The expectations of reform make the market turn for the better. Although some measures still have room for further improvement, as long as we continue to reform and opening up will be able to get through the most difficult times of the economy, and the future is worth looking forward to.

What is the role and impact of deep reform on the capital market? What should be accelerated in the reform?

In the more than 30 years of the development of the Chinese stock market, some deep-seated problems have not been able to be completely solved, arousing investors' criticism on the positioning of the stock market. These problems are in a bottleneck in the development of a multi-level capital market based on equity financing, which should be solved quickly by systemic and comprehensive reforms.

The plan for deepening the capital market reform proposed by the Securities and Futures Commission of the People's Republic of China is comprehensive and thorough, does not evade the problem and directly points to some key issues, such as adherence to the position of science and technology innovation, the implementation of a registration system with information disclosure as the core, and improve the quality of listed companies; the establishment of a class action system and the improvement of civil damage compensation system; strengthen management of intermediary agencies, strengthen market technology supervision, open up the bottlenecks for various institutional investors to enter the market, and actively guide mid-to-long-term funds to enter the market. Solving these problems will undoubtedly lay a solid institutional foundation for the next long-term bull market. In these reforms, I think the key is to promote market construction and enhance investor protection.We can grasp with both hands and advance simultaneously

That is to say, on the one hand, the registration system reform of the GEM can be accelerated, and the registration system can even be expanded to the main board. On the other hand, speed up the establishment of a class action lawsuit and civil compensation system, strengthen the supervision of intermediary agencies and listed companies with scientific and technological means. In this way, we can improve the quality of listed companies, and establish an open, fair and fair market order.In the process, investors will gradually restore confidence, push the market get out of a bear market, and embark on a bull market journey.

How to evaluate the current reform of the registration system? When will it advance to the entire market?

I think the current implementation of the registration system is still in its infancy, and there are still some problems, especially the choice of listed companies. It is still necessary to further clarify which belong to the real science and technology enterprises. At the same time, the fundraising and pricing mechanism also needs to be further improved to avoid overvaluation of IPOs, and these science and technology companies have higher risks and a higher probability of failure, resulting in excessive market price volatility in a few years, which is not conducive to the sector's Long-term healthy development. In my opinion, in the process of improving the registration system, it can be promoted to all A-share sectors as soon as possible, not just the GEM. Registration is a mature stock market system, and it is not just applicable to some listed companies.

What capital market reforms are worth looking forward to in 2020?

In 2020, China's capital market will face more opportunities for reform and opening up. In particular, China and the United States may negotiate to accelerate the pace of market opening. I think China will be in the process of a new and old structure transition in the next five years. Many assets are very attractive and will attract a lot of foreign capital inflows.

In this opening process, the depth and breadth of the entire industry will be greatly enhanced, and many new things and opportunities will emerge. Of course, in the process of financial opening up, risk prevention is still very important. Greater opening up requires China to have a stronger regulatory system. Meanwhile, the field of financial capital is shifting from traditional to financial technology, which provides greater development space for the entire industry.