From opening market wisdom to a historic leap forward The post-share reform era is profoundly affecting capital innovation

(Shanghai Securities News, March 5, author: Zhao Bijun)History has always unfolded its course with its own unique landmark events. A vigorous equity division reform that originated in Sany Heavy Industry has gradually drifted away, but the profound changes it has brought to China's securities market are deeply affecting the continuous innovation and promotion of market means, such as small and medium-sized boards, gems, international boards, stock index futures, margin trading, warrants, debt settlement, overall listing, industrial integration and private placement, etc., which have come and integrated into our capital life.

There are ample reasons for the securities market to look more for the door of capital innovation in the era of post-equity division from the turn of history.

The reform of equity division is an epoch-making historical event. Its importance is not only that after the reform of equity division, China has a real listed company, a real securities market, and a real market economy system, but more historically, the reform of equity division is the reform of the capital market in the history of the capital market *5656 times promoted by democracy and marketization, *5656 times by voting reform.

It is precisely because of this that the process of share reform is so colorful, the problems involved are so in-depth and extensive, and the various phenomena that have occurred are so intriguing and thought-provoking. All the people involved in it, have the opportunity to fully show their views, vent all kinds of emotions, can use the consideration mechanism to bargain with major shareholders and exercise the right of veto, the reform idea of equity division democracy and marketization, than the equity division reform itself is more valuable and meaningful, I believe that in a few years, people's evaluation of it will far exceed the scope of its economy and securities, and is defined as an epoch-making historical event! Therefore, the reflection on the reform process of equity division has more practical value and significance.

Obviously, the relevant government departments represented by the China Securities Regulatory Commission have very clear reform ideas, and the China Securities Regulatory Commission has repeatedly proved its courage and courage to the market.

It is true that the once exaggerated and amplified panic of full circulation and the talk of lifting the ban on stocks have really worried the market that the phenomenon of selling stocks by major shareholders and even senior executives of some listed companies regardless of the interests of other shareholders certainly exists, but on the whole, the reduction of holdings of "large and small" holdings is only a small part of the huge securities market. In this regard, some market participants believe that there is no need to worry at all, because the controlling stake of a listed company is an important power, and no one will give it up easily, and the securities market has measures to prevent hostile takeovers to ensure that the controlling stake transaction is open and fair. In addition, the circulation of all corporate shares will be carried out in a way that is favorable to the secondary market price, and the reason is not necessarily moral, but more out of profit. Because, the price of the secondary market has fallen, and the losers of *5655 are not small and medium-sized shareholders. In a sense, full circulation is fundamentally good, but the lifting of the ban coincidentally appeared at the node of the cyclical decline, and the pressure of the decline of the market is blindly blamed on the lifting of the ban on the stocks, which is an excessive interpretation of the impact of the ban on the stocks.

When the market went from 6124 points to 2695 points, and the "big and small" holdings became extremely sensitive, we also really saw that some listed companies shouldered morality and stepped forward with a high sense of social responsibility, and promised to extend the period of lifting the ban on the equity of major shareholders or the lower price of the release. In response to the concerns of circulating shareholders about the cashing out of the major shareholders of Sany Heavy Industry in the "share reform * 5656 shares", Liang Wengen, chairman of the company, solemnly promised that he would not give up the controlling stake in Sany Heavy Industry during his lifetime. At the same time, Sany Group also announced that the unlocked shares will be voluntarily locked for two years from June 19, 2008. It is promised that within two years from June 17, 2008, if the stock price is lower than 55.76 yuan per share, it will not reduce its holdings through the secondary market. For a time, the feat of many listed companies undoubtedly injected a boost into the confidence of the fragile market.

It is gratifying that although the market had a short period of decline before the emergence of Ping An's lifting of the ban on stocks, on March 1, 2010, the first day of lifting the ban, the increase reached 3.73%, and the other 16 stocks also rose on the same day. It is striking that investors have successfully transitioned from the refractory period to the mature market. More investors have profited from the market opportunities brought about by the share reform. Some investors held the shares of Sany Heavy Industry at the time of the share reform, and even made a profit dozens of times, and the vast majority of investors enjoyed the returns brought by the share reform to the market under the sun.

Some user scholars and market participants review the development history of China's stock market since the reform and opening up, and believe that a considerable part of the problems stem from the diversification of equity division, and the focus of the contradiction is concentrated in the distribution of interests. Due to the different rights of the same shares, the different interests of the same shares, the lack of market value management, the performance and operating ability of major shareholders, the cost and scale of financing, and most importantly, their wealth growth and the rise of stocks can not be linked, resulting in their inability to become rational operators, lack of reasonable motivation for long-term operation, easy to breed vicious money, excessive price-earnings ratio, vague positioning of the stock market, major shareholders hollowing out the company and other problems.

With the basic completion of the reform of equity division, the market mechanism under the condition of full circulation is becoming more and more perfect, and the reform of the new share issuance system has achieved initial results, the pricing mechanism of the primary market has become more market-oriented, and the valuation has become more reasonable. Under these conditions, a number of technological innovation measures have been introduced one after another, the small and medium-sized board and the gem have come into being, and the international board is about to emerge. The issuance price and listing price of the small and medium-sized board and the gem are generally high, and some stocks even rush to more than 100 yuan, what does it mean? It shows that investors have enough confidence in the market, which is obviously a true reflection of the healthy development of the market in the post-equity division era; The introduction of large overseas enterprises to be listed and traded in China through the international board can effectively expand the scale of the blue-chip market and reduce the risk of overestimation of the price-earnings ratio; The launch of stock index futures and margin trading will undoubtedly activate the activity of the market. The innovation of the new model of private placement has evolved from refinancing to the fact that major shareholders are willing to inject the best assets into the listed company according to the market-oriented operation means. The share reform has made innovation in the securities market ubiquitous.

As the cornerstone of China's securities market, listed companies have made great strides in the post-shareholding era. A number of struggling listed companies, through the reform of equity division, with the expected equity amplification value, regained financial support, and then obtained a new life, completed the fission from the "black chicken to phoenix", and some excellent listed companies have also obtained an amazing leap in industrial upgrading. "Dare to be the first in the world" to eat the share reform * 5656 crabs of Sany Heavy Industry, but also grasped this once-in-a-lifetime historic opportunity, with its share reform of the spirit of exploration and rethinking, the market wisdom played appropriately, by a market value of only less than 5 billion yuan of general listed companies, showing explosive growth, in one fell swoop Nirvana for the world's construction machinery industry forefront of the international large enterprises, from the beginning to the leap, has become the interpretation of the equity division reform this has the epitome of epic historical events.

Through the investigation, the author also found that after the reform of equity division, the interests of the two types of shareholders were integrated, and the development concept of Sany Heavy Industry has undergone earth-shaking changes. In the past, in the case of the loss of financing function, a large number of quality stock assets hovered outside the listed company, and through capital innovation, a series of major shareholders of the stock assets were injected into Sany Heavy Industry, which made Sany Heavy Industry's asset scale expand and the industrial height has been rapidly improved. Like excavator assets, the major shareholder of Sany Heavy Industry is ready to go public abroad, after the reform of equity division, the major shareholder injected it into Sany Heavy Industry, and the production capacity expanded from 400 units per month to 1,000 units per month, which has become a new profit growth point. The acquisition of 100% equity of Beijing Sany Heavy Machinery Co., Ltd. by Sany Heavy Industry has increased the profits of Sany Heavy Industry. Because, the major shareholder can extend the future from Sany Heavy Industry.

Due to the liquidity of assets after the reform of equity division, Sany Heavy Industry has the courage to invest generously. At present, Sany Heavy Industry, which is not only leading China's construction machinery, has established overseas factories in Germany, India, the United States and Brazil in accordance with its internationalization strategy to establish an international strategic fulcrum. Sany Heavy Industry's goal is to enter the world's top three construction machinery, and overseas business accounts for more than 30%, which is what a spirit!

When history tells the future, it always objectively measures the span brought by history. On June 1, 2005, that is, the next trading day before the suspension of the share reform vote, the total market value of Sany Heavy Industry was only 4.7 billion yuan, and when we waved away the history and experienced a gorgeous turn, we were suddenly surprised to find that Sany Heavy Industry has become an international large enterprise with a market value of more than 53 billion yuan. Obviously, the share reform has made Sany Heavy Industry and Chinese listed companies like Sany Heavy Industry!

The share reform itself has passed, but the impact of the post-share reform era on China's economy is becoming more and more obvious. As the main body of China's economy, under the sudden attack of the financial crisis, the market as a whole has shown unprecedented energy, which has made important contributions to China's economy in the context of the world financial crisis. The role of a healthy securities market in stimulating China's economy has never been as prominent as it is today, and a real era of "barometer of China's economy" may have quietly arrived.

When we have experienced a historic leap, the reform of equity division has undoubtedly left a strong mark in the history of the development of the securities market in China and the world.