The Development of China's Stock Market under the Background of the Registration-Based System

Abstract

Reviewing China's stock issuance system, from the approval system to the verification system, then to the pilot registration system, and finally to the full implementation of the registration system, China's stock market has also matured from its initial stages. The reform of the registration system will have multiple positive impacts on China's stock market, the most obvious manifestation being that each registration system reform will drive a wave of market index increases in the related markets. The registration system further relaxes the conditions for new stock issuance, accelerates the speed of corporate listing and financing, helps to increase the proportion of direct financing, and brings the Chinese market closer to mature markets. This article analyzes the impact of the registration system on listings, from the pilot programs in the Sci-Tech Innovation Board (STAR Market) and the Growth Enterprise Market (GEM) to the full implementation in the main board, the number of listed companies has increased, the total market value has grown, the stock market scale has expanded, and market volatility has increased. Then, it expands from three small aspects, the market style will shift to rationality and value orientation, while accelerating the transformation of the domestic stock market from a speculative market to an investment market.