The frequent voices of supervision have released signals of stable expectations to the market, and the combination of policies such as RRR reduction and securities lending optimization is conducive to the restoration of confidence in the equity market and the ** sector. With the successive introduction of multiple favorable policies, it has opened up space for the valuation of the financial sector to increase.
This journal is specially invited by Liu Lian.
From January 25 to 26, the China Securities Regulatory Commission held the 2024 system work conference to study and deploy the key work in 2024. On January 28, the China Securities Regulatory Commission (CSRC) announced that it would further optimize the securities lending mechanism and fully suspend the lending of restricted shares.
It is expected that the CSRC will improve investor returns by improving institutional rules, improving the quality of listed companies, adhering to strong supervision and risk prevention, etc., including focusing on improving the regulatory rules for securities lending and lending. The system work conference made it clear that it will maintain market fairness, focus on improving regulatory rules such as issuance pricing, quantitative trading, and securities lending, and give priority to protecting the legitimate rights and interests of investors, especially small and medium-sized investors.
At the same time, we will accelerate the construction of a valuation system with Chinese characteristics, promote the inclusion of market value in the assessment and evaluation system of central and state-owned enterprises, consolidate and deepen the normalized delisting mechanism, and promote the improvement of the investability of listed companies.
Improve the basic system of the capital market, vigorously promote the reform of the investment side, promote the pilot of long-term investment reform of insurance funds to accelerate the implementation, and improve the long-term assessment of investment institutions.
Adhere to strong supervision and risk prevention, on the one hand, strengthen the supervision of issuance and listing, and continue to consolidate the "gatekeeper" responsibility of intermediaries such as sponsors; On the other hand, we have comprehensively strengthened supervision in place, solidly promoted the construction of the rule of law in the capital market, and strengthened the crackdown on illegal acts.
According to the announcement, in order to implement the investor-oriented regulatory concept and strengthen the supervision of the lending of restricted shares, the China Securities Regulatory Commission has further optimized the securities lending mechanism after full demonstration and evaluation. Specifically, it includes: first, a complete suspension of the lending of restricted shares; The second is to adjust the market-based declaration of refinancing securities from real-time availability to next-day availability, restricting the efficiency of securities lending and lending. Due to factors such as system adjustments, the first measure will be implemented from January 29, and the second measure will be implemented from March 18.
On the basis of summarizing the experience of optimizing the arrangement of the securities lending mechanism in the early stage, and in accordance with the idea of "steady progress and step-by-step implementation", the optimization of the securities lending mechanism by the CSRC mainly reflects the following regulatory intentions: First, highlight fairness and reasonableness, reduce the efficiency of securities lending and lending, restrict the advantages of institutions in the use of information and tools, give all kinds of investors more time to digest market information, and create a fairer market order. The second is to highlight strict supervision, restrict the lending of all restricted shares in stages, further strengthen the supervision of restricted stock lending, and at the same time, resolutely crack down on illegal behaviors of detouring and cashing out in the name of securities lending.
Change the long-short structure of the market
The lending of restricted shares has been suspended to enhance market fairness. The China Securities Regulatory Commission (CSRC) has used a concise statement to "completely suspend the lending of restricted shares", and after the measures are implemented, shareholders holding restricted shares will no longer be able to violate the rules by lending restricted shares**. There are three main impacts:
First, it is to change the long-short structure of the market, so that restricted stocks become restricted stocks in the real sense, and the short-selling power of the market is reduced. Second, shareholders holding restricted shares will no longer be able to violate the rules by lending restricted shares**, which is conducive to improving market fairness and protecting small and medium-sized investors; Third, the response speed of supervision has been improved, and the previous market criticism of the refinancing of restricted stock lending and lending behavior has been restricted after the implementation of this change, indicating that the regulator actively listens to the voice of investors, which is conducive to creating a good market atmosphere based on investors.
The second measure of the China Securities Regulatory Commission (CSRC) is to adjust the market-based declaration of refinancing securities from real-time availability to next-day availability, restricting the efficiency of securities lending and lending. After the implementation of this measure, the efficiency of securities lending and selling will be reduced, which is conducive to reducing the selling behavior of securities borrowing and lending in the market, thereby reducing the short-selling power in the market. In the current situation of relatively sluggish performance, by reducing the behavior of securities lending and selling, it is conducive to stabilizing market confidence, reducing the risk of further decline, and promoting the stable development of the market.
The China Securities Regulatory Commission (CSRC) clearly proposed to suspend the lending of restricted shares and limit the efficiency of securities lending, reduce the short-selling power by restricting the efficiency of securities lending and lending, and improve the fairness of the market with the gradual reduction of short-selling power in the market, which is also a practical response of the regulator to the previous creation of an investor-oriented capital market.
The supervision of securities lending and borrowing has been strengthened to be implemented quickly, the lending of restricted shares has been completely suspended, and the refinancing securities have been adjusted from real-time availability to next-day availability. Following the cancellation by the China Securities Regulatory Commission (CSRC) in October 2023 of the lending of special asset management plans established by senior executives and core employees of listed companies through participation in strategic placements**, the CSRC has completely suspended the lending of restricted shares, which will be implemented from January 29. The market-based declaration of refinancing securities will be adjusted from real-time availability on the same day to availability on the next day, and restrictions on the efficiency of securities lending and borrowing will be implemented, which will be implemented from March 18.
The re-optimization of the securities lending system highlights the importance that the regulator attaches to the fairness and stability of the capital market, and the current scale of securities lending and borrowing is relatively small, which has limited impact on the short-term performance of securities firms. The optimization of the securities lending mechanism directly responds to investors' concerns about the lending and lending of restricted shares, embodies the principle of investor-centered supervision and maintaining the fairness of the capital market, and will help crack down on improper arbitrage behaviors such as detours and benefit transfers, and is a check and fill in the gaps in the construction of the capital market system.
In addition, in the context of large fluctuations in the capital market, the optimization measures of suspending the lending of restricted shares and restricting the efficiency of securities lending are also part of the countercyclical adjustment of the capital market to a certain extent, which is conducive to maintaining the stable operation of the market. For brokers, the scale of securities lending has shrunk significantly since the increase in the margin ratio and the tightening of share lending in October 2023.
According to wind statistics, as of January 25, 2024, the balance of A-share securities lending was only 70.5 billion yuan, a decrease of 131%；The balance of securities lending and borrowing accounted for only 44%, down 0. from the end of September 20237 percentage points. Securities lending business accounts for a relatively small proportion of the two financial businesses, and the suspension of restricted stock lending and restrictions on the efficiency of securities lending and borrowing have a limited impact on the interest income of the two financial business of securities firms.
* The Financial Work Conference emphasized that the capital market hub function should be better played, and the importance of the capital market to the real economy was once again clarified, and securities companies shouldered the important mission of connecting the capital market and the real economy, and there is still a lot of room for improvement in the importance of the financial system.
Multiple favorable policies have been introduced frequently
Recently, the China Securities Regulatory Commission, the Central Bank, the State-owned Assets Supervision and Administration Commission and other regulatory agencies have made joint efforts, and the regulators have frequently issued signals to release stable expectations to the market. With the successive introduction of multiple favorable policies, it has opened up space for the valuation of the financial sector to increase.
On January 24, 2024, Wang Jianjun, vice chairman of the China Securities Regulatory Commission, expressed his stance on "building an investor-oriented capital market". There are two reasons why this statement exceeded expectations: first, for the first time, the dialectical relationship between investment and financing was determined, and the protection of investors was the premise and foundation of market development, and the interests of investors were confirmed to be the most fundamental interests of the market, and they were also the embodiment of the political and people's nature of regulatory work; The second is to clearly evaluate the quality of listed companies by "return to investors". In addition, he stated that he would continue to continue the policy to care for the market, listen to the voices of small and medium-sized investors, and list the quantitative trading system, the first system, the securities lending system, and the refinancing system that the masses are most concerned about as the objects of future basic system optimization.
On January 24, 2024, the central bank announced a cut in the reserve requirement ratio (RRR) of 05 percentage points, providing long-term liquidity to the market of about 1 trillion yuan. The RRR cut exceeded market expectations. The direct RRR cut of 50bp is the first time since December 2021; The time of the press conference exceeded market expectations, and the press conference began at 3 p.m., giving the market time to trade Hong Kong stocks that have not yet been expected on the same day; The statement exceeded expectations: "Create a good monetary and financial environment for the operation of financial markets, including the capital market." ”
On January 24, 2024, the State-owned Assets Supervision and Administration Commission (SASAC) said that it would further study the inclusion of market value management in the performance appraisal of the heads of enterprises.
The current ** index (Shenwan II) PB valuation is only 115 times, located in the top 5% of the past decade, with a high cost performance ratio and margin of safety, you can pay attention to the sector valuation repair brought by attributes.