China Securities Regulatory Commission: Be alert to possible changes in the A-share market after opening

China Securities Regulatory Commission: Be alert to possible changes in the A-share market after opening
For stocks, please read Jin Qilin analyst research report, authoritative, professional, timely, and comprehensive, to help you tap potential potential opportunities!  China Securities Regulatory Commission: We will remain highly vigilant about possible changes in the A-share market after the opening of the 南京桑拿论坛 market. Source: Hou Jiening, A-share market of the Securities Daily Securities, the most expensive line, will open on February 3.Regarding related issues that investors are concerned about, the head of the relevant department of the China Securities Regulatory Commission said in an interview on the 2nd that at present, more than 95% of securities transactions through Internet channels have retained the service method of placing orders by telephone.Avoid investors gathering.More importantly, the trading rules of the stock market should not be changed at will, otherwise it will affect market expectations.The stock market is a barometer of the economy and society, and it also has self-repairing and regulating functions.  Reporter: According to the Shanghai and Shenzhen Stock Exchange announcements, the A-share market is about to open on February 3.Recently, the number of confirmed cases of pneumonitis associated with new coronavirus infection is still increasing. Is it necessary to delay the opening of the market again?What considerations does the SFC have for this?  A: Thanks to the market parties for their attention to the stock market opening and suggestions.The various schemes proposed by the CSRC have been responsiblely demonstrated, and have fully listened to the opinions of various parties. After a comprehensive evaluation, it was decided to open the market on February 3.This arrangement is consistent with the “Notice of the General Office of the State Council on Extending the Spring Festival Holiday of 2020”, and also the “Notice of Doing a Good Job in Financial Services after the Spring Festival Holiday” of the People’s Bank of China, the Banking Insurance Regulatory Commission, the Securities Regulatory Commission, and the Foreign Exchange Bureau.  Under the strong leadership of the Party Central Committee and the State Council, the fight against epidemic prevention and control is being carried out effectively.Regarding the opening time of the stock market, it is not a matter of whether the opening of the stock market on February 3 or the delay will continue, both of which have advantages and disadvantages, and only the two of them can be taken lightly.If the market continues to be gradually opened, it may help to digest panic emotions, help various exchanges, securities institutions and investors to make better preparations, and also support extended vacations in some regions.At the same time, we must see that the opening of the stock market is an important vane for the normal operation of the economic system, and continued opening of the market will bring new problems.For example, the longer the A-share market is closed, the accumulated pressure will be reduced, and the more uncertain factors will be.As another example, due to the inter-bank market, foreign exchange market, and bond market opening on February 3, if the stock market is unilaterally closed, it may cause investors with cross-market trading difficulties in liquidity, and the normal operation of the financial system will have obstacles.For another example, the stock market in developing countries is becoming more and more international. The continuous suspension of A-share market will affect the continuity and smoothness of cross-border investor transactions.At present, more than 95% of securities transactions are conducted through Internet channels, and the service method of placing orders by telephone has been retained, which can technically avoid the gathering of investors.More importantly, the trading rules of the stock market should not be changed at will, otherwise it will affect market expectations.The stock market is a barometer of the economy and society, and it also has self-repairing and regulating functions.  Of course, considering the outbreak of the epidemic and the recent reaction of overseas markets, the relevant departments will remain highly vigilant about possible changes in the A-share market after the opening of the market, adhere to the bottom line thinking, introduce and research hedging tools, and alleviate market panic.Yesterday, the People’s Bank of China, the Ministry of Finance, the Banking Insurance Regulatory Commission, the Securities Regulatory Commission, and the State Administration of Foreign Exchange have issued the “Notice on Further Strengthening Financial Support to Prevent and Control the Epidemic of New Coronavirus Infection”, maintaining reasonable and sufficient liquidity, especially for enterprises in severely affected areas.Small and micro enterprises have provided differentiated credit support, and put forward 30 pragmatic changes in areas such as renewal or renewal of loans that have been severely affected by the epidemic, and can be extended or renewed, releasing positive policy signals.We have learned that relevant parties are studying policies and measures to restore production and stabilize the economy.Numerous information shows that the new coronavirus pneumonia is curable and controllable, and the impact of the epidemic will not be long-term.We believe that a series of policies and measures have been introduced and implemented one after another to improve market expectations and prevent irrational behavior from intervening better.  On the whole, the opening of the stock market on February 3 was the result of weighing various factors, showing from one aspect the confidence in the market, respect for the rules, and overcoming difficulties.  Reporter: After the opening of the A-share market, can we guarantee the smooth flow of securities transactions and how to ensure the security of epidemic prevention?  Answer: In order to improve the efficiency and security of securities trading services, since 2012, I will promote securities companies across the industry to generally implement a centralized management of information technology systems for securities brokerage business.At present, the securities trading and settlement system and related data information are uniformly operated and managed by the securities company headquarters. The securities business department mainly provides customers with service activities such as account opening, return visits, and answering questions.The proportion of securities trading through network terminals, mobile APPs and other methods has exceeded 95%. In addition, the early telephone entrustment is still in use, and investors’ needs for off-site securities trading have been met.Accordingly, on January 28, I will release the “Notice on Doing a Good Job in the Prevention and Control of Pneumonia of New Coronavirus Infection”, requiring the industry to guide investors to take off-site trading activities during the epidemic prevention and control period.Securities companies have also issued notices to inform customers about the service process in detail.  From what we know, in principle, various securities companies have suspended the on-site trading services of the securities business department to guide investors to conduct securities transactions through off-site methods such as network terminals and mobile APPs.For a few customers who are not familiar with online trading, continue to provide methods such as telephone entrustment and support to ensure that investors’ trading needs are met.Very few customers do need to handle business on the spot. Securities companies have also provided arrangements for prior appointments. According to customer applications, investors will be arranged in batches in counters.After the opening of the market, each securities sales department will arrange only a minimum number of on-site staff, and require all personnel entering the site to measure body temperature, insert masks, implement timing, and regularly clean and disinfect.Fund management companies and futures companies have also promised equivalent arrangements.  I have asked securities companies to continue to explain and guide investors in a variety of ways, including text messages, terminal prompts, etc., provide detailed operating guidelines, unblock consultation and contact methods, and answer investor questions in a timely manner.  Reporter: After the outbreak of the new type of coronavirus, many futures operators have expressed their desire to suspend the night trading of futures. Is there any arrangement for the CSRC?  A: After the outbreak, many futures management agencies did report that under the current circumstances, futures night trading will continue. Some institutions have difficulties in terms of personnel, operation and maintenance, and protection. They hope to suspend night trading.We carried out a serious study. In order to do a good job of epidemic prevention and control in a special period, I will decide to suspend futures night trading from the night of February 3, 2020, and re-notify the specific recovery time.  Reporter: During the epidemic prevention and control, some companies’ business activities were affected to a certain extent. What are the risks of stock pledge and margin financing and securities lending business? What are the countermeasures?  A: The current scale of stock pledge business has steadily decreased, and the balance of stock pledge financing in the venue is zero.88 trillion US dollars, a decrease of more than 45% compared to the previous time. The extended financing period is 1 to 3 years, and the overall performance guarantee ratio is about 213%. The market-wide margin financing margin is about 1.05 trillion yuan, accounting for 2 of the market value of A shares in circulation.13%, the overall maintenance guarantee ratio exceeds 280%, 50 times the listed earnings ratio of the stock financing balance does not exceed the appropriation, and the average daily closing amount of the entire market since 2019 is about 20 million.The above businesses have a certain margin of safety and the risks are generally controllable.  Considering that the epidemic situation has temporarily affected the business activities and cash flows of some enterprises and individuals, in order to alleviate the liquidity difficulties of related enterprises and individuals and reduce market impact, it is planned to take measures according to the impact of the disease in different regions.First, if the stock pledge agreement expires during the epidemic prevention and control period, and the customer applies for an extension due to difficulty in repayment, such as a customer in Hubei (that is, a company with a registered place in Hubei Province or a resident in Hubei Province, the same below)), You can apply for an extension of 6 months, with the assistance of the securities company for the extension period; if you are from other regions, you can negotiate with the securities company for an extension of 3 to 6 months.  Second, before the epidemic situation is resolved, securities companies in Hubei and other regional financing and securities lending customers who have been isolated or treated due to the epidemic will not take the initiative to enforce liquidation; for other customers, securities companies shall take the initiative to implement the agreement.Strengthen communication with customers and appropriately extend the time for customers to replenish collateral.  The CBRC also made corresponding arrangements for stock pledge loans provided by banks and trust companies.  Regarding the liquidity issues of securities companies, the Interbank People’s Bank of China Securities Regulatory Commission actively supports securities companies to supplement liquidity by issuing special financial bonds, short-term financing bonds, and corporate bonds in a variety of ways in the interbank market and the exchange market, and increase related financing quotas.Support securities companies to replenish capital by issuing additional shares.  Reporter: During the epidemic prevention and control, the pressure on enterprises to mitigate interference to terminate the debt repayment of corporate bonds will be under pressure. What policy support measures will the CSRC have?  Answer: Relative to the average average, the bond market in the first quarter of this year has little pressure on corporate bonds to mature and resell, and the risks are generally controllable.In February 2020, there were 65 corporate bonds that faced maturity and resale, amounting to 68.8 billion U.S. dollars. In March 2020, there were 212 corporate bonds that faced maturity and resale, $ 231.7 billion.However, considering that the outbreak of the new coronavirus pneumonia has caused temporary impacts on some enterprises’ production and operation sites, such as procurement, production and sales, and cash flow rebates, the company’s normal debt repayment fund-raising activities will also be affected. It is not ruled out that some enterprises will encounterShort-term liquidity difficulties and slenderness make it impossible to pay the principal and interest of bonds on schedule.  In order to alleviate the liquidity difficulties of related companies, prevent default risks, and reduce market impact, I have adopted relevant measures.Issuance of corporate bonds due during the epidemic prevention and control period, and if the issuer’s production and operation are normal, I will support the issuance of new and old by establishing green channels and other measures; instead, I will actively guide securities companies and other intermediaries with the stock exchangeDo relevant risk monitoring and market services, urge the trustees to actively perform their duties, strengthen communication and coordination with investors, actively guide investors to corporate bonds due during the epidemic prevention and control period, and reach renewal arrangements with issuers to adjust repaymentsThe principal and interest payment cycle helps the issuer to get through the difficult period.  Reporter: The capital market may be distorted by the pneumonia epidemic affected by the new coronavirus.Will the Air Force’s ongoing capital market reforms be affected?  A: We have noticed that domestic and external markets have responded to the new pneumonia epidemic.Under the strong leadership of the Party Central Committee, joint efforts from across the country will surely defeat this epidemic.The impact of the epidemic on the market is short-term and will not change the long-term trend.  Last year, major breakthroughs were made in capital market reform.The “Deep Reform 12” we have introduced is based on the long-term development of the capital market. It involves deep-level institutional reforms, gradually improving the basic system of the capital market, improving market functions, improving market efficiency, and enhancing internal stability.These reforms are fundamental and systematic. They are market-oriented and rule-of-law reforms, which will benefit the entire capital market and bring more possibilities for market participation.Therefore, the direction and determination to advance the reform will not be changed by the temporary difficulties brought about by the epidemic.  Practice over the past 30 years has shown that the stable and healthy development of the domestic capital market depends fundamentally on reform.Only through reform can we truly create a standardized, transparent, open, dynamic, and so-called capital market.Such a market is bound to be more hypertensive.