On August 24, the Shenzhen Stock Exchange implemented the registration system on the Growth Enterprise Market. Following the implementation of the registration system for the SSE Science and Technology Innovation Board, another A-share sector has achieved the full implementation of the registration system. The implementation of the GEM registration system will have some important changes in the trading rules, and the implementation of the registration system on the GEM will also have a profound impact on the GEM.

Currently, there are four main changes in the trading system. One is to adjust the growth and decline limits of ChiNext stocks. The second is to adjust the maximum number of single declarations under the GEM registration system, and the upper limit is much higher than that of the Science and Technology Innovation Board. Third, shares issued under the GEM registration system can be used as the target of margin trading and securities lending from the first trading day. Fourth, a special logo for stock depositary receipts has been newly added.

The main impacts on the market are as follows:

The GEM registration system has a wide audience, and the plate's activity is expected to increase. The investment threshold of the Science and Technology Innovation Board is relatively high, requiring "two years of trading experience and no less than 500,000 yuan in assets in the 20 days before the opening", while the investor threshold of the GEM is "two years of trading experience and 20 days before the opening. The average daily assets is not less than 100,000 yuan." According to Wind data, the current number of individual investors with A-share holdings with a market value of between 100,000 and 500,000 is about 12 million, which is about five times the number of investors above 500,000. The implementation of the GEM registration system means that more individual investors can participate in the registration system, which will help increase the trading activity of the GEM.

History shows that after the relaxation of trading restrictions, the index volatility will increase, and the amplitude will gradually expand, but the market pricing efficiency has been significantly improved. Since the launch of the Sci-tech Innovation Board registration system, its index trend has shown greater volatility in stages. After the implementation of the GEM registration system, investors need to have a higher risk tolerance. In the short term, increased volatility will suppress investors with low risk preferences. The enthusiasm of entering the market has a crowding-out effect on short-term trading funds and board funds. But on the other hand, the new 20% price limit rule can further enhance the liquidity of ChiNext stocks. At the same time, a higher price increase and decrease is conducive to faster stock price adjustments, pricing efficiency is significantly improved, and it is also conducive to attracting some long-term capital allocation A shares assets.

From the perspective of capital market reform, the implementation of the ChiNext registration system fully reflects the market orientation. The registration system highlights the concept of financial service entities, provides financing services for growth-oriented and innovative enterprises, and supports the deep integration of traditional industries with new technologies, new industries, new formats, and new models in the process of high-quality economic development. Really give the right of choice to the market, and enhance the sense of reform of all parties in the market. With the continuous registration and listing of high-quality companies, market funds will continue to be concentrated in high-quality companies, non-performing assets such as shell companies will continue to be marginalized, and the market will play a decisive role in resource allocation. This process may lead to a substantial increase in the delisting rate of shell companies Liberation of the funds occupied by the shell company has truly improved the efficiency of capital allocation, allowing capital to flow to high-quality companies that need it most.

The reform of the registration system of the ChiNext will greatly improve the market ecology in the long term, which will help the A-share market structure better match the new economic development pattern, and enhance the symbolic significance of the stock market to the Chinese economy. The current international situation is severe, and the development of high-tech industries will be the key to China's breakthrough. The promotion of industrial upgrading and the development of high-tech industries through capital markets is also the mission and destination of capital markets under the registration system.