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Li pointed out that the return of overseas listed companies to a-share industry experts hot discussion of CDR and other ways to land safely

Classification:
Industry trend
2018/03/30 11:10
The next step is to take many new measures to promote "Internet plus". For example, some "Internet plus" companies used to list overseas, but now they are required to improve the institutional measures for listing in China and welcome them back to the a-share market. - li
 
On March 20, premier li keqiang met and answered questions from Chinese and foreign journalists at the great hall of the people in Beijing. Li said, the next step will be taken to promote "Internet +" many of the new measures, such as in the past, some "Internet +" enterprise always to get listed overseas, now have asked related departments to improve the system of the domestic market, welcome them to return to A shares, at the same time to create more favorable for innovative start-up companies listed in, conform to the provisions of the law.
 
"Internet plus, as a new thing, has its own problems," li said. "the key is to adopt an inclusive and prudent approach to regulation." One of the important reasons for the long-term stability of the giant Chinese economy is that we have successfully set the sail of "Internet plus" in the new wave of the world scientific and technological revolution.
 
"Internet plus" plus "intelligence plus" brings dividends
 
"Premier li keqiang mentioned in his answer to the question that we should seek advantages and avoid disadvantages, and adopt an inclusive and prudent regulatory approach to 'Internet plus', which highlights China's courage to encourage scientific and technological innovation." Liu ying, a researcher at the chongyang institute of finance at renmin university of China, told securities daily on March 20.
 
According to liu ying, "Internet plus" has not only cultivated new drivers of growth, but also developed new industries, technologies, models and new drivers of growth. In addition, through the "Internet plus" model, it has transformed and enhanced traditional drivers of growth and traditional industries, stimulated market vitality, promoted consumption as the main driving force for development, and brought about profound changes in the economic structure.
 
, a researcher with the institute's chief financial Zhu Zhenxin said in an interview with "securities daily" reporters, "Internet +" is put forward, after China's mobile Internet has entered a new era, the prime minister, and put forward the "smart +, will surely brings to the artificial intelligence technology of dividends, in particular and the combination of financial, medical and other traditional industries, imagination is very large. However, compared with the Internet, the impact of the dividend of artificial intelligence is limited. First, the application scope is not so wide; second, the application stage is still relatively preliminary. The technology needs to be further improved.
 
Fortune securities network financial huan, deputy general manager in an interview with "securities journal" reporter said that the current a-share market listed companies structure is based on the traditional industry still is given priority to, in the context of China's economic transformation and upgrading, it can not fully reflect the real appearance of China's economic development, also is not fully realize the effective connection with the new economy needs. Therefore, a series of new measures should be taken to support the development of enterprises in the new economy and new business forms, including "Internet plus".
 
Zhao said that "Internet plus enterprises" mainly rely on their unique core technology or disruptive business model to dig deep into the huge opportunities in the new economy. The return of "Internet +" enterprises to the market will help improve the overall quality of a-share listed companies, help form A benign and win-win situation of financing and investment, and lead future investors to invest in value growth.
 
Pushing CDR to land has three big implications
 
"The prime minister's comments on Internet companies mean the return of the 'unicorn' will be accelerated." Li daxiao, chief economist of uob securities, said in an interview with securities daily. In his view, there are three ways for Internet companies to be listed in China: first, issuing China depositary receipts (CDR) to ensure that the original company structure and shareholders will not change; at the same time, domestic investors can enjoy the dividends of Internet development. Second, it can be delisted in the local market and return to A shares through IPO. Third, return A shares through backdoor, such as the return of 360.
 
In view of this, Yang gaoyu, a researcher from guosen securities development research headquarters, agreed with securities daily that CDR is an effective measure to solve the laws and regulations of the two places. He thinks the CDR should land soon, for three reasons:
 
First, we will vigorously promote the new economy and help transform and upgrade the real economy. Innovation-driven development strategy has become the inevitable choice for China to change its economic development mode and resolve the deep-seated contradictions and problems in economic development. It has become an important starting point for the government to vigorously develop the new economy, which is characterized by new technologies, new industries, new business forms and new business models, and supported by new production factors such as knowledge, technology, information and data.
 
Second, enhance the international influence of China's capital market. The launch of CDR is an important step in the internationalization of Chinese financing. In the future, the enterprise scope of CDR will also gradually expand from the return of service technology stocks to overseas high-quality enterprises. The development of the depositary receipt market will help promote the benign interaction between the domestic and foreign capital markets, enrich the transaction varieties of the capital market, increase the investment channels for domestic investors, and improve the international operation ability of intermediary institutions.
 
Third, to open up new channels for investors to share the dividends of Chinese new economy enterprises. For historical reasons, some technology stocks that represent China's new economy are not listed on a-shares. Take Internet enterprises as an example. It has been nearly 20 years since the first overseas listing of Internet enterprises in 1999. Over the past two decades, the Internet has developed like a high-speed railway into every aspect of people's lives. "Internet plus" represents the most dynamic and dynamic new force in China's economy. However, most of the giant companies in various segments of the Internet in China are not listed in the a-share market. Therefore, technology stocks, especially unicorns, can be returned through the form of CDR, so that a-share investors can buy the shares of these high-quality companies and share the fruits of their growth.
 
"Unicorns" to return to A stable tone
 
"Internet companies that can return to a-shares must be quality enterprises, leading enterprises, and will not come back in large quantities." Li daxiao said.
 
"From the perspective of the stable development of the market, the regulators will not open the floodgates, but proceed in a steady pace," Yang said.
 
In addition, li warns that the best place to buy an innovative blue-chip company is not when it goes public, but when it is in its infancy or after it has been cooled by the market. For these enterprises must not chase high valuation necessarily contains high risk.
 
Zhu zhenxin stressed that the unicorn policy of Internet enterprises should be cautious, and any policy should not violate the initial intention of the capital market: first, let the market play a decisive role; second, let high-quality enterprises go public; third, let investors enjoy the investment value of high-quality enterprises.
 
"Let there is nothing wrong with unicorns return to A shares, the key is in what way, should set up A market-oriented standards, let the market mechanism to select, to pricing, said regulators need to do is not too much to the opinion of the enterprise, but on the other hand control agency, let the agency take responsibility for their actions, on the other hand tip risk for investors." Zhu zhenxin said.