Service Trade Club | Securities Regulatory Commission Wang Jianping: Encourage the providing PE share transfer through the regional equity market

Zhongxin Jingwei, September 4th (Ma Jing) "Private equity (PE) share transfer in China is still a new thing. Industry practice has just started, and pilot work also faces some difficulties and challenges. It needs to be gradually resolved in the subsequent development process." On the 4th, Wang Jianping, director of the Secondary Department of Market Supervision of the CSRC, stated at the 2022 Global PE Forum that the CSRC's next step will vigorously cultivate investors in secondary market institutions in professional private equity and support regional equity markets and various institutions to strengthen cooperation. Do a good job.

With the continuous development of China's capital market, the equity investment market has ushered in the flourishing development in recent years. Data show that as of the end of July 2022, 14,800 private equity entrepreneurial investment managers have been registered, private equity investment funds have survived nearly 1.1 trillion yuan, and entrepreneurial investment funds have reached 2.7 trillion yuan.

However, China's equity investment and entrepreneurial investment have always faced the difficulties of exit and slow. Earlier, the CSRC has successively approved the pilot of equity investment and entrepreneurial investment shares in the Beijing Equity Exchange Center and the Shanghai regional equity market to take a key step in improving the liquidity of the venture capital market.

Wang Jianping said that since the pilot for more than a year, it has made significant progress in solving the problem of the withdrawal of the state -owned background fund. However, he also emphasized that there are still some problems in the current transfer of private equity share.

One is that the market market is still insufficient. In 2021, the scale of overseas private equity secondary market transactions exceeded 100 billion yuan. In 2021, the secondary market transaction of China's private equity equity occurred 353, with an amount of 66.8 billion yuan. The market attraction needs to be significantly expanded.

The second is that the share valuation price is difficult to form consensus, and it needs to be continued. "For asset pricing for the combination of corporate equity, it is a difficult problem. If it is a multi -share and an asset package composed of equity, the valuation pricing is more difficult. In addition, whether the share transfer of the state -owned background must be evaluated, how to conduct asset evaluation of assets, how to conduct asset evaluation It also needs to be studied carefully. The Shanghai State -owned Assets Supervision and Administration Commission issued the general rules and processes of asset valuations, but for state -owned enterprises, more explorations and attempts are needed. "Wang Jianping said.

Wang Jianping also mentioned that the current share transfer has not yet formed a system, and there are still some shortcomings, and market -oriented institutions need to be further improved.

"Traditionally, the transfer of private equity shares is a matching method of complete outside, offline, one -to -one, one -to -one matching method. We are now doing similar attempts through the on -site and online, including some exchanges. It is our basic idea to make this mechanism more effective and better to serve the industry than traditional models. "Wang Jianping said.

Wang Jianping said that based on the above ideas, the Securities Regulatory Commission will work in the next four aspects.

The first is to deepen the pilot work of the transfer of share, promote the Ministry of Finance, the SASAC and other ministries and commissions to strengthen policy supply in terms of the entry of state -owned assets funds, strengthen communication and coordination with local governments, strengthen policy support, and create a good external environment.

The second is to vigorously cultivate investors in secondary market institutions in professional private equity, support regional equity markets to strengthen cooperation with various institutions, and encourage comprehensive services such as share transfer through regional equity markets.

The third is to encourage high -quality intermediary agencies in the secondary market of private equity, expand the service scope of intermediary agencies, build a full -process service system, and gradually attract market -oriented shares to enter the market.

The fourth is to improve the second -level market ecosystem of private equity, and to study the valuation pricing together with all parties, especially the fund shares related to the investment background, and discuss a more market -oriented system with relevant departments.

From August 31st-September 5th, the 2022 China International Services Trade Fair (hereinafter referred to as the service trade association) hosted by the Ministry of Commerce of China and the Beijing Municipal People's Government was held in Beijing. The 2022 Global PE Forum is one of the Special Exhibition Forum for the Financial Society of Service and Trade. It is also the world's earliest global summit for the equity investment industry. It has been held for twelve consecutive sessions.

(For more report clues, please contact the author Ma Jing, mailbox: [email protected]) (Zhongxin Jingwei APP)

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Editor in charge: Chang Tao

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