Editor's note: Dong Shaopeng is the executive deputy editor-in-chief of the Securities Daily. The article reflects the author's opinions and not necessarily the views of CGTN.

On Feb. 17, the China Securities Regulatory Commission, the Shanghai, Shenzhen and Beijing stock exchanges, the National Stock Exchange Corp., the registration and clearing institutions, and industry associations collectively issued 165 rules and regulations. The freshly implemented guidelines mark the launch of the stock issuance registration system throughout the entire market. China's securities regulatory reform has entered a stage where policymakers are pursuing deeper reforms.

The essence of the new system is that companies apply to the trading place for issuance and listing in accordance with the provisions of the law and the rules and regulations of the securities market. The new system ensures that companies meet the conditions for issuance and listing with sufficient disclosures, comply with relevant laws, and maintain sustainable operations. If listed companies no longer meet the basic conditions for continuous listing, they will be delisted according to the law. The administrative and regulatory authorities do not review whether the enterprise initially meets listing standards and whether it meets the requirements for continuous listing. They only decide whether a company's behavior is legal and settle any issues according to the law.

The goal of the stock issuance registration system is to deepen the reform of administrative supervision and make the market and government play decisive roles in the allocation of resources and other issues. The CSRC cancelled the issuance examination commission and the review committee for Mergers, Acquisitions and Restructurings of Listed Companies. All stock issuance, delisting and other audit work have been put into the stock exchanges and the national stock transfer system. The CSRC is responsible for the supervision, including oversight of the issuance and listing of the trading places, and the timely disposal of any problems.

The CSRC supervises listed companies through daily inspection, centralized inspections and verification of reporting materials. At the same time, the CSRC needs to do more cultivation work in shaping the virtuous circle of the market. That's by encouraging long-term investment and value investment, and improving the quality of various market entities. This work mainly depends on optimizing the legal environment, enforcing the law fairly, improving the information dissemination mechanism, unblocking the value chain, and strengthening forward-looking market research.

The implementation of the registration system is an important step for the marketization of China's stock market. However, the full implementation of the registration system reform cannot be regarded as a panacea to solve all market problems at once. It is not easy to reach a more market-oriented mechanism and achieve the unification of efficiency and fairness.

This is because the demand for Chinese enterprises to issue shares is too high, while the growth of long-term funds is relatively slow. Some enterprises only use the issuance of shares as a financing channel, whitewash their statements at the beginning of the issuance and listing, and try to expand the scale of financing. They do not fully consider the long-term value growth and expectation management. Relevant intermediary agencies are also eager for quick success and profits and pay little attention to the continuous operation of listed companies. There is a high probability that the stock price will be significantly adjusted two or three years after the listing. I personally favor strengthening the system design of supervision over the continuous operation of listed companies, strengthening the integrity evaluation and assessment of relevant intermediaries, and improving the rewards and punishment system measures. We should crack down on all violations of laws and regulations in accordance with the law and punish every offender.

Authorities should also study the mechanism of reasonable transfer and circulation of stock shares of listed companies, combine international practices with the realities of the Chinese market and build a credit mechanism in which all shareholders are responsible for their company's operations and stock price. The current system has many restrictions on the number and pace of reduction, which can't fully reflect market logic. We should reduce the threshold of reduction of old shares on the basis of high-quality information disclosure, so as to guide the issuance price more justly.