The newly revised Securities Law of People’s Republic of China (PRC) (hereinafter referred to as the new Securities Law) was recently passed and will be officially implemented on March 1, 2020. China’s capital market will enter a new stage of development. At present, relevant departments are in full swing to introduce relevant supporting measures. Analysts generally believe that the new Securities Law further improves the basic system of the securities market, helps to improve the quality of listed companies, effectively protects the legitimate rights and interests of investors and better serves the real economy. In the future, with the improvement of various reform systems, China’s capital market will give generate a strong vitality and competitiveness.

　　Let the market play a decisive role.

　　As the "basic law" and "fundamental law" of the capital market, the new Securities Law has aroused widespread concern at home and abroad since its inception.

　　Among them, the most striking thing is the change of the legal conditions of the company’s initial public offering (IPO). Before the amendment, the requirement of the law for IPO companies was "sustainable profitability", while the new Securities Law clearly stated that the relevant requirement was "sustainable operation ability". He Haifeng, director of the china law society Securities Law Research Association, said that the former is compatible with the approval system; The latter is compatible with the registration system, because the operating ability is more inclusive and diversified than the profitability, and there is more reason to leave it to the market for independent judgment.

　　Chen Hua, a senior researcher at the National Institute of Development and Strategy of Renmin University of China, pointed out that anti-fraud is the core theme of securities issuance supervision, and the goal of the approval system is to fight against issuance fraud through auditing. However, it can’t solve the problem of fraudulent issuance after all, and it is easy for people to take advantage of loopholes, such as using very professional methods to make financial statements beautiful.

　　"Price is the core of the market mechanism, but both price and quantity must be market-oriented and work together. The price formed after the release of the audit and the release of the rhythm can truly reflect the scarcity of resources, accurately guide the behavior of market players, and form an endogenous self-balancing mechanism in the market. " Chen Zhen said that high-quality inquiries and information disclosure will definitely make counterfeiters fully exposed.

　　Wu Wenfeng, vice president of Antai school of economics and management of Shanghai Jiaotong University, pointed out in an interview with this reporter that the registration system will not affect the overall quality of listed companies, but will help the market to play a decisive role and improve the overall efficiency of the capital market.

　　The punishment for breaking the law and breaking the trust is even stronger.

　　It is worth noting that the new Securities Law not only opens the door to financing for more high-quality enterprises, but also greatly improves the punishment for illegal acts in the capital market.

　　For example, for fraudulent issuance, the original fine of 5% of the maximum amount of funds raised will be raised to double the amount of funds raised; For information disclosure violations of listed companies, the maximum fine can be increased from 600,000 yuan to 10 million yuan; If the controlling shareholder or actual controller of the issuer organizes or instigates to engage in false statements, or conceals relevant matters, resulting in false statements, it is stipulated that a maximum fine of 10 million yuan can be imposed.

　　The vitality brought by the registration system to China’s capital market will not only be reflected in the listing of more high-quality and potential enterprises, but also in the timely delisting of inferior companies.

　　Chen Hua introduced that in the mature registered market, although listing is relatively easy, it is very difficult to maintain the listing status because the delisting elimination rate is generally high. The most prominent feature of registration system audit is that the traditional administrative examination and approval is replaced by inquiry and disclosure. The change of the registration system from "examination" to "questioning" does not mean that the stock market has released a lot of water.

　　"The delisting system is the basic system of the capital market. The average annual delisting rate of Nasdaq market in the United States is 8%, and the delisting rate of NYSE is around 6%. Science and technology innovation board of Shanghai Stock Exchange is positioned as a science and technology enterprise in the early stage of service. After listing, the operating uncertainty of enterprises is high, some enterprises will grow into leaders and giants, while others may gradually fail, and the market differentiation will be more obvious than other sectors. It is very important to establish an orderly delisting system. " Chen Hao said.

　　Wu Wenfeng further pointed out that it is always an inevitable requirement to improve the competitiveness of China’s capital market system, whether it is strictly implementing the delisting system, increasing the illegal cost and improving the punishment for illegal activities in the capital market.

　　Rooted entities show greater appeal

　　The imminent implementation of the new Securities Law has also boosted practitioners’ expectations for the future of China’s capital market.

　　"The capital market is attractive from both the macro-economic and recent policy perspectives." Lian Ping, chief economist of Bank of Communications, believes that in the next six months or a year, macro-policy factors will be superimposed together, which will be beneficial to the capital market.

　　"For a long time, the proportion of traditional industries and large enterprises in China’s capital market is relatively large, and the influence of emerging enterprises reflecting new industries, new formats and new business models is insufficient. In the future, with the implementation of the new Securities Law and the steady progress of the registration system reform, this phenomenon is expected to be effectively improved, and the transformation and upgrading of the real economy will gain more support. In the process of new economic growth, capital market investors will also receive corresponding returns. " Wu Wenfeng said.

　　"According to the authorization of this law, the CSRC will fully consider the market reality, especially to grasp the organic and unified connection of securities issuance, securities registration and market affordability, and promote it step by step and steadily in accordance with the unified deployment of the State Council." Cheng Hehong, director of the legal department of the China Securities Regulatory Commission, said. The CSRC said that it will speed up the formulation, revision and improvement of supporting rules and regulations, improve the basic system of the securities market, strictly implement the provisions of the revised law, continuously improve the level of supervision and law enforcement, and give full play to the positive role of the new Securities Law in promoting market reform, maintaining market order, strengthening market functions, and protecting the legitimate rights and interests of investors.

　　Since July 1st, many places have adjusted the deposit base of housing provident fund. For example, the upper limit of the monthly deposit base of Beijing housing provident fund is raised to 5102 yuan, and the income of employees’ individual provident fund accounts will increase.

　　Different from previous years, some areas have also adjusted the upper limit of the housing provident fund deposit ratio this year. According to the Notice on Appropriately Reducing the Deposit Ratio of Housing Provident Fund in Phases issued by the State Council in April, it is required that the deposit ratio of housing provident fund shall not exceed 12%. The reporter from Zhongxin. com found that Guangdong, Anhui, Tianjin, Chongqing and other places have successively issued notices to reduce the maximum deposit ratio of housing provident fund from 20% and 15% to 12%.

　　The provident fund deposit base began to implement new standards and was raised more.

　　From July 1st, many places began to implement the newly approved standard for the deposit base of provident fund. The newly set monthly deposit amount and lower limit of housing provident fund are based on the average monthly salary and minimum wage of local employees in 2015 respectively. Judging from the adjustment range, the upper limit of monthly deposit in Beijing, Nanjing and other places has been raised above 400 yuan.

　　The Office of the Beijing Housing Provident Fund Management Committee issued a notice on June 21, saying that according to the calculation, the upper limit of the monthly contribution of the housing provident fund in 2016 was 5,102 yuan, and the upper limit of the monthly contribution of employees and units was 2,551 yuan. In 2015, the upper limit of the monthly deposit of Beijing housing provident fund was 4,654 yuan, compared with 448 yuan this year.

　　Nanjing requires that the maximum deposit base of housing provident fund in 2016 should not exceed three times (20,200 yuan) of the monthly per capita salary of employees in Nanjing in 2015, breaking the "2" prefix for the first time; At the same time, the upper limit of monthly deposit is 4,848 yuan, which is higher than 4,368 yuan in 2015 in 480 yuan.

　　The relevant notice of Shanghai to adjust the deposit base of housing provident fund shows that the monthly deposit limit of housing provident fund in 2016 is 2494 yuan, which is 204 yuan higher than the monthly deposit limit of 2290 yuan in 2015.

　　The reporter noted that in areas where the average monthly salary and minimum wage standard of employees in 2015 have not yet been published, there is a "temporary shortage" of the deposit limit. For example, because the minimum wage in 2015 has not been announced in Nanjing, it is temporarily impossible to calculate the minimum monthly deposit.

　　After adjustment, under the condition that the deposit ratio remains unchanged, the employee’s salary may be slightly reduced, but the unit’s simultaneous deposit amount will increase, and the employee’s personal housing provident fund account income will increase. From the perspective of buying a house and finally withdrawing income, it is actually good.

　　We will implement the deposit ratio "height limit order" and "guarantee the bottom" in many places.

　　In April this year, the State Council issued the Notice on Standardizing and Appropriately Decreasing the Deposit Ratio of Housing Provident Fund in Stages, requiring that all regions should strictly implement the relevant regulations within two years from May 1, 2016, and all housing provident fund deposit ratios above 12% shall be standardized and adjusted, and shall not exceed 12%.

　　Based on this provision, Guangdong, Jilin, Anhui and other places will adjust the upper limit of the proportion of housing provident fund units from 20% to 12%; Fujian, Chongqing, Tianjin and other places reduced the maximum deposit ratio from 15% to 12%.

　　Previously, the website of the People’s Government of Guangdong Province published a series of plans for supply-side reform in 2016-2018, which mentioned that Guangdong would reduce the proportion of housing provident fund deposit, and the upper limit of deposit would be reduced from 20% to 12%. At the beginning of July, Guangzhou, Dongguan and other cities also officially adjusted the upper limit of housing provident fund deposit ratio to 12%.

　　At the same time, the deposit ratio is "limited", and the work of "guaranteeing the bottom" is promoted simultaneously. According to Article 18 of the Regulations on the Management of Housing Provident Fund, "the deposit ratio of housing provident fund for employees and units shall not be less than 5% of the average monthly salary of employees in the previous year; Cities with conditions can appropriately increase the deposit ratio. "

　　To this end, Qinghai proposed that the contribution of housing provident fund units can be determined by themselves according to the operating conditions of enterprises, and shall not be less than 5%.

　　The minimum deposit ratio implemented by Nanjing Provident Fund Management Center is 8%; Changchun stipulates that except for some enterprises with insufficient funds, they can apply for a phased reduction of the deposit ratio, and the deposit ratio of units and employees is not less than 7%.

　　Set and adjust the "timetable" in many places. Enterprises with operational difficulties can pay back or postpone payment.

　　The adjustment of the deposit base of housing provident fund has been implemented since July 1. In order to ensure the smooth progress of the work, many places have also set a "timetable" for adjustment.

　　Chengdu requires that all units can adjust the deposit base of employee housing provident fund through the online government affairs hall of Chengdu housing provident fund or the windows of various outlets. In principle, the adjustment should be completed before July 30; Dongguan said that if the depositor fails to go through the relevant procedures on time, it will be enforced from August; The approval time for Fujian is July 5-August 5.

　　In addition, according to the Regulations on the Management of Housing Provident Funds, enterprises with operational difficulties can enjoy the corresponding "relaxation" policy. That is, after passing the corresponding audit, it is allowed to pay back or postpone the provident fund, and there are different management regulations and audit conditions in different places.

　　Chongqing puts forward two conditions for the identification of enterprises with production and operation difficulties: continuous losses for more than three years, and the average monthly salary of employees is lower than 50% of the average monthly salary of employees in urban non-private units in the city last year; Or stop production or business, and stop paying wages for more than half a year. In principle, the suspension of deposit shall not exceed one year at a time.

　　Guangzhou proposed that units with difficulties in deposit can apply for reducing the deposit ratio (less than 5%) or delaying payment according to the current regulations. However, there is no specific holdover period. (zhong Qing)

　　On March 25th, Zero Run disclosed its financial report for 2023, and it was still in a loss state for the whole year, with a net loss of 4.216 billion yuan and a gross profit margin of only 0.5%, which was still far behind LI and Weilai Automobile. At present, the price war of automobile enterprises has entered a white-hot stage, and the price band competition of zero-running automobile positioning is extremely fierce. With the listing of the second brands of Tucki and Weilai, and the price reduction of products of enterprises such as (), the zero-run cars will face more intense market competition.

　　Sustained loss

　　In 2023, the revenue of zero-running cars reached 16.75 billion yuan, a year-on-year increase of 35.2%; The net loss was 4.216 billion yuan, and the net loss in 2022 was 5.11 billion yuan, which narrowed the loss. Among the new car companies, LI has turned losses into profits, with a net profit of 11.81 billion yuan in 2023.

　　From the perspective of revenue, the zero-running car is the lowest among the four new power companies in Hong Kong. In 2023, the revenues of Ideality, Weilai, Tucki and Zero Run were 123.85 billion yuan, 55.618 billion yuan, 30.68 billion yuan and 16.75 billion yuan respectively.

　　Market participants believe that "to become a new energy car company that stays at the’ poker table’, it needs at least hundreds of billions of yuan in income, and the head car company will reach trillions of yuan." Obviously, the zero-running car is still a long way from this goal.

　　In 2023, the gross profit margin of zero-run cars turned positive for the first time, with a gross profit margin of only 0.5%, which is still far behind that of LI and Weilai cars. Li Xiang, CEO of LI, once said that only when the gross profit margin of new energy vehicle enterprises exceeds 20% can they achieve stable operation.

　　It is worth noting that by the end of 2023, the restricted deposits pledged by retail cars were 3.92 billion yuan, a year-on-year increase of 55.5%. According to the financial report, the company took some financial assets, land use rights and property, plant and equipment at fair value through profit or loss as collateral to obtain loans.

　　In terms of R&D expenditure, in 2023, the R&D expenditure of zero-run vehicles was 1.92 billion yuan, a year-on-year increase of 36.1%. The zero-run car said that it was mainly due to the increase in investment in R&D activities and the increase in the number of R&D personnel.

　　Zhu Jiangming, founder, chairman and CEO of Zero Run Automobile, said: "Although there is still a long way to success, we have taken another big step forward in 2023."

　　Sales have not improved.

　　In 2023, a total of 144,200 zero-running cars were delivered, only 72% of the annual sales target of 200,000 vehicles was completed. It is reported that the sales target of zero-running cars will double in 2024, reaching 300,000 to 400,000.

　　However, in 2024, the sales of zero-running cars did not improve, and 12,277 vehicles were delivered in January, down 34% from the previous month. 6,566 vehicles were delivered in February, down 46.5% from the previous month, and 18,843 vehicles were delivered in the first two months of this year. There is a big gap between the ideal and the world of the first camp.

　　The retail car is positioned in the market of "100,000 yuan to 300,000 yuan", while the price band of mainstream models is in the market of 100,000 yuan to 200,000 yuan, and the competition is extremely fierce.

　　It is worth noting that since 2023, zero-running cars have turned to pure electric+extended-range dual-power layout. At the beginning of February 2023, Zero Run launched the first extended-range model C11, with a price of 149,800 to 185,800 yuan. At the same time, the company accelerated the expansion of the international market. Zero-run cars and overseas markets are regarded by the industry as "self-help" behavior under the fierce price war. In 2023, C11 delivered 80,700 vehicles, the scale was still small, and the company’s gross profit margin was only 0.5%.

　　After the Spring Festival, BYD took the lead in launching the "first shot" of the price war of new energy vehicles in the Year of the Loong, bringing new energy vehicles into the era of 70,000 yuan, and shouting the slogan "Electricity is lower than oil". On February 19th, BYD announced that its two plug-in hybrid models, Qin PLUS Glory Edition and Destroyer 05 Glory Edition, were listed, with a starting price of 79,800 yuan. Compared with the old models, the prices of the two new models both dropped by 20,000 yuan. With the intensification of the elimination of the new energy vehicle market, the competition in the price band of the zero-run vehicle is more intense. Whether it can break through and achieve the sales target in 2024 as scheduled can only be expected by the market performance.

　　Price war continuation

　　This year, the auto market will usher in more intense competition. Cui Dongshu, Secretary-General of the Passenger Car Association, said that the price war in the national passenger car market will remain fierce in 2024.

　　LI lowered its delivery target in the first quarter, reflecting the fierce competition in the current new energy vehicle market. On March 21st, LI lowered its delivery guideline for the first quarter. Due to the sales orders falling short of expectations, Ideal now predicts that the delivery volume of vehicles in the first quarter of 2024 will be 76,000 to 78,000, which is about 24% lower than the previously released 100,000 to 103,000 vehicles.

　　In addition, china securities journal reporter noted that Tucki and Weilai are aiming at the mainstream price band in the market and will launch new brands.

　　A few days ago, Xpeng Motors CEO He Xiaopeng revealed in the earnings conference call that during the Beijing Auto Show, Xpeng Motors will officially launch a brand-new brand for 100,000 to 150,000 yuan. The first model of the brand-new brand will be launched and delivered in the third quarter. In addition, Tucki’s main brand will deliver a brand-new model in the second half of the year.

　　Li Bin, chairman of Weilai, said recently that Weilai’s second brand was named "Ledao" and positioned as a family car. "Ledao" brand will be officially released in mid-May. It is reported that the price is 150,000 to 250,000 yuan.

　　Li Bin said that the first model of "Ledao" brand will be released in the third quarter, and mass delivery will begin in the fourth quarter. The second car under the new brand is an SUV for large families, which has entered the mold opening stage and will be introduced to the market in 2025.

　　Chen Shihua, deputy secretary-general of China Automobile Association, said in an interview with china securities journal: "If the new energy automobile market is as fierce as it was in 2023, there will be a lot of new energy automobile enterprises in 2024, which will be difficult to operate because they lose too much money."

　　Ping An Securities believes that the growth rate of head new energy vehicle enterprises will be under pressure in 2024, and the price war led by head new energy vehicle enterprises will continue, especially in the mainstream price band of 100,000 yuan to 200,000 yuan, while the battery cost provides room for further price reduction of car enterprises.