In the first quarter of 2020, affected by the COVID-19 epidemic, the financial market became turbulent, and the global economic prosperity declined significantly after March. The global stock market is in great turmoil, the liquidity crisis of the US dollar broke out, assets were sold off, and the prices of risky assets and safe-haven assets plunged one after another. The VIX index rose more than the financial crisis in 2008. In the latest World Economic Outlook Report released by the International Monetary Fund, the world economic growth is facing the most serious blow since the Great Depression in the 1930s: for the first time, the world is facing the simultaneous recession of both developed and emerging economies. The IMF predicts that the global GDP growth will shrink by 3% in 2020, and the global economy will recover to the 5.8% YoY growth level in 2021. The COVID-19 epidemic will cause losses of about US$9 trillion worldwide in the next two years, exceeding the total GDP of Japan and Germany. If the epidemic continues until 2021, global GDP may shrink by 2.2% next year.
The "registration-based system" was first proposed in 2013 but has not been implemented over the past six years. In November 2013, the third plenary session of the 18th CPC Central Committee reviewed and issued the Decision of the Central Committee of the Communist Party of China on Some Major Issues Concerning Comprehensively Deepening the Reform, pointing out that it is necessary to "improve the multi-layer capital market system and promote reform toward a registration-based stock-issuing system”, which is also the first time that the Chinese government explicitly proposed to promote the reform toward a registration-based stock-issuing system. Since then, China has entered the period of exploring the registration-based system but does not make smooth progress. In the first instance of the draft amendment to the Securities Law in 2015, it was mentioned that the registration-based system implemented by the Issuance Appraisal Committee should be canceled; in the second draft of the Securities Law in 2017, the registration-based system was also not mentioned; In February 2018, the Standing Committee of the National People's Congress decided to extend the authorization of registration-based system reform for two years. Due to such reasons as the mismatch between the delisting system of listed companies and the registration-based system and the incompleteness of investor protection mechanism, the registration-based system in China's capital market sees its implementation slowed down again and again.