From February 18 to 19, the China Securities Regulatory Commission held a series of symposiums to listen to opinions and suggestions, and the participants suggested that IPO access should be strictly controlled. In recent years, the regulatory authorities have strictly controlled IPO access, and the IPO cancellation rate has remained high. According to the statistics of the Shanghai and Shenzhen North Stock Exchanges, as of February 20 this year, 46 companies' listing applications have been terminated, of which 1 has been rejected and 45 have voluntarily withdrawn orders.
According to the reporter's understanding, in order to improve the quality of listed companies from the source, in the next step, the China Securities Regulatory Commission will focus more on strictly controlling IPO access, further increase the supervision and inspection of enterprises to be listed, and vigorously rectify financial fraud.
Market participants believe that to further tighten the IPO access and attract truly high-growth, high-tech enterprises to go public, it is necessary to strike hard at enterprises listed for the purpose of "collecting money" and "cashing out", and at the same time increase the punishment of intermediaries involved in the case, protect the legitimate rights and interests of small and medium-sized investors, and boost market confidence.
Strictly control the quality of IPOs.
On February 20, after three rounds of inquiries, Senda Electric's listing on the Beijing Stock Exchange was terminated. So far, 46 companies have terminated their listing applications during the year. Among the 46 companies, 11, 7, 11 and 17 plan to be listed on the main boards of Shanghai and Shenzhen, the Science and Technology Innovation Board, the Growth Enterprise Market and the Beijing Stock Exchange. Among them, Zhejiang Shenghuabo Electric Appliance Co., Ltd. *** hereinafter referred to as "Shenghuabo") due to insufficient effectiveness of internal control and other issues, the Shanghai ** Exchange (hereinafter referred to as the "Shanghai Stock Exchange") terminated its application for listing on the main board of the Shanghai Stock Exchange.
From the perspective of cancelled orders and rejected enterprises, most of them have problems in information disclosure, the effectiveness of the implementation of the internal control system, accounting treatment, and sector positioning. Zhou Li, president of Shenzhen Elephant Investment Holding Group, said in an interview with the reporter that from the point of view of the inquiry, the recently withdrawn enterprises mainly have problems in gross profit margin, performance, information disclosure, research and development, etc.
In Shenghuabo's decision to terminate the listing review, the SSE said that the listing review center focused on matters such as corporate governance and the effectiveness of internal control, customers and revenues, related parties and related party transactions, and accounts receivable and cash flow in the review and inquiry. The Listing Committee considered that the issuer's failure to demonstrate that its internal control system was sound and effectively implemented in accordance with the application documents, and that the financial statements fairly reflected the issuer's financial position, results of operations and cash flows in all material respects were not in compliance with the relevant requirements of the Listing Rules.
Authoritative data show that among the more than 1,000 enterprises that have completed the trial of the pilot registration system for more than 5 years, the proportion of withdrawal and veto is nearly 40%.
"Passing through the level with illness" cannot be "withdrawn".
For enterprises that "break through with illness", the regulatory authorities adhere to the concept of "declaration is responsibility", and cannot "withdraw it". For those suspected of major violations of laws and regulations, even if the issuer and intermediary withdraw the application for issuance and listing, the regulatory authorities must investigate to the end.
On February 4, the China Securities Regulatory Commission (CSRC) said that it would seriously investigate and deal with five cases of submitting false financial data at the issuance declaration stage, one of which was the fraudulent issuance case of Silchip. Since the implementation of the new law, the Silxin case is the first fraudulent issuance case investigated and handled by the CSRC after the issuer submits the application materials but before it is registered.
Market participants believe that this case sends a strong signal that "breaking through with illness" cannot be "withdrawn", which is of great significance for shaping a standardized, transparent and predictable issuance and listing process.
Wu Xiaoqiu, dean of the National Institute of Financial Research of the Chinese People's University, said in an interview with the reporter that with the serious investigation and punishment of the regulatory authorities on "breaking through with illness", "declaration is responsibility" will be further implemented.
According to the statistics of the Shanghai and Shenzhen North Stock Exchanges, as of February 20, the Shanghai and Shenzhen North Stock Exchanges have accepted a total of 661 companies under review.
Zhou Li said that in fact, the China Securities Regulatory Commission has always carried out an all-round "zero tolerance" crackdown on fraudulent issuance, and resolutely blocked the issuance and listing of "passing through the customs with illness". It is believed that the follow-up A-share IPO will continue to emphasize information disclosure as the core, and the whole process of issuance and listing will be more standardized, transparent and predictable.
Strengthen the control of the whole chain of IPOs.
In the future, IPO supervision will be further upgraded to strengthen the control of the whole chain of issuance and listing review and supervision. According to the reporter's understanding, the China Securities Regulatory Commission is evaluating and summarizing the practice of issuance supervision in recent years, focusing more on strictly controlling IPO access, improving the quality of listed companies from the source, and studying and improving relevant policy mechanisms. The focus is to give more prominence to the control of the whole chain of issuance and listing review and supervision. The China Securities Regulatory Commission, stock exchanges, and dispatched agencies will strengthen the supervision of issuance and listing, and consolidate the first responsibility of issuers and the "gatekeeper" responsibilities of intermediaries.
Tian Xuan, deputy dean of the PBC School of Finance of Tsinghua University, told the reporter that it is necessary to strictly control the IPO access and attract truly high-growth, high-tech enterprises to go public.
How to measure whether unprofitable high-tech enterprises have the ability to operate sustainably is an important issue. Wu Xiaoqiu suggested that the fifth listing rule of the Science and Technology Innovation Board should be further revised and improved.
Wu Xiaoqiu said that in the future, the punishment for violations of laws and regulations of intermediaries should also be increased, and for serious violations, the qualification of sponsor representatives should be revoked, and huge fines should be imposed on intermediaries, and sponsorship and underwriting business should be suspended.
Tian Xuan also believes that it is necessary to continue to tighten and consolidate the responsibilities of intermediaries, especially the individuals involved in intermediaries, and establish a punishment system with a more lasting deterrent effect than warnings and fines, such as establishing a punishment method for the relevant personnel involved to be banned from entering the market for life or even criminalized, and more stringent accountability of the signing lawyers, certified public accountants, and sponsors involved in the case, so as to cut off the possibility of dereliction of duty by intermediaries from the source.
Strengthen all-round and three-dimensional accountability, enhance investor confidence, and at the same time enable more high-quality companies to stand out. Zhou Li said that for some enterprises with low quality and even impure motives, which are listed with illness for the purpose of "collecting money" and "cashing out", we must crack down hard and strengthen the protection of the legitimate rights and interests of small and medium-sized investors.
Editor-in-charge: Ren Haopeng |Review: Li Zhen |Supervisor: Wan Junwei.