Recently, a number of well-known experts in the A** field have expressed their views and proposed to suspend the IPO, which has aroused the market's attention to the current capital market. Experts pointed out that the current market adjustment pressure is increasing, the regulatory environment is becoming stricter, and the quality of IPO companies is uneven, which brings greater risks to the market.
Many experts believe that the current market is in a period of adjustment, and investor sentiment is relatively sluggish. Under such circumstances, the issuance of new shares often faces greater market pressure. Some companies with poor quality may choose to go public at this time in order to obtain higher valuations. This will not only hurt the interests of investors, but also have a negative impact on the market as a whole.
The tightening regulatory environment is also a big reason why experts are recommending a moratorium on IPOs. As regulatory scrutiny of corporate IPOs has become more stringent, many companies have been forced to terminate their listing plans because they are unable to meet higher standards and requirements. To a certain extent, this helps to improve the overall quality of the market, but at the same time, it also brings trouble to some companies that really have development potential.
Experts also pointed out that the uneven quality of IPO companies is also a problem facing the current market. Some companies over-package themselves in order to go public, resulting in inflated valuations and difficult performance to support stock prices. This not only increases the risk in the market, but also harms the interests of investors.
The market reacted mixed to the experts' recommendations. Some investors expressed support, believing that the suspension of IPOs would help the market adjust and stabilize; Other investors have reservations, believing that the suspension of IPOs may affect the normal functioning of the market and the financing needs of companies.
In 2023, 286 IPO companies will be terminated
In 2023, the global capital market has experienced unprecedented volatility, and China's A** market is no exception. During the year, a total of 286 companies voluntarily terminated their IPO plans, a record number in recent years.
It is understood that most of these companies terminated their IPOs because during the review process, the regulator found that there were problems with their financial status, business model or corporate governance. At the same time, the drastic changes in the market environment have also caused some companies to worry about future earnings expectations, and then choose to terminate their listing plans.
It is worth mentioning that the stricter scrutiny by regulators has played a key role in this trend. In order to protect the interests of investors and maintain market order, the regulatory authorities have put forward higher requirements for financial transparency, compliance and corporate governance of enterprises. As a result, some companies that found problems during the review or were unable to meet regulatory requirements had to choose to terminate their IPOs.
Regarding this phenomenon, industry experts said that although the termination of IPOs may bring some short-term market fluctuations, in the long run, it is conducive to improving the quality of the entire capital market and protecting the interests of investors. At the same time, it is a reminder that other companies considering going public need to pay more attention to their own compliance and governance structures in order to cope with a more stringent regulatory environment.
The termination of IPOs by 286 companies in 2023 reflects the dual pressure of market adjustment and stricter regulation. This is both a challenge and an opportunity for businesses, and only those with the true strength and compliance will be able to succeed in the market of the future.
The supervision of IPO over-raised funds should be strengthened
With the rapid development of China's capital market, the phenomenon of IPO over-offering is becoming more and more common. However, the use and management of over-raised funds have also come to the fore, bringing potential risks to investors and the market. Therefore, the regulatory authorities should strengthen the supervision of IPO over-raised funds to protect the interests of investors and promote the healthy development of the market.
There are certain problems with the use of IPO over-raised funds. In the capital market, enterprises raise funds through IPOs to expand investment in reproduction, R&D and innovation, and marketing. However, some companies have experienced the phenomenon of over-funding, that is, raising funds more than actual needs. This not only leads to idle and wasted funds, but also can trigger the risk of blind expansion and overinvestment.
Some companies even use over-raised funds for non-core business areas, or make inefficient investments, harming the interests of investors.
Second, the lack of supervision of IPO over-raised funds also brings risks to the market. In order to achieve the purpose of listing, some companies over-package their performance and future development prospects to attract investors.
This behavior can lead to the abuse of over-raised funds and the creation of market bubbles. In view of the above problems, effective measures should be taken to strengthen the supervision of IPO over-raised funds. Strictly review the listing application of the enterprise, and evaluate its actual capital needs and the scale of funds raised. Enterprises that are over-raised should be required to formulate a reasonable plan for the use of funds, and strengthen the supervision and inspection of the use of funds. At the same time, the supervision of corporate information disclosure should be strengthened, and enterprises should be required to fully disclose the specific use and risk factors of the raised funds.
Establish a sound system of laws and regulations to regulate the IPO behavior and use of funds. Enterprises that abuse over-raised funds and engage in fraudulent listings should be severely punished in accordance with the law to maintain the fairness and order of the market. At the same time, investor education should be strengthened, investors' risk awareness and judgment ability should be improved, and their rational investment should be guided.
Regulators and market parties work together to promote the healthy development of the capital market. On the one hand, the supervision and training of intermediaries should be strengthened to improve their professionalism and professional ethics; On the other hand, enterprises should be encouraged to establish a sound internal control mechanism and financial management system to improve their standard operation level.
Strengthening the supervision of IPO over-raised funds is of great significance to protect the interests of investors and promote the healthy development of the market. Practical and effective measures should be taken to strengthen the review and supervision of IPO over-raised funds and the construction of laws and regulations, so as to escort the healthy development of the capital market.
The normalization of A-share delisting is the trend of the times
A few days ago, market analysts generally believe that the normalized delisting of A-shares has become the general trend. Behind this trend is the inevitable result of the continuous and in-depth reform of the capital market, and it is also a vivid embodiment of the mechanism of survival of the fittest in the market.
For a long time, the delisting system of the A** market is not perfect, the delisting standard is relatively single, and the delisting procedure is cumbersome, resulting in some poor performance enterprises occupying market resources for a long time, which seriously affects the healthy development of the market. However, with the continuous improvement of regulatory policies and profound changes in the market environment, the normalized delisting of A-shares has become an inevitable choice for market development.
Normalized delisting helps to purify the market environment. In the case of imperfect delisting system, some companies with poor performance and even serious financial problems have been able to exist in the market for a long time, which not only distorts the market's first-class discovery function, but also brings huge risks to investors. Through the normalization of delisting, these companies will lose their listing status, thereby releasing valuable market resources and providing more development space for high-quality enterprises.
Regular delisting helps protect the interests of investors. On the one hand, the imperfection of the delisting system has allowed some loss-making enterprises and suspected of violating laws and regulations to survive in the market, which not only damages the interests of investors, but also seriously affects the credibility of the market. On the other hand, the normalization of delisting will prompt investors to be more cautious about investment, reduce blind follow-up and excessive speculation, and thus reduce investment risks.
In addition, the normalization of delisting is also an important part of the capital market reform. With the full implementation of the registration system and the acceleration of the pace of opening up of the capital market, the ecology of the A** market is undergoing profound changes. Normalized delisting will help improve the entry and exit mechanism of the market, further optimize the efficiency of resource allocation, and enhance the international competitiveness of the market.
Of course, normalized delisting is not an overnight process. In the process of promoting normalized delisting, it is necessary to fully consider the affordability of the market and the legitimate rights and interests of investors. Therefore, the regulatory authorities should establish a sound supporting mechanism for delisting, improve investor protection measures, and ensure the smooth implementation of the delisting system.
The normalization of A-share delisting has become an inevitable trend and is the inevitable result of the reform and development of the capital market. Through the implementation of normalized delisting, it will help purify the market environment, protect the interests of investors, and enhance the international competitiveness of the market.