Less Than 10 Years Of IPO Approval

On the evening of November 3, ant group, which originally applied to be listed on the science and technology innovation board on November 5, 2020, suspended the listing process of a and H shares.

It is worth mentioning that in the process of ant group promoting the listing of science and technology innovation board, the issuing speed of A-share approval is also slowing down. According to the statistics of 21st century economic report, since September 4, the number of approvals issued by the CSRC every week is single digit. In the period from October 31 to November 3, the CSRC issued only two approvals.

Prior to that, for example, in the week of September 4, the number of IPO approvals issued by the CSRC and the number of IPO companies that agreed to register reached 15. Since the second half of the year, the largest number of IPO approvals issued and allowed to register (July 31), the CSRC approved the IPO applications of 18 enterprises.

At present, it is not known when ant group will restart the listing process, but in the view of many industry insiders, with the postponement of ant listing, the issuance speed of CSRC approval documents may be accelerated, and the audit work of science and Technology Innovation Board will also maintain a stable operation situation.

The pace of listing on the science and technology innovation board slows down

Up to now, the number of enterprises applying for the scientific and technological innovation board has exceeded 471, of which 206 enterprises have registered and listed. Among the remaining enterprises, 23 have submitted for registration, 38 enterprises have passed the examination and approval of the listing committee, 123 have obtained the inquiry of the science and technology innovation board, and only 18 enterprises have accepted the application for feedback.

Judging from the current audit rhythm, the audit work of the science and technology innovation board is being carried out in an orderly manner. However, according to the statistics of the 21st century economic reporter, recently, the listing of enterprises on the science and technology innovation board has slowed down.

According to the public data, since 2020, there have been 116 listed enterprises on the science and technology innovation board, of which 75 enterprises have been listed in the second half of the year (since July), including 27 in July, 22 in August, 18 in September and 8 in October. Up to now, no enterprise has been listed successfully.

Behind this, from the perspective of the whole market, the issuance speed of the CSRC's approval documents has also slowed down significantly. For seven consecutive weeks, the CSRC has approved the issuance of approval documents and allowed the number of registered enterprises to be single digits.

An investment bank in Beijing said in an interview: "there is a certain relationship between the slowing down of approval documents and the promotion of ant listing, but at the same time, there should also be a factor to supplement half of the annual report."

"With the suspension of the listing of ant group, the pace of review of the scientific and technological innovation board and the approval speed of the Securities Regulatory Commission are likely to be faster than those in September and October." Wang Jiyue, a senior investment banker, pointed out in an interview.

According to public information, up to now, 23 enterprises have submitted for registration on the science and technology innovation board, but they have not yet obtained the approval of the CSRC. Among them, the earliest enterprise is Tianneng battery group Co., Ltd. (hereinafter referred to as "Tianneng battery").

Tianneng battery's IPO application was accepted by the Shanghai Stock Exchange on December 30, 2019, and approved by the science and Technology Innovation Board Listing Committee on July 6, 2020. The company submitted its registration application the next day. However, up to now, Tianneng battery has been queuing up for 10 months, but it is still "far away" to knock on the listing door.

Prior to that, Tianneng shares' shareholders' sudden purchase of shares, high asset liability ratio, related party transactions and other issues were focused by the market and the exchange. In addition, in May this year, its parent company tianqianli was attacked by short selling institutions, and was suspected of serious financial fraud.

In addition, after the registration was submitted to the Municipal Committee of the people's Republic of China, it was delayed to pass the registration. According to the statistics of the 21st century economic report, 34 companies on the science and technology innovation board are in the state of going to the municipal Party committee meeting. Among them, 22 enterprises have not submitted for registration for more than half a month.

The largest time span includes Chengdu Jimi Technology Co., Ltd., Jiangsu Kangzhong Digital Medical Technology Co., Ltd., Shanghai haiyouwei New Material Co., Ltd., Geely Automobile Holding Co., Ltd., Hangzhou AGCO Technology Co., Ltd., and Guangdong Jushi Chemical Co., Ltd. the latest update time is September 29, but it has not been submitted for registration.

"According to the procedures, before submitting for registration, the enterprises of the conference still need to reply to the review opinions of the municipal Party Committee on the science and technology innovation board. These questions and the reply situation are different from enterprise to enterprise." South China, a medium-sized securities firm investment banking department, said in an interview.

22 enterprises terminated declaration during the year

In addition to slowing down the audit process of some enterprises, since this year, the science and technology innovation board has also terminated the IPO applications of 22 enterprises, of which 9 were declared in 2020. Huijie (Shanghai) Technology Co., Ltd., with the earliest application time, accepted the application on May 20, 2020, and took the initiative to withdraw materials for less than 3 months from August 10, 2020.

In addition, there have been three cases of IPO termination in the registration stage this year. For example, Bozhong Seiko technology Co., Ltd., its IPO application was accepted on April 21, 2019, and its registration application was submitted on December 19, 2019. However, on April 24, 2020, China Securities Regulatory Commission (CSRC) issued a notice to terminate the registration procedure for issuing shares on the science and technology innovation board and decided to terminate its issuance registration procedure.

The IPO of Chuangxin laser Co., Ltd. in Shenzhen was accepted on April 2, 2019. The IPO of Chuangxin laser Co., Ltd. was held on November 14 of the same year, and Chuangxin laser was submitted for registration on December 27, 2019. But after more than 10 months of waiting, Chuangxin laser withdrew its IPO application on the evening of October 26.

In addition, Tianyi medical, which met on June 10 this year, filed for registration on June 18, but terminated its registration on October 29.

Prior to that, the CSRC issued the regulations on on on-site inspection of first-time enterprises (Draft for Soliciting Opinions). According to the regulations, the determination of inspection objects includes two ways: random sampling and problem-oriented. In principle, if the inspected object withdraws the first application within 10 working days after receiving the written inspection notice from the audit and registration departments, the on-site inspection will not be carried out on the enterprise in principle. However, if the enterprise re applies for domestic IPO within 12 months after withdrawing the application, it shall be listed as the object of examination.

On the evening of November 3, the Shanghai Stock Exchange formulated the three-year action plan to promote the improvement of the quality of listed companies on the Shanghai Stock Exchange, which also pointed out that the construction of the "import side" and "export side" should be deepened. We will further promote the construction of the science and technology innovation board and the reform of the registration system. In accordance with the arrangements of the financial commission of the State Council and the China Securities Regulatory Commission, we will promote the full implementation of the registration system for stock issuance, and ensure the quality of listed companies from the source.

An investment bank person close to the exchange said that since most of the projects knew their own problems in the audit and inquiry process, they chose to give up voluntarily in communication with the regulatory authorities, and the trend of "spontaneous exit" also reflected the market-oriented audit characteristics of the regulatory authorities.