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The Reform Of The Registration System On The Growth Enterprise Market Has Opened A Big Era Of Equity Financing. The Scale Of IPO Financing In 2020 Is 2.9 Times That Of The Previous Year

2020/12/29 11:29:00 0

Gem Registration SystemReformEquityFinancingBig EraIPOFundraisingScale

The year 2020 is on the countdown.

As of December 28, the gem index rose 58.10% in the year.

Looking back this year, benefited from the proper prevention and control of the epidemic situation and the influence of macro policies, in addition to the busy bull stocks and "double base", the capital market ushered in a round of major reform measures -- the gem reform and the smooth implementation of the pilot registration system.

Up to now, the number of IPO accepting enterprises under the gem registration system has exceeded 507, with a total number of 61 listed enterprises, raising a total of 64.813 billion yuan; 263 merger and acquisition enterprises have been accepted, of which 121 enterprises have been registered; 15 enterprises have been accepted for merger and reorganization, and 5 enterprises have been registered and effective.

"For the A-share stock market, the reform of the registration system on the growth enterprise market is a milestone event, which will certainly usher in a new era of respecting the market, advocating value, openness and fairness. Value investment is the key to create a slow bull pattern in China's capital market. The comprehensive reform of registration system can enable the market to choose investment targets and better serve the real economy; it can also price companies according to the fundamentals, so that investors can no longer speculate, no longer be super new and no longer follow the market; it can also encourage the development of private equity capital, and can better improve the quality of companies to be listed. " Tian Lihui, Dean of the Institute of financial development of Nankai University, pointed out in an interview.

With the smooth implementation of the gem registration system, the A-share market ushered in the "big era" of equity financing. Visual China

61 new registered companies added to gem

With the smooth implementation of the gem registration system, the A-share market ushered in the "big era" of equity financing.

According to the 21st century economic report, since this year, the total number of enterprises listed on the gem has exceeded 103, with a total amount of raised funds of 87.421 billion yuan, which is 2.9 times of the scale of fund-raising in 2019 (30.121 billion yuan). Specifically, 61 registered listed enterprises and 42 approved listed enterprises have raised 64.813 billion yuan and 22.608 billion yuan respectively. In addition, as of December 28, five enterprises have completed online issuance, raising a total of 2.632 billion yuan.

In terms of industry distribution, this year's listing (including the enterprises that have completed the issuance) mainly come from the new generation of information technology manufacturing industry. Among them, there are 16 enterprises in the manufacturing industry of computer, communication and other electronic equipment, ranking first, followed by 10 enterprises in the special equipment manufacturing industry, and only 8 enterprises in the electrical machinery and equipment manufacturing industry, ranking third. Software and information technology service industry, chemical raw materials and chemical products manufacturing industry had 7 enterprises respectively, ranking fourth.

In terms of distribution area, traditional strong IPO areas such as Pearl River Delta and Yangtze River Delta are still the "main force" of gem listing. There are 20, 19 and 16 enterprises listed in Guangdong, Zhejiang and Jiangsu respectively, and Beijing ranks fourth with 9 listed companies. In addition, the "rising stars" in Anhui, Shandong and Henan provinces have also accelerated the pace of catching up, with 7 and 5 respectively 5 enterprises were listed.

The trend of gem registration system also brings "catching up opportunities" for many small and medium-sized sponsors. The reporter noted that among the companies listed on the gem this year, Guojin securities beat down the large securities companies such as CICC and China Securities construction investment, and became the biggest winner of this year's gem IPO with the performance of 8 enterprises listed. CICC and Everbright Securities respectively recommended 7 enterprises to be listed, and 6 enterprises of China Construction Investment and Dongxing securities were listed respectively.

It is worth mentioning that with the smooth progress of the registration system, intermediary agencies will continue to benefit from the feast of "making wealth".

As of December 28, there were more than 400 IPO applications in gem. Among them, 81 enterprises have passed the meeting, 27 enterprises have submitted registration applications, 214 enterprises have been inquired, and 58 enterprises have been newly accepted.

From the current situation of declaration, the enterprises applying for listing on GEM are still mainly continuous profit-making enterprises. Among the enterprises under normal audit status, 397 enterprises have adopted the first set of listing standards that "the net profit in the last two years is positive and the cumulative amount is no less than 50 million yuan", accounting for more than 96%.

13 enterprises, such as Maipu medical, Sinotech, and thinking creation, have adopted the second set of listing standards on the gem, "the market value is expected to be no less than 1 billion yuan, the net profit in the latest year is positive, and the operating income is not less than 100 million yuan.". Due to the special voting right arrangement, Meiyou selected the special equity structure enterprise listing standard of "the expected market value is not less than 5 billion yuan, the net profit of the latest year is positive and the operating income is not less than 500 million yuan".

"Set up diversified and inclusive listing conditions, set up multiple listing standards considering the expected market value, income, net profit, R & D investment, cash flow and other factors, do not require enterprises to make profits before listing, and allow enterprises with special equity structure and red chip enterprises to go public. These listing conditions will greatly stimulate the business enthusiasm of innovative and growing enterprises around the company, and make the industrial chain ecology of the company more dynamic. " An executive of a technology listed company in South China said in an interview.

Refinancing blowout

It is worth mentioning that the implementation of the registration system reform of the gem in 2020 is not only reflected in the differentiated issuance and listing system, but also in the refinancing registration system, the gem reform also further optimizes the issuance conditions and other institutional arrangements, and introduces a small amount of rapid financing limit, including the application of simple procedures, from 50 million yuan and no more than 10% of net assets to 300 million yuan and no more than 20% of net assets In order to meet the investment and financing needs of different preferences, and to improve the supply of capital market.

In addition, the re financing audit and registration procedures have been greatly optimized, with a substantial reduction in the audit and registration period. The review time limit for the general refinancing procedure is 2 months, and the time limit for the summary procedure is 3 working days. The financing efficiency is greatly improved.

Specifically, since the implementation of the new refinancing policy, as of December 28, a total of 263 listed companies under the gem registration system have received the acceptance of the Shenzhen stock exchange for issuing shares to specific objects, of which 129 enterprises have been registered and 27 are submitting for registration.

In September this year, the first small amount rapid financing case on GEM, Qianyuan pharmaceutical fixed increase project, was approved by the CSRC. It took only nine days from the acceptance of the application on September 8 to the effective registration. In the view of many industry insiders, the small amount fast refinancing mechanism of gem is one of the important measures of the registration system reform of gem, which is conducive to solve the financing difficulties and high financing problems of small and medium-sized companies with market value.

"In this process, the company fully realized the high efficiency of market-oriented equity financing under the registration system. It took only 8 working days from the company's application to the registration to take effect, which greatly shortened the audit time and cycle of the company's financing, so that the company can get the required funds in a short time, and lay a foundation for the implementation of financing projects as soon as possible." Zhao Qun, chairman of Qianyuan pharmaceutical, said in an interview.

With the smooth implementation of the registration system, the scale of refinancing on the gem this year has also reached a new high. Wind data shows that up to now, 76 enterprises in gem have implemented the private placement scheme, with a total fund-raising scale of 82.162 billion yuan, an increase of 43.80% compared with the same period in 2019.

In addition, 57 enterprises completed the issuance of convertible bonds, raising funds as high as 35.259 billion yuan, a year-on-year increase of 271.34%. Seven bonds were issued, with a total of 3.535 billion yuan raised, which was basically the same as last year.

According to the incomplete statistics of the 21st century economic report, up to now, there are nearly 70 enterprises in the gem that issue convertible bonds to unspecified objects. Among them, more than 50 enterprises have benefited from the cancellation of the issuance conditions of "the asset liability ratio at the end of the latest period is not less than 45%", and the total planned financing is more than 45 billion yuan.

Wanfu bio has a typical asset liability ratio of only 16.42% at the end of 2019. After the reform, it launched the financing scheme of issuing convertible bonds to unspecified objects. It plans to raise 600 million yuan to be used for industrialization construction of chemiluminescence technology platform, research and development of molecular diagnosis platform, etc., so as to expand the company's advantages in the field of Potc (on-site real-time detection), which has been awarded by the CSRC The company has registered and completed the issuance of convertible bonds, and Wanfu convertible bonds have been listed on Shenzhen Stock Exchange on September 23;

In addition, lens technology has launched a financing plan to issue shares to specific objects after the reform, and plans to raise 15 billion yuan, which will be used for the construction of intelligent wearable and touch function panel, the construction of vehicle mounted glass and large-scale functional panel, the construction of 3D touch function panel and production supporting facilities, and industrial Internet industrial application, so as to further enhance its main business advantages. The project was launched on October 9 It has been registered and approved by the SFC.

Overall, the financing enthusiasm of GEM listed companies this year has increased significantly compared with last year. According to authoritative data, from January to October 2020, the GEM listed companies disclosed 318 refinancing plans, with a total planned financing amount of 348.5 billion yuan, 4.18 times and 5.98 times of the same period last year; 63 refinancing schemes were implemented with a total financing amount of 67.4 billion yuan, 1.80 times and 2.92 times of the same period last year.

More than 15 mergers and acquisitions have been accepted

In terms of merger and reorganization, the registration system reform of GEM has also brought greater convenience. Previously, Shenzhen Stock Exchange has made it clear that the industry to which the target asset belongs should conform to the gem positioning, or be in the same industry or upstream and downstream with the company. It not only emphasizes that M & A should conform to the gem positioning, but also fully considers the industrial integration and transformation of existing enterprises through M & A The requirement of upgrading.

In addition, the Shenzhen Stock Exchange also lowered the base price of shares to purchase assets from 90% of the market reference price to 80%, providing a more flexible interest game mechanism for both sides of the restructuring transaction; the upper limit of the issuance of matching financing for restructuring was raised from 20% of the total share capital before the issuance to 30%, enhancing the direct financing ability, and supporting the GEM listed companies to use merger and acquisition tools for industrial integration and upgrading Quality and efficiency, transformation and upgrading.

Wind data shows that in 2020, as of December 28, there are 31 merger and reorganization plans disclosed by gem for the first time, including 25 plans for industry integration in the same industry. Some enterprises use M & A tools to integrate their industries and expand their production capacity and industrial chain influence.

For example, in June 2020, Aier ophthalmology completed the merger and acquisition of 100% equity of Tianjin zhongshixin, 100% equity of aolide optometry and 80% equity of Xuancheng ophthalmic hospital, and the industrial layout of Aier ophthalmic hospital will reach the next city. In addition, some enterprises use the advantages of gem system to realize transformation and upgrading. The target of M & A involves electronic communication, information technology, new energy batteries and other fields, which closely fits with the gem positioning.

Under the registration system, as of December 28, the Shenzhen Stock Exchange has accepted a total of 15 applications for merger and reorganization of listed companies on the gem. Five have been registered and effective, one has submitted for registration, one has been approved by the Shanghai Municipal People's Congress, three have been inquired about, and one has been accepted.

On September 30, 2020, the China Securities Regulatory Commission (CSRC) approved truking technology's application for restructuring registration, which also became the first major asset restructuring case in the gem registration system.

It is understood that from July 9 when truking technology applied to the final registration, it took only 92 days to review the registration and reply to inquiries. Excluding the time for companies and intermediaries to reply to inquiries, it took only 31 days for Shenzhen Stock Exchange to review and the CSRC.

In addition, gem small rapid restructuring has been a taste. In October this year, CSCI and Minsheng securities respectively issued special verification opinions meeting the requirements of "small amount fast" audit to torse and design and Research Institute.

"The implementation of the registration system reform of Shenzhen Stock Exchange has opened a more inclusive and open reform process, and has taken a gratifying first step. In the past three decades, both the Shenzhen Stock Exchange and the Shanghai Stock Exchange have stuck to the traditional practice, and are not inclusive and open enough. Inclusiveness and openness mainly refer to the artificially controlled pace of reform. Is it a start now, or should we accelerate the reform process? " Dong Dengxin, Professor of Wuhan University of science and technology, pointed out in an interview.

 

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The Reform Of The Registration System On The Growth Enterprise Market Has Opened A Big Era Of Equity Financing. The Scale Of IPO Financing In 2020 Is 2.9 Times That Of The Previous Year

With the smooth implementation of the gem registration system, the A-share market ushered in the "big era" of equity financing.