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Through The Key Verification Of Power! Over Half Of The Enterprises Were Forced To Retreat From Fishing In Troubled Waters

2021/2/24 6:27:00 0

FocusSceneEnterpriseFish In Troubled WatersLarge Area

Less than a month after the on-site inspection was opened, more than half of the enterprises have played a "retreat drum" on the way to the market.

On January 31, the China Securities Regulatory Commission (CSRC) released the latest round of spot checks on the quality of information disclosure of first-time enterprises. A total of 20 enterprises "won the lottery". The CSRC will inspect the quality of information disclosure and the practice quality of intermediary agencies.

As of February 23, less than a month after the above inspection, 11 companies under examination announced that they had voluntarily withdrawn their listing application materials and terminated the IPO review, with a termination ratio of 55%. This has something to do with the penetrating inspection of enterprises by the regulatory authorities.

Wang Jiyue, a senior investment banker, said that when enterprises are inspected or supervised on the spot, they are often found to have doubts in the supervision during the audit, or the quality of their own listing application materials is not good enough, so they choose to withdraw the application materials to terminate the audit. On the other hand, there may also be the situation that the manuscript work is not in place and the intermediary agency chooses to withdraw the application for supplementary information.

"The main reason is that after the mid-term of last year, there were a lot of IPO reporting companies. The qualified companies would pass the IPO first, and those with poor quality would be left behind. When the examination reached a certain stage, they would retreat. Under the registration system, the pace of audit and issuance is fast. It is normal for companies that fish in troubled waters to make up for the number of companies. The regulatory authorities find that it is responsible for the market to persuade or force them to withdraw. " Wang Jiyue said.

On site inspection, the enterprises were evacuated

On January 29, China Securities Regulatory Commission (CSRC) officially issued the regulations on on on-site inspection of initial enterprises. From the content point of view, the new regulations specify the basic requirements, standards, procedures and follow-up work of the first-episode enterprises' on-site inspection, and also provides rules for the on-site inspection work previously classified as window guidance.

The 20 listed companies mentioned above are the first batch of samples selected by the regulatory authorities for on-site inspection after the release of the regulations on on on site inspection of initial enterprises.

"IPO on-site inspection will generally check out some problems, but it is relatively rare for enterprises to withdraw materials on a large scale like this recently." There are domestic small and medium-sized securities investment banks related responsible person said.

Compared with the first batch of on-site inspection in 2019, a total of 9 enterprises applied for withdrawal of application materials, accounting for 20.4%. More than half of the 20 selected companies withdrew the material review.

"According to the new regulations on on on-site inspection, the regulatory authorities will adopt random sampling and problem-based methods to confirm the inspection objects. I understand that the list published this time is not a complete random inspection, and some controversial enterprises are also included." Have Beijing area medium-sized securities firm investment bank personnel said.

For example, cloud Zhisheng, a star enterprise that has attracted market attention, withdrew its application materials only three and a half months after submitting its IPO application.

On February 23, the 21st century economic reporter called the company repeatedly to inquire about the reasons for the termination of IPO, but none of them answered.

According to the 21st century economic report, most of the listed companies that have withdrawn their IPO applications this year have many problems, such as insufficient core competitiveness, doubtful financial data authenticity, single customer dependence, lack of sustainable operation ability, etc., and even some enterprises are referred to as "declaration with diseases".

The more typical example is papaya mobile, which changes the listing path four times in five years. Earlier, papaya mobile also submitted a prospectus to the science and Technology Innovation Board of Shanghai Stock Exchange, but on July 4, 2019, papaya mobile and its sponsor submitted an application for withdrawal of IPO. At that time, the Shanghai Stock Exchange had focused on the advanced core technology of papaya mobile, whether it could be effectively transformed into operating results, the accuracy of industry positioning and classification, the ability of sustainable operation and information disclosure.

In 2020, papaya mobile will submit listing application to Shenzhen Stock Exchange gem. However, it was also questioned by Shenzhen Stock Exchange on the company's supplier dependence, business model, business description, business process, competitive advantage and core competitiveness, controlling shareholders and actual controllers, customer stickiness and other issues. Finally, after two rounds of inquiry in Shenzhen Stock Exchange, in February 2020, papaya mobile chose to withdraw its IPO application.

It is worth mentioning that, according to the provisions of "Regulations on site inspection of first batch enterprises", enterprises that withdraw their applications within 10 working days after being informed of on-site inspection will not carry out on-site inspection.

This also led to the on-site inspection, many enterprises were directly informed by the relevant inspection "scared away". According to the statistics of 21st century economic report, a total of six enterprises choose to withdraw their listing applications within 10 working days after being informed of on-site inspection, so as to avoid being subject to on-site inspection. One of them intends to be listed on the science and technology innovation board, while the other five companies belong to the growth enterprise market.

During the year, 45 companies to be listed took the initiative to stop

This on-the-spot inspection has triggered a wave of IPO termination audit in the year of the ox.

According to wind statistics, in less than two months since the beginning of the year, the number of IPO termination audit companies, including the above listed companies which have been stopped due to the on-site inspection, has reached 45, including 27 on the gem, 14 on the science and technology innovation board, and 4 on the main board and small and medium-sized board. Under the registration system, the enterprises to be listed have chosen to withdraw their application materials voluntarily. In contrast, the number of successful entrepreneurs in the A-share market during the same period was only 38.

However, some people from securities firms and investment banks said that the withdrawal of listing application materials and termination of audit by a number of enterprises did not come from the tightening of audit standards by the regulatory authorities, but that there were problems in the quality of enterprises themselves.

"250 trading days a year, a total of 5600 companies can be listed on the stock market. There are a limited number of high-quality unlisted companies. Among the nearly 1000 companies lining up, there must be unqualified ones, some have been withdrawn or not, which is normal. There are more queues, which means that there are more people to make up for others, and the intensity of on-site inspection will be increased. " There are senior investment banks in East China said.

On the other hand, although the regulatory authorities have formed the "Regulations on on on-site inspection of first-time enterprises", the identification of the diligence and due diligence of intermediary agencies such as securities companies is still not very clear, which also aggravates the frequent withdrawal of applications by the enterprises to be listed.

"In fact, it is very easy to find out the problems during on-site inspection, especially for securities companies. The "end" of due diligence is actually endless. You can't prove that you have done it all in place. The securities companies naturally do not want to be punished, so it is more wise to choose to withdraw the declaration materials. In any case, it is a business and can continue to do it in the future. " The senior investment bank said.

The investment bank said that relatively speaking, the quality of the proposed listed companies, regulatory standards will be relaxed. And the quality of ordinary and even poor companies, naturally can not be released at will, "more questions will be asked, and even dare not face on-site inspection, withdraw materials to terminate the audit, securities investment banks still have to choose a good company."

On site inspection to tighten the implication

It is worth mentioning that the on-site inspection is often regarded as an important tool to supervise and clean up the barrier lake.

Prior to this, some investment banks close to the regulatory level pointed out to the 21st century economic report that the on-site inspection is often considered to alleviate the problem of excessive concentration or excessive number of queuing enterprises.

According to wind data statistics, as of February 23, 267 enterprises have passed the examination and approval of the national development and examination commission or the Municipal Committee of the stock exchange, but still have not been approved and registered by the CSRC, of which 210 belong to the science and technology innovation board and the growth enterprise market under the registration system. In addition, there are 2230 enterprises in the whole market who are in the process of guidance and registration, serving as the "reserve force" of IPO.

"Counseling and acceptance can be tightened, but more than 2000 counseling enterprises will not bring too much impact. The number of IPO materials applied for each year is still limited. Securities companies do not report all kinds of companies, and companies with poor quality will find reasons to delay." Wang Jiyue said.

As for the enterprises that have applied for IPO, the above-mentioned senior investment banks pointed out that the CSRC proposed "improving the evaluation criteria of science and technology innovation attribute" this year. For enterprises seeking to be listed on the science and technology innovation board in the future, their scientific and technological innovation attribute recognition may be tightened, "at least in the face of so many queuing enterprises, the standard will not be relaxed."

"In contrast, the growth enterprise market has greater pressure, and there are a lot of queuing companies, and the scientific and technological innovation ability and quality of enterprises are relatively poor. Therefore, in the future, due to the influence of on-site inspection, the number of cases that are ultimately terminated may continue to increase. " The investment bank said.

 

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