Abstract The relationship between the rise and fall of A-shares and the number of IPOs issuance. I am afraid that no one can say clearly. There is a habit in the Chinese stock market: once the stock market falls, everyone will habitually blame the IPO. Recently, the A-shares have been adjusted in the past few days, and the IPO is slowing down in the market.
There is a big relationship between the rise and fall of A-shares and the number of IPOs issued. I am afraid that no one can say clearly. There is a habit in the Chinese stock market: once the stock market falls, everyone will habitually blame the IPO. Recently, the adjustment of A-shares in the past few days, the market slowed down IPO issuance and even suspended IPO. There are many arguments about the IPO issuance and even the suspension of IPOs. It is questioned that the normalization of new shares has dragged down the index. All kinds of identities and opinions are available. Investors are refreshed and have emotions. The venting channel seems to have stopped the IPO stock market and will rise.
However, there are also some opinions that good regulators should make the market form a stable expectation. The IPO issuance rhythm is related to the market's ups and downs but it is not decisive. There is no need to suspend the IPO. After all, under the normal IPO issuance, A shares have risen and fallen. As long as the quality of the IPO entry is strictly controlled to ensure that the delisting is normalized, the market will naturally adjust according to the IPO release rhythm. The current stock index decline is a pain caused by economic restructuring, de-bubble and de-leveraging. However, if the market fluctuates drastically, from the perspective of ensuring stable market operation and boosting market confidence, the IPO rhythm and Fine-tune the scale to avoid the risk.
The speed of the issuance of new shares
The voice of the IPO is fluctuating with the rise and fall of the stock index. When the A shares are red, the voice of the IPO normalization is blamed. However, if the A shares are green, the investors’ doubts about the IPO will be one after another. Among them, many professionals are included.
Xie Rongxing, the former vice president of Junan Securities, said that the pace of new share issuance has obviously accelerated, which is more than the full-market, registered and capital-rich US stock market. The total market value of China's A-share market has shrunk dramatically, and individual stocks have fallen below the price of the stock market. As the majority of small and medium-sized investors who support the stock market, the property is even more bloody. Compared with the eight-year bull market in the US stock market, Chinese investors are often frightened. Because the stock market crash is normal, is the US economy stronger than China for eight consecutive years? Management must reflect on it.
Market source Han Zhiguo also issued a number of Weibo, calling for a substantial reduction in the number of new IPOs. He suggested that it is imperative to push down the three major policies: immediately stop the artificial suppression of individual stocks and sectors; significantly reduce the number of IPOs of new shares; and introduce new rules for non-reduction of short-term as soon as possible. At the same time of palliative treatment, we will speed up the repair of securities laws and criminal laws, severely crack down on financial fraud, establish and improve the delisting system, class litigation system and damage compensation system, and provide strong legal protection to investors, especially small and medium investors. This will regain market confidence and form an internal mechanism of uninvited funds.
Data says this year's IPO
Let us take a look at the real situation of the IPOs issued by these professionals.
According to the statistics of Chinese journalists, this year, the CSRC issued a total of 18 batches of IPO approvals, giving 188 new shares approvals, with a total financing of about 97.6 billion yuan. A batch of new shares per week became the norm, with 10-11 basics at a time.
In fact, in order to alleviate the impact of new shares on the market, the CSRC has guided the issuance scale and the number of issuances. The amount of funds raised by each company has been reduced to the maximum extent. At the same time, it is strictly prevented from being listed on the disease, through on-site inspection and The review will focus on the way of financial quality and reduce the adoption rate of IPO.
As of May 25, the audit committee reviewed a total of 226 enterprises' initial applications, of which 184 were approved for the first time, 26 were not passed, 4 were cancelled, and 7 were suspended. The attendance rate was about 81.4%, lower than last year. In the same period, the passing rate of 94.81% was also lower than the passing rate of 92.28% and 91.21% of the IPO in 2015 and 2016 respectively.
It is worth noting that this does not include enterprises that have actively withdrawn IPO applications. It is understood that 44 companies have been actively withdrawn this year. That is to say, the actual veto rate generated through the review mechanism is much higher than the veto rate.
It can be seen that the CSRC has done a lot of work in strictly reviewing IPO enterprises, adjusting the scale of new share financing, and stabilizing market expectations.
What are the down factors?
Since the IPO approvals were issued 10 times a week from the beginning of the year, why are investors now worried about the normalization of new shares? The main reason is the recent decline in the stock market.
Can you completely blame the stock market decline on IPO? In fact, it is not entirely true. The factors affecting stock market volatility include not only the data fluctuations at the macroeconomic level, but also the fluctuations in the interest rate of funds, including the admission of funds, etc., in the context of the de-leverage of the entire financial system. The stock market has withstood some pressure. If the stock market decline is directly attributed to the IPO normalization issue, how can the A-shares turn over during the half-year period when the IPO is issued 10 times a week? How do you say the redness of each index today?
Of course, it is arbitrarily determined that stock market adjustment has nothing to do with IPO, and it is also a manifestation of disregard of the facts. The supply of IPOs has increased, the sub-new stocks have indeed adjusted, the space of shell resources has been further compressed, and the overall decline of ST stocks has been influential. It also has an impact on individual stocks and the broader market. In addition, Chinese investors naturally have fears about new stock issues, and new stocks are normalized. Issues, the psychological level of investors is affected.
"This is the only way for the capital market to mature. It is impossible to suspend the IPO." Dong Dengxin, director of the Institute of Financial Securities of Wuhan University of Science and Technology, believes that every time the stock market crashes, the CSRC will adopt an administrative order and close one. Level market; once the stock market is good, the SFC will order "restart IPO". In doing so, it is not only the direct regulation and excessive intervention of the government on the rise and fall of the stock market, but also the more serious and worse consequences: it has formed strong market expectations and excessive dependence.
As long as the stock market crashes, investors will force the SFC to "suspend the IPO" in unison. Otherwise, it will threaten, defame, and carry out personal attacks. Even if they understand that after shutting down the primary market, the stock market will still fail, but they can deceive themselves, masturbate, and legally kidnap the regulatory layer. However, once the primary market is closed, if the “IPO†is to be “restartedâ€, the SFC will be shocked and stunned. If it does not know when to “restart the IPOâ€, it will not be opposed by the shareholders.
Dong Dengxin said that “suspension of IPO†is the first and final sing of the A-share market. The cessation of closing the primary market is a typical excessive administrative intervention. In fact, the government will not rashly close the primary market in any stock market in the world, whether it is a developed market or a backward market.
Market participants pointed out that in order to prevent the risk of “disposal riskâ€, from the perspective of ensuring stable market operation and boosting market confidence, the IPO rhythm and scale can be fine-tuned according to market development to avoid risk. It does not mean that regulation is relaxed or turned. In this process, the market needs to form a stable expectation, which will not only strengthen the constraints, but also direct market behavior to compliance, and will not let the market expectation disorder, and even ups and downs.
Strict examination, IPO strict quality control
For the speed of IPO issuance, it is difficult to distinguish between high and low. However, it is clear that for the IPO review, the regulatory authorities have spared no effort in strictly controlling the quality. The CSRC does not want to speed up and lower the threshold for IPO issuance. On this basis, the regulatory authorities have introduced measures including The combination of punishment and punishment will prevent enterprises from “taking the diseaseâ€.
The IPO on-site inspection work includes three types of enterprises, namely, the enterprises that are drawn in the lottery of the first-time enterprises; the IPO enterprises in the poverty-stricken areas; and the enterprises that need to conduct on-site inspections in daily audits. The focus of the on-site inspection is the authenticity of the financial data.
Relevant people close to the regulatory level said that the strictness of the on-site inspection has received positive feedback:
On the one hand, the application for new shares has not been reported in previous years. According to management, April is the peak period for new shares. This year, this situation has not occurred. It can be seen that issuers and intermediaries pay more attention to the quality of declarations and become more cautious. ;
On the other hand, the market has increased the predictability of regulatory tightening. The proposed issuer pays more attention to the quality control of the audit. After the CSRC strengthens information disclosure and increases accountability and punishment, the intermediary cares more about the brand and reputation. After all, If the practice is not in place or there is a major fault, the operation, business and development of the intermediate institutions will be greatly affected. Intermediaries will pay more attention to the quality of practice and brand building than ever before.
Up to now, 11 listed companies have applied for the withdrawal of new stock application materials during the on-site inspection process. The above-mentioned persons pointed out that the application for withdrawal has included a significant decline in performance due to unfavorable operating conditions, including industry factors. There are also problems in the company's own business risks, accounting and normative aspects. At the same time, there are also acts of whitewashing performance in the process of auditing through related party transactions and adjustment of profit means. The performance cannot truly reflect the profitability, etc. In addition, Some companies have withdrawn their applications due to their own litigation, case risks, and strategic adjustments.
It is worth noting that as of May 25, the passing rate of the review meeting in May has declined. 57 companies have been listed, 8 have been rejected, 3 have been canceled, and 1 has been suspended. The pass rate is only 78.9%. .
In the past week alone, there were four companies including Puyuan Information Technology Co., Ltd., Sichuan Gangtong Medical Equipment Group Co., Ltd., Handan Shuanghuan Electronics Group Co., Ltd., and Harbin Chenglin Technology Co., Ltd. From the perspective of the reasons for the failure, it is mainly related to the rationality of financial data and corporate compliance.
Taking Harbin Chenglin Technology Co., Ltd. as an example, the main issues of the audit committee focused on the rationality of the substantial increase in technical service revenue in 2016. The proportion of installation services and maintenance services in the service period during the reporting period, and The relationship between annual after-sales service fee and service income; the gross profit margin of the issuer providing technical services is relatively high, mainly based on various design drawings and plans that have been developed and formed, and the expenses in the research and development process are already in the current expenses. Chemical. The sponsor representative shall state whether the issuer's accounting treatment of technical service income and cost complies with the matching principle in the accounting standards, and explains the verification process and verification conclusions regarding the authenticity of the service income.
Coincidentally, Sichuan Gangtong Medical Equipment Group Co., Ltd. also fell in the rationality of financial data. The audit committee asked the actual controller to control the establishment of the enterprise related to the issuer's business rationality; the issuer and Shenkang gas The reasons, necessity and commercial rationality of the funds exchange, whether the relevant review procedures have been fulfilled, the reasons for the subsequent ratification and their authenticity and legal compliance, and the proportion of accounts receivable at the end of the reporting period to the proportion of operating income has increased year by year. The reason for the overdue accounts receivable and the corresponding customer situation, the reasons for the provision for bad debts of the overdue accounts receivable and the reasonableness of the bad debts.
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