Multi-department combination fist rectification of the new stock market “holding group quotes”——
The IPO environment continues to optimize
Our reporter Zhou Lin and Ma Chunyang
As of September 25, with the continuous advancement of the registration system reform, the number of newly listed companies on the Science and Technology Innovation Board and the Growth Enterprise Market this year has reached 273, and the actual IPO funds raised are nearly 200 billion yuan, which is a large gap compared with the expected funds raised. Among them, the amount of IPO funds raised by many companies did not meet expectations. According to industry insiders, due to the “group quotation” of some inquiring institutions, which disrupted the pricing order of new stock issuance, the amount of IPO funds raised by enterprises fell short of expectations, and the investment and financing functions of the capital market were affected.
In response to issues related to the issuance of new stocks such as “Bao Tuan Quotation”, the China Securities Regulatory Commission recently issued the “Decision on Amending the Special Provisions on the Issuance and Underwriting of Initial Public Offerings on the Growth Enterprise Market”. The relevant rules and regulatory systems for the issuance and pricing of new shares on the Stock Exchange and the Growth Enterprise Market are aimed at optimizing the new share issuance environment under registration.
New rules refer to illegal quotations
The amendment to the “Special Provisions” is mainly to adjust the pricing method of new shares issuance on the ChiNext in response to unreasonable phenomena such as “group quotations” that have recently appeared. It involves four aspects: First, the high price elimination ratio is adjusted from no less than 10% to no more than 3%; the second is to cancel the requirement to link the issuance pricing with the subscription schedule and the number of special announcements on investment risks; the third is to strengthen the supervision of price inquiry and quotation behavior, and clarify the regulatory requirements, violations and regulatory measures when offline investors participate in the inquiry, and suspected violations If laws and regulations or the China Securities Regulatory Commission require, report to the China Securities Regulatory Commission for investigation and punishment or the judicial organs shall pursue criminal responsibility according to law; fourthly, it is in line with the revision of the Securities Association of China “Regulations for Underwriting of Initial Public Offerings under the Registration System” and cancels the report that the issue price exceeds the investment price. The range of the valuation interval needs to explain the relevant requirements of the difference.
As a supporting measure, in terms of regulating the underwriting of stocks by securities companies, the Securities Association of China issued the “Regulations for Underwriting of Initial Public Offerings under the Registration System”, “Regulations for the Management of Offline Investors of Initial Public Offerings under the Registration System”, and “Initial Public Offerings under the Registration System” Three industry self-discipline rules are issued in the Guidelines for the Classification, Evaluation and Management of Offline Investors of the Issuance of Stocks.
Among them, on the basis of summarizing and absorbing the relevant practice standards of the underwriting business issued in the sci-tech innovation board and the ChiNext registration system, the “Underwriting Regulations” further strengthens the lead underwriters’ pricing responsibilities, requires the lead underwriters to optimize the roadshow promotion arrangements, and strengthen the securities analysts The role of roadshow promotion helps offline investors to better understand the issuer’s fundamentals, industry-comparable companies, issuers’ earnings forecasts and valuations; the “Offline Investor Management Rules” are listed on the “Science Innovation Board IPOs offline” On the basis of the “Investor Management Rules”, the relevant self-discipline requirements issued in the form of notices are integrated; the “Guidelines for the Classification of Offline Investors” from the dimensions of compliance, professionalism, independence, and prudence of investor quotation behavior , Clarify the criteria for the classification and evaluation of offline investors, and set up four types of lists of concern, exception, restriction and selection lists to strengthen the management of investors, aiming to establish a classification evaluation and management system for offline investors.
In order to cope with the amendments to the “Special Provisions” and industry self-discipline rules, the Shanghai and Shenzhen Stock Exchanges have simultaneously revised corresponding rules, strengthened the supervision of quotation behavior, further clarified the requirements for offline investors to participate in new stock quotation, and included possible violations into the scope of self-regulation. In terms of the connection between the new and the old, the original regulations shall apply if the prospectus and the preliminary inquiry announcement have been published before the issuance of the revised rules, and the issuance work shall be initiated; the new rules shall apply if the issuance work is initiated after the issuance of the rules.
In addition, according to the relevant opinions and suggestions of most market entities, the relevant departments of the Shenzhen Stock Exchange and the Shanghai Stock Exchange have also put forward a number of initiatives: In the initial stage of the adjustment of the rules, the first is that the high price elimination ratio shall not exceed 3% and not less than 1%; the second is the underwriters and issuers. Prudent and reasonable pricing is based on multiple factors; third, offline investors have increased their IPO research efforts and provided objective and professional independent quotations.
Pan Helin, executive dean of the Digital Economy Research Institute of Zhongnan University of Economics and Law, believes that the participation of multiple departments under the registration system is more targeted to improve the new share issuance rules, which is intended to solve the problem of “group quotation” leading to low price of new shares. Among them, the amendment to the “Special Provisions” balances the interests of issuers, underwriting agencies, quotation agencies, and investors, taking into account the fairness and efficiency of the issuance and underwriting process. The adjustment method is mainly in two dimensions: On the one hand, it reduces the quotation restrictions, allows institutions to dare to give reasonable prices, and promotes quotation competition. For example, reducing the high price elimination ratio, canceling the description of the issue price exceeding the valuation of the investment report, canceling the linking of the issue pricing and the number of special announcements on investment risks, etc.; on the other hand, strengthen the supervision and continue to urge the regulatory authorities to quote illegal and obvious illegal quotations. Acts to crack down and punish.
Multi-department combination fist rectification of the new stock market “holding group quotes”——
The IPO environment continues to optimize
Our reporter Zhou Lin and Ma Chunyang
As of September 25, with the continuous advancement of the registration system reform, the number of newly listed companies on the Science and Technology Innovation Board and the Growth Enterprise Market this year has reached 273, and the actual IPO funds raised are nearly 200 billion yuan, which is a large gap compared with the expected funds raised. Among them, the amount of IPO funds raised by many companies did not meet expectations. According to industry insiders, due to the “group quotation” of some inquiring institutions, which disrupted the pricing order of new stock issuance, the amount of IPO funds raised by enterprises fell short of expectations, and the investment and financing functions of the capital market were affected.
In response to issues related to the issuance of new stocks such as “Bao Tuan Quotation”, the China Securities Regulatory Commission recently issued the “Decision on Amending the Special Provisions on the Issuance and Underwriting of Initial Public Offerings on the Growth Enterprise Market”. The relevant rules and regulatory systems for the issuance and pricing of new shares on the Stock Exchange and the Growth Enterprise Market are aimed at optimizing the new share issuance environment under registration.
New rules refer to illegal quotations
The amendment to the “Special Provisions” is mainly to adjust the pricing method of new shares issuance on the ChiNext in response to unreasonable phenomena such as “group quotations” that have recently appeared. It involves four aspects: First, the high price elimination ratio is adjusted from no less than 10% to no more than 3%; the second is to cancel the requirement to link the issuance pricing with the subscription schedule and the number of special announcements on investment risks; the third is to strengthen the supervision of price inquiry and quotation behavior, and clarify the regulatory requirements, violations and regulatory measures when offline investors participate in the inquiry, and suspected violations If laws and regulations or the China Securities Regulatory Commission require, report to the China Securities Regulatory Commission for investigation and punishment or the judicial organs shall pursue criminal responsibility according to law; fourthly, it is in line with the revision of the Securities Association of China “Regulations for Underwriting of Initial Public Offerings under the Registration System” and cancels the report that the issue price exceeds the investment price. The range of the valuation interval needs to explain the relevant requirements of the difference.
As a supporting measure, in terms of regulating the underwriting of stocks by securities companies, the Securities Association of China issued the “Regulations for Underwriting of Initial Public Offerings under the Registration System”, “Regulations for the Management of Offline Investors of Initial Public Offerings under the Registration System”, and “Initial Public Offerings under the Registration System” Three industry self-discipline rules are issued in the Guidelines for the Classification, Evaluation and Management of Offline Investors of the Issuance of Stocks.
Among them, on the basis of summarizing and absorbing the relevant practice standards of the underwriting business issued in the sci-tech innovation board and the ChiNext registration system, the “Underwriting Regulations” further strengthens the lead underwriters’ pricing responsibilities, requires the lead underwriters to optimize the roadshow promotion arrangements, and strengthen the securities analysts The role of roadshow promotion helps offline investors to better understand the issuer’s fundamentals, industry-comparable companies, issuers’ earnings forecasts and valuations; the “Offline Investor Management Rules” are listed on the “Science Innovation Board IPOs offline” On the basis of the “Investor Management Rules”, the relevant self-discipline requirements issued in the form of notices are integrated; the “Guidelines for the Classification of Offline Investors” from the dimensions of compliance, professionalism, independence, and prudence of investor quotation behavior , Clarify the criteria for the classification and evaluation of offline investors, and set up four types of lists of concern, exception, restriction and selection lists to strengthen the management of investors, aiming to establish a classification evaluation and management system for offline investors.
In order to cope with the amendments to the “Special Provisions” and industry self-discipline rules, the Shanghai and Shenzhen Stock Exchanges have simultaneously revised corresponding rules, strengthened the supervision of quotation behavior, further clarified the requirements for offline investors to participate in new stock quotation, and included possible violations into the scope of self-regulation. In terms of the connection between the new and the old, the original regulations shall apply if the prospectus and the preliminary inquiry announcement have been published before the issuance of the revised rules, and the issuance work shall be initiated; the new rules shall apply if the issuance work is initiated after the issuance of the rules.
In addition, according to the relevant opinions and suggestions of most market entities, the relevant departments of the Shenzhen Stock Exchange and the Shanghai Stock Exchange have also put forward a number of initiatives: In the initial stage of the adjustment of the rules, the first is that the high price elimination ratio shall not exceed 3% and not less than 1%; the second is the underwriters and issuers. Prudent and reasonable pricing is based on multiple factors; third, offline investors have increased their IPO research efforts and provided objective and professional independent quotations.
Pan Helin, executive dean of the Digital Economy Research Institute of Zhongnan University of Economics and Law, believes that the participation of multiple departments under the registration system is more targeted to improve the new share issuance rules, which is intended to solve the problem of “group quotation” leading to low price of new shares. Among them, the amendment to the “Special Provisions” balances the interests of issuers, underwriting agencies, quotation agencies, and investors, taking into account the fairness and efficiency of the issuance and underwriting process. The adjustment method is mainly in two dimensions: On the one hand, it reduces the quotation restrictions, allows institutions to dare to give reasonable prices, and promotes quotation competition. For example, reducing the high price elimination ratio, canceling the description of the issue price exceeding the valuation of the investment report, canceling the linking of the issue pricing and the number of special announcements on investment risks, etc.; on the other hand, strengthen the supervision and continue to urge the regulatory authorities to quote illegal and obvious illegal quotations. Acts to crack down and punish.Return to Sohu to see more
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