Home » Multi-sectoral rectification of the new stock market holds group quotations, and the environment for new shares issuance continues to optimize | new shares issuance | investors_Sina Technology

Multi-sectoral rectification of the new stock market holds group quotations, and the environment for new shares issuance continues to optimize | new shares issuance | investors_Sina Technology

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Original title: Multi-departmental rectification of the new stock market holds group quotes to continuously optimize the new stock issuance environment Source: Economic Daily

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.

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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.

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Conducive to maintaining market distribution order

IPO listing is an important means for the development of direct financing, but the “group quotation” of inquiry agencies makes it difficult for some companies to go public to achieve the expected fundraising goals, and it also harms the interests of issuers and related investors.

What impact will the new regulations have on the market? Zhou Maohua, an analyst at Everbright Bank, believes that “group quotation” has an adverse effect on the capital market, and pricing distortion in the primary market is not conducive to the market’s function of effective financing for enterprises, and it is also not conducive to protecting the legitimate rights and interests of small and medium investors. The emergence of “Bao Tuan Quotation” is largely affected by the imperfect rules of the issuance pricing mechanism of listed companies. This time, the regulatory authorities have targeted the optimization of pricing mechanism rules and strengthened relevant quotation supervision, which will help curb illegal quotation behavior, maintain the order of primary market issuance, allow market supply and demand sides to fully play games, and promote rational investment in the secondary market.

“Adjusting the highest quotation elimination ratio, adjusting some pricing requirements, and canceling the requirement that the pricing of new shares issuance is linked to subscription arrangements and the number of investor risk special announcements will help optimize the underwriting system for registered new shares issuance, promote a more balanced game between buyers and sellers, and let the market Play a decisive role in the pricing of new stocks and resource allocation.” Zhou Maohua said.

“Inquiry agencies’ behavior of’group quotation’ is a human intervention that distorts market pricing, destroys market fairness, and damages the interests of other investors. In order to maintain market order and fairness, such behavior must be severely cracked down.” Baoxin Financial Chief economist Zheng Lei said that the revised rules have improved the details and opened up the pricing game space, which is conducive to breaking the current quotation pattern and solving the problem of “group quotation”. However, this type of behavior is not easy to be detected, and the supervisory authority still needs to strengthen the supervision and management of all parties involved in the quotation, and severely penalize the offenders in accordance with the regulations, and even pursue their criminal responsibility in accordance with the law, so as to further increase the cost of violations of the speculative quoters.

Pan Helin said that multi-departmental “combination punches” to rectify the “group quotation” behavior in the IPO market under the registration system are mainly based on respecting the market and taking into account efficiency, reducing quotation restrictions rather than guiding quotations. The stock exchange is practicing China should continue to fully implement the policy of “building a system, non-intervention, and zero tolerance”, and promote the rationalization of issuance pricing in a systematic and standardized manner. In the future, the new regulations are expected to promote more standardized pricing of IPOs on the Growth Enterprise Market, and the situation of low prices will be improved.

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Investors should be clear about the risks of new shares

In response to the behavior of “group quotation”, since this year, the Securities Association of China and the Shanghai and Shenzhen Stock Exchanges have conducted special inspections and self-regulation of some investors. After the introduction of the new regulations, what should investors do? Dong Dengxin, director of the Institute of Financial Securities, Wuhan University of Science and Technology, believes that under the registration system, the pricing of new shares will become increasingly market-oriented, and it may no longer be uncommon for new shares to break. The risk of participating in new shares will increase. Ordinary individual investors should be more cautious in participating in new listings and investing in secondary new stocks in the secondary market. Different situations should be considered for different individual stocks, and they should not blindly follow the trend in new stocks. Investors must change their concepts and gradually adapt to the many changes brought about by the market-based pricing rules for new stock issuance.

Pan Hongsheng, chief economist of the China Securities Finance Research Institute, said that in addition to improving the rules, the regulatory authorities should continue to strengthen investor education, strengthen the supervision of quotation institutions, standardize quotation behavior, and focus on strengthening the crackdown on price-setting and other interference with issuance pricing. Strengthen, promptly clear out irresponsible institutions, urge quotation institutions to improve internal control mechanisms, and improve the pertinence of issuance and underwriting supervision.

Tian Lihui, dean of the Institute of Finance of Nankai University, believes that the regulatory authorities issued a number of measures to rectify the “group quotation” is an important system construction content for improving the primary market pricing mechanism. Only by realizing the specialization of the key market entities’ intermediary institutions can it be conducive to the realization of a fair-priced primary market, thereby optimizing resources, and better financing enterprises and serving the real economy. The characteristics of these measures are renewed, meticulous, and pragmatic. Renewed, that is, these measures can be formulated in accordance with the market conditions and revised the previous rules; detailed, that is, these measures are based on specific work details, canceling the number of announcements, cumulative bidding interval and other regulations, and proposing special risk announcements under specific circumstances Requirements; based on the facts, that is, the regulatory authorities, starting from the actual problems in the current primary market, prevent some offline investors from making strategic quotations, and propose measures to solve the problems. These measures try to balance the interests of issuers, underwriters, quotation institutions and investors from the reality, taking into account fairness and efficiency, and balancing the interests of market participants. In the future, both institutional investors and individual investors should abide by market order, invest prudently and invest scientifically, and must not blindly follow the trend and speculate regardless of market risks.

Our reporter Zhou Lin and Ma Chunyang


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