Original title: Shenzhen Stock Exchange strengthens the post-event supervision of the annual report of the bond market: high risk factors such as deposits and loans become the focus of review
After the implementation of the new securities law in 2020, the reform of the corporate bond registration system was officially launched and operated smoothly. This is an important milestone in the reform and development of the exchange bond market.
According to data from the Shenzhen Stock Exchange: In 2020, the scale of the issuance of bonds and asset-backed securities on the Shenzhen Stock Exchange increased by 36% year-on-year, and the proportion of corporate bond AAA issuance increased from 51% to 64%. Green, dual innovation, renewable, epidemic prevention and control The scale of issuance of innovative bonds such as housing leasing was nearly 226.7 billion yuan.
Debt levels are generally stable
The 2020 annual report is also the first annual report disclosed by a bond issuer in accordance with the requirements of the new securities law. As of April 30, 2021, a total of 630 bond issuers and 436 asset-backed special plans in Shenzhen have disclosed their 2020 annual reports, and the disclosure rate has increased year-on-year.
According to the review results of the 2020 annual report, the quality of information disclosure by issuers or special plan managers has generally improved compared with previous years. The major risks disclosed in previous annual reports have not been disclosed in place, and regular reports have been used to replace temporary reports.announcementDisclosure of major issues, undisclosed differences in the ratings of the same entity in different markets, incomplete financial analysis or mere formal disclosure, and insufficient disclosure of special terms for innovative products, etc. have been significantly reduced.
The Shenzhen Stock Exchange found that most of the issuer’s fund-raising accounts are dedicated to special accounts, the raised funds are used according to the agreed purpose or the purpose is changed to perform procedures and compliance, corporate governance and internal control are in compliance with relevant regulations, and the issuer’s standard operation level is good.
In terms of the quality of bond issuers, in 2020, bond issuers on the Shenzhen Stock Exchange will intensively cultivate their main businesses as a whole, with asset scale and profitability continuing to grow, and debt levels generally stable.
As of December 31, 2020, the total assets of bond issuers on the Shenzhen Stock Exchange increased by 10% from the end of the previous year, with an average asset-liability ratio of 61%.Operating income, Attributable to the owner of the parent companyNet profitThe year-on-year growth both exceeded 8%. Among them, over 60% of issuers achieved positive revenue growth, and over 50% of issuers achieved positive profit growth; average cash from operating activitiesNet inflowBasically the same as the previous year, the average net cash inflow from financing activities increased substantially, an increase of 74% over the same period last year.
Four types of audit focus
The Shenzhen Stock Exchange stated that this year’s annual report review work focused on key points and targeted, more focused on the subject’s solvency and cash flow status of underlying assets, combined with the overall debt solvency risk characteristics classified supervision, precise policy implementation, and effectively enhance the foresight of supervision.
One is to pay attention to the impact of non-standard audit opinions on debt solvency. In the disclosed 2020 bond annual report, a total of 25 issuers have been issued non-standard unqualified audit reports.
From the perspective of non-standard audit reports, the issuer’s annual report was issued due to substantial losses, overdue debts, pending litigation, receivables recovery, impairment provision or inadequate audit evidence of asset acquisitions, and limited audit scope. Non-standard audit opinions.
Based on the nature and scope of the issues reflected in the audit report, the Shenzhen Stock Exchange promptly initiated risk investigations, through inquiries, to further understand the impact on the company’s ability to continue operations and debt solvency, and to conduct risk classification supervision.
The second is to pay attention to the rationality of debt scale, structure, maturity and changes. According to daily supervision experience, it is required for companies with higher debt leverage than the same industry, rapid debt growth and greater short-term debt repayment pressure, or companies with smaller assets, debt-to-asset ratios exceeding a reasonable level, and weaker debt solvency. The company specifically explained the year-on-year changes in full-caliber interest-bearing liabilities, categories, maturity structure, reasons for debt growth, and whether there were overdue debts.
At the same time, strengthen the protection of large-scale enterprises with long-term bonds, weak-qualified enterprises,real estateMonitoring and risk research and judgment of the overall debt financing of companies and other types of companies.
The third is to pay attention to the debt repayment risks of issuers such as “high deposits and loans”, “profits are highly dependent on non-recurring gains and losses,” and “weak mothers and strong sons”.For issuers of “double high deposits and loans”, clarification is requiredcurrencyThe authenticity of funds and whether there are rights defects, to prevent suspected inflated funds or concealed funds restrictions.
If the issuer’s funds are centralized and managed by the group finance company, it is required to explain the specific arrangements for the collection and withdrawal of funds, the ability to freely dispose of funds, and whether there are restrictions on the scope of use, etc.
For issuers whose core business profits continue to decline, or profits are highly dependent on non-recurring gains and losses such as asset disposal, changes in fair value or government subsidies, it is required to explain the countermeasures for the decline in main business profits and the stability and sustainability of non-recurring gains and losses And its impact on debt solvency.
For the “weak mothers and strong sons” investment holding enterprises, it is required to indicate the cash of the subsidiariesDividendsThe continuity and volatility of the company, the profitability of other businesses of the parent company, and the holding of core subsidiariesEquity pledgeProportion and so on.
The fourth is to pay attention to behaviors such as failure of corporate governance, failure to fulfill promises, and suspected “debt evasion”.For the issuer frequently to the holdingshareholderOr its related partiesBorrowFunds or guarantees for its financing, disputes and litigation between shareholders or between the company and its subsidiaries, etc., require a full explanation of whether it violates the relevant provisions of the prospectus, the recoverability of the borrowed funds, and the impact on the issuer’s solvency.
Regarding the promises stipulated in the prospectus that no new non-operating fund lending, leverage ratio restrictions, etc., may affect the solvency, focus on implementation and strengthen the protection of investors’ rights and interests.For the existence of large assetsPledge, In the case of foreign investment, equity or asset transfer, etc., pay attention to whether there are violations of information disclosure, malicious transfer of assets, and “debt evasion”.
Fifth, pay attention to the impact of the epidemic on the cash flow of some basic assets.Affected by the epidemic, part of 2020highwayThere is a certain degree of decline in the cash flow of future operating income and real estate asset securitization products such as fees, scenic spot tickets, and hotels, which may affect the normal income distribution of the special plan.
In this regard, the Shenzhen Stock Exchange requires plan managers to fully disclose the cash flow of the underlying assets and the operation of specific original stakeholders, pay close attention to the difference between the actual cash flow of the underlying assets and the predicted cash flow during the reporting period, and focus on whether the cash flow is in accordance with the agreement of the special plan Collect on time and in full, and investigate and deal with the potential risks of the special plan.
(Source: China Business News)
(Editor in charge: DF398)
Solemnly declare: The purpose of this information is to spread more information, and it has nothing to do with this stand.
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