On the evening of May 10, the Shanghai and Shenzhen stock exchanges both issued announcements of the listing committee review meeting, intending to review the company's application for issuance and listing on May 16. Among them, 1 Shenzhen IPO issuance and listing application was reviewed, and 1 Shanghai stock exchange refinancing application was reviewed.
Since the Spring Festival in 2024, there has been no IPO company in the A-share market for three consecutive months to be reviewed by the Listing Committee. The exchange's most recent listing committee meeting was in early February, which means that there has been no IPO meeting for three months.
In terms of the Shanghai Stock Exchange, the update time for the acceptance of applications for companies to be listed on the stock market is stuck on December 31, 2023. Since the 12th Review Meeting of the Listing Committee in 2024 was held on 5 February 2024, the 13th Review Meeting has not been scheduled for a long time.
In terms of the Shenzhen Stock Exchange, the acceptance update time for new companies will stay on December 29, 2023. The 8th review meeting of the Listing Committee was once scheduled to be held on 7 February 2024, but after the announcement of the review meeting of the Listing Committee, the relevant companies cancelled the review due to the need to verify the relevant review matters, and there has been no new arrangement for the review so far.
On August 27, 2023, the China Securities Regulatory Commission (CSRC) issued the "Regulatory Arrangements for Coordinating the Balance of the Primary and Secondary Markets to Optimize IPO and Refinancing", tightening the pace of IPOs in stages. Since then, the number of companies submitted for registration and obtained registration approvals on the Shanghai and Shenzhen stock exchanges has remained stable overall. At the same time, due to multiple factors, the number of projects submitted to the Listing Committee for review decreased year-on-year.
In the meeting, since 2024, only 25 IPO companies have announced the meeting, of which 2 companies have been cancelled before the meeting, and 23 companies have actually been announced, including 8 on the Shanghai Stock Exchange and 6 on the Shenzhen Stock Exchange. Compared with more than 110 in the same period in 2023, the number of corporate meetings has dropped by nearly eighty.
In terms of fundraising, in April 2024, a total of 5 new A-share stocks were listed on the three markets of Shanghai, Shenzhen and North China, with a total initial offering of 2.705 billion yuan, and the fundraising scale decreased by 54.15% month-on-month and 94.59% year-on-year, refreshing the low level in the past five years; In the first four months, the number of new listings and the scale of funds raised fell by 66% and 77% year-on-year, respectively.
Market participants believe that the meeting of the listing committees held by the Shenzhen and Shanghai exchanges is a concrete embodiment of the implementation of the new regulations on issuance and listing and the continuous and steady promotion of the review of issuance and listing.
On the one hand, the China Securities Regulatory Commission and the stock exchange have recently issued the "1+N" supporting system rules for the capital market, among which the issuance and listing rules have revised the issuance and listing conditions and plate positioning requirements of the main board and the GEM.
On the other hand, most companies in the early stage suspended the review due to the expiration date of the financial information in the IPO application documents, and the reporting companies have successively submitted their financial data for 2023 and entered the resumption review process, and the relevant review work needs to continue to be promoted in accordance with laws and regulations.
According to public statistics, as of May 6, the Shanghai and Shenzhen North Stock Exchanges have announced the termination of review (withdrawal of materials + veto/termination of registration) of 135 enterprises since the beginning of this year. Among them, 133 were voluntarily cancelled, 1 IPO was rejected, and 1 was terminated for failing to eliminate the suspension of the review in a timely manner or submit additional valid documents.
Sources: Shanghai and Shenzhen Stock Exchange Announcements, China Securities Journal, China Fund News, China Business News, etc