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Financial reporter Zhang Tingwang
After a lapse of three months, the review of A-share IPOs has resumed.
On the evening of May 10, the Shenzhen Stock Exchange issued an announcement on the review meeting of the Listing Committee, and the 9th review meeting of the Listing Committee is scheduled to be held on May 16 to review the initial listing application of "Marco Polo".
Image source: Shenzhen Stock Exchange
It is worth noting that the last listing committee review meeting of the Shenzhen Stock Exchange was on February 7 this year, and since then, no IPO company has been reviewed by the listing committee for three consecutive months.
Will this be a signal for the resumption of normal review of A-share IPOs?
A-share IPO review restarted
The IPO meeting on May 16 has attracted much attention from the market, mainly because the last IPO meeting was held on February 7, three months ago, which is the longest interval since the implementation of the registration system.
Moreover, it is also the first listing committee review meeting launched by the Shanghai and Shenzhen Stock Exchanges after the implementation of the new "National Nine Articles" series of supporting new regulations.
In addition, the Shanghai Stock Exchange also issued an announcement on the same day that the Listing Committee deliberated on the same day, planning to review the refinancing applications of one Shanghai Stock Exchange on May 16, which is a convertible bond project of Baolong Technology. The project was accepted by the Shanghai Stock Exchange in August last year, and the first round of inquiry responses was completed in November of the same year.
Image source: Shanghai Stock Exchange
In fact, since August last year, the A-share IPO ecology has changed.
On August 27, 2023, the China Securities Regulatory Commission (CSRC) issued the "CSRC Co-ordinates the Balance of the Primary and Secondary Markets and Optimizes the Regulatory Arrangements for IPOs and Refinancing", pointing out that the pace of IPOs will be tightened in stages to promote the dynamic balance between investment and financing. Guide listed companies to reasonably determine the scale of refinancing, and strictly implement the requirements for financing intervals.
Since then, the regulator has continued to release strict regulatory signals.
For example, on March 15, 2024, the China Securities Regulatory Commission (CSRC) issued the "Opinions on Strictly Controlling the Access to Issuance and Listing and Improving the Quality of Listed Companies from the Source (Trial)", which requires strict control of the declaration quality of enterprises to be listed, consolidate the "gatekeeper" responsibility of intermediaries, highlight the main responsibility of the exchange for review, strengthen the local supervision responsibility of the CSRC's dispatched agencies, and improve the whole-chain supervision and accountability system.
In the context of strict supervision, the number of projects submitted to the Listing Committee for review has decreased. Since 2024, only 25 IPO companies have announced the meeting, of which 2 companies have been cancelled before the meeting, and 23 companies will actually meet. Including: 8 on the Shanghai Stock Exchange, 6 on the Shenzhen Stock Exchange, and 9 on the Beijing Stock Exchange.
485 companies are waiting to be cleared
In fact, not only the number of companies in the meeting has decreased, but many companies have also terminated their IPOs one after another. According to data from the Shanghai and Shenzhen North Stock Exchanges, since August 27, 2023, a total of 268 companies have terminated their IPOs. Among them, 118 are on the Shenzhen Stock Exchange, 89 are on the Shanghai Stock Exchange, and 61 are on the Beijing Stock Exchange.
The recent termination of the Shenzhen Stock Exchange IPO project Image source: Shenzhen Stock Exchange
As for the resumption of the IPO and refinancing review, some analysts said that the China Securities Regulatory Commission and the stock exchange have recently issued the "1+N" supporting system rules for the capital market, and after the specific system is improved, there are clearer standards for the smooth promotion of the issuance and listing review.
On April 12, the State Council issued the "Several Opinions on Strengthening Supervision and Risk Prevention and Promoting the High-quality Development of the Capital Market" (also known as the "National Nine Articles"), and the China Securities Regulatory Commission (CSRC) has formulated a number of supporting policy documents to form a "1+N" policy system for the capital market.
On April 30, the Shenzhen Stock Exchange and the Shanghai Stock Exchange respectively issued revised business rules such as the Stock Listing Rules and the Stock Issuance and Listing Review Rules to further clarify the positioning and listing requirements of each sector.
According to statistics, there are still 485 companies waiting to queue up to break through (excluding companies that have passed the listing committee meeting, submitted for registration, and registered to take effect), and the resumption of IPO review has also injected a shot in the arm for these companies in the IPO queue.
According to the data on the official website of the Shanghai and Shenzhen North Stock Exchanges, as of May 13, 2024, a total of 226 companies on the Shenzhen Stock Exchange are waiting for review, of which 8 have been inquired and 218 have been temporarily suspended due to the update of financial reports; A total of 168 companies on the Shanghai Stock Exchange are waiting to be reviewed, of which 2 have been accepted, 12 have been inquired, and 154 have been temporarily suspended due to the update of financial reports; A total of 91 companies on the Beijing Stock Exchange are waiting for review, of which 1 has been accepted, 37 have been inquired, and 53 have been temporarily suspended due to the update of financial reports.
From the perspective of the listed sector, the GEM IPO queue has the most companies, with 157, followed by 94 on the main board of the Shanghai Stock Exchange. There are 91 on the Beijing Stock Exchange, 74 on the Science and Technology Innovation Board, and 69 on the main boards of the Shenzhen Stock Exchange.
At present, the era of strict supervision of the whole process of IPO has arrived, and the regulators have strengthened the control of the whole chain, severely punished financial fraud and fraudulent issuance, and the proportion of on-site inspections of companies to be listed has also increased significantly. For companies planning to IPO, only by doing a good job in operation and seeking truth from facts is the key to whether they can successfully "break through".