Pi Haizhou: Deregulation Of Backdoor Listing For Brokerages

In recent years, the SFC has taken a positive attitude towards the development of securities dealers. In September 19th this year, at the regular press conference held by the SFC, Zhang Xiaojun, a spokesman for the securities and Futures Commission, said that in order to implement the requirements of the "nine new countries" and the SFC's opinions on further promoting the innovation and development of the securities business institutions, the securities and Futures Commission recently issued a general understanding that it encouraged the securities companies to replenish their capital through multiple channels and cleaned up the restrictive provisions for canceling the equity financing of the securities companies. The specific measures include: first, all securities companies should attach importance to capital replenishment and replenish capital through IPO listing, capital raising and stock expansion, so as to ensure that the business scale is compatible with capital strength, and the overall risk situation of the company matches the risk bearing capacity.

The two is to encourage qualified securities companies IPO to go public, cancel the two additional prudential requirements of "strong market competitiveness" and "good growth", and simplify the relevant procedures to improve the efficiency of IPO Listing Supervision submissions.

Three, we should appropriately reduce the requirements for shareholders and trust companies and limited partnership enterprises to hold shares in securities companies with more than 5% shareholding, and will no longer make requests for long-term investment scale of shareholders. The four is to encourage securities companies to retain supplementary capital through profits, and to support securities companies to explore new capital replenishing tools, such as preferred stock, reduced debt, convertible bonds, etc.

However, there are still some problems that need to be addressed and solved in the way of bigger and stronger brokerage firms. After all, it is like the acquisition of Guangdong securities by state securities, the merger of Shen Wan and Hongyuan securities, and the acquisition of national securities by Founder Securities, one of which is the A share listed company itself. For Non-listed Company's securities companies, it is very difficult to make bigger and stronger through the way of listing. Although the SFC encourages qualified securities companies IPO to go public, after all, there are as many as 600 listed companies in the A share market.

Another way to go public -- backdoor listing is still "no way" for brokerages. For example, the major assets of listed companies issued by the SFC in October 24th this year. Recombination The management measures still stipulate that assets purchased by listed companies belong to specific industries such as finance, venture capital and so on, and shall be separately stipulated by the CSRC. This requirement began in August 2011 when the securities and Futures Commission promulgated the decision to amend the relevant provisions of major asset reorganization and matching financing for listed companies. After that, the door of securities companies' backdoor listing remained closed.

about Broker It is necessary to maintain caution in backdoor listing. After all, there have been illegal activities in the history of securities companies' backdoor listing. For example, the Yanbian listed company of GF Securities was listed on the market, and then it was full of trouble in the market. At that time, the brother of Dong Fang Zheng, President of GF Securities, held a large number of shares of Yanbian highway. But even so, such insider trading should be only a matter of market supervision. If the backdoor listing of securities companies is "one size fits all", this is undoubtedly a spillover of water when the baby is spilled out, which is not conducive to the development of brokers, and is inconsistent with the management's support for the purpose of becoming bigger and stronger.

What's more? Backdoor listing Insider trading and other illegal activities are not patents for the backdoor listing of securities companies. They may also exist in other companies' backdoor listing process. The management method of major asset reorganization of listed companies allows other companies to implement backdoor listing in the main board market, but it still does not relax the securities companies' backdoor listing, which is unfair to the securities companies. What's more, the management method of major asset reorganization of listed companies clearly stipulates that the threshold of backdoor listing is equivalent to that of IPO standard. Therefore, loosening the backdoor listing for brokerages is not a concern for securities companies, but a fairness principle. Since support for brokerages is bigger and stronger, and the road to IPO is long, it is necessary to relax the backdoor listing for brokerages. After all, this is an important way for securities companies to achieve bigger and stronger targets.