Lao Sha: Forced To Take The Lead In Issuing New Shares.

Although the pace of IPO has reached a very fast pace, the issuance of 8 around a week has become normal, but it is still unable to resolve the overhanging IPO dammed lake. As of October 13, 2016, the SFC accepted 838 enterprises, of which 83 had been passed, and 755 had not yet been sold.

702 enterprises that normally fail to be heard in the enterprise have not been passed, and 53 enterprises have been discontinued.

However, with the approval of IPO issued by 14 enterprises in October 14th, the number of enterprises has dropped to 69, and the pressure of issuing new shares is huge. Compared with the continuous flow of new shares, the delisting system seems to be still in the same place as the stock market of the stock market keeps expanding rapidly. This year, it is only three or two. This is more than the scale of 100 million new shares.

Compared with the US stock market, the author thinks that it has entered a dead end which is difficult to resolve. That is the new shares barrier lake. The withdrawal of the problem stocks is seriously obstructed. The market metabolism function is extremely deficient, the new can not enter, the old can not go out and become a stagnant water.

On the one hand, there is no barrier lake in the US stock market, and many high-tech companies have also withdrawn or delayed issuing new shares automatically. Although the author did not refer to the changes in the US market delisting companies and IPO this year, there is a data showing the change of us IPO and delisting system from side to side, and the number of listed companies is still less than that of the delisting companies.

According to Wall Street, the number of Listed Companies in the US stock market has dropped to the lowest in 32 years. "There are only 3267 stocks in the database of University of Chicago's securities price research center (CRSP), the lowest since 1984."

Quoted Jefferies senior stock analyst Steven DeSanctis's report.

At the same time, 33% of the small cap stocks in the US stock market further reduced the proportion of tradable shares, significantly higher than in previous years, and only 20% of the small cap stocks in the past were cut.

Therefore, the US market should never worry about the disconnection between the new market capitalization and the new funds, and it can always maintain the benign relationship between the new market capitalization and the new capital, and China always worries about the impact of the new stock issue on the market trend.

Therefore, the market has always had some conflict with the new shares, and the management is also trembling with fear.

As a capital market,

The cost of increasing restrictions and increasing market value is the low level of the two market. Therefore, a delisting system is needed to balance the total market value, eliminate those companies that can not generate wealth, and eliminate those companies that do not act as a rule. Just like a pool, there is no water outlet. Only when the water intake is opened, the water in the pool will soon overflow. So is the stock market. There is a lack of the delisting system. The market value of the whole market will increase too fast, and the market will not be able to match with the new capital. The stock market will fall and passively accept the new stock financing. This will easily lead to the market's conflicting emotions, and there will be a criticism of the financing. It is natural that it is also the fresh blood of market development. Can capital market be called capital market?

Moreover, the delisting system is missing, the shell resources are prevalent, the value discovery function is lost, the resources are seriously mismatched, the market valuation is in disorder, and some big blue chip stocks have been seriously underestimated, while the bad performance stocks have been seriously overvalued for a long time, and the market speculation is prevailing.

It is not compatible with mature market investment habits, making internationalization more diversified.

As far as the construction of the delisting system is concerned, management can not be ignored. Many rules and regulations have also been promulgated. The 108th section of the securities law also gives the Shanghai stock exchange the same functions and powers. The 108 rule is that the stock exchange shall handle the issues of suspension, listing and termination of stock and corporate bonds in accordance with the provisions of laws and administrative regulations. The six opinions on the reform and improvement of the listing system of listed companies (six) provide for the suspension of listing of major information disclosure companies.

Due to the existence of false records, misleading statements or major omissions in the information disclosure documents, the administrative punishment of the SFC, and because of the bad nature of the illegal act, serious circumstances, and great market impact, are found to constitute a major violation of the law in the written decision on administrative penalty. If the offence of illegal disclosure or non disclosure of important information is pferred to the public security organ in accordance with the law, the stock exchange shall make a decision to suspend the listing of its shares in accordance with the law.

However, the delisting system in China is a soft egg and can not be hard to rise. Since Narcissus became the first delisting company, after decades of development, China's stock market delisting companies are still less than 90. Compared with the current 3000 companies, the delisting rate is less than 3%. Meanwhile, in the United States, from 1995 to 2012, all 3052 companies in New York stock exchange were delisted, and 7975 companies in Nasdaq were delisted.

From 2003 to 2007, the New York stock exchange had an average annual delisting rate of 6%, about 1/2 was the active delisting, and the NASDAQ average annual delisting rate was 8%, and the active delisting accounted for nearly 2/3.

There are 2234 listed companies in the NYSE. From 1995 to 2012, a total of about 3052 companies in the NYSE delisting, the market value of the delisting companies exceeded 3 trillion, while the market value of the new listed companies was only 1 trillion and 300 billion during the same period, and the market value of the delisting was 2.5 times the market value of the new listed companies. This "withdrawal of the fittest" system is the fundamental reason for the efficient operation of the US stock market and the long term bull market.

The reasons are very complicated. Among them, the law enforcement personnel are not strict in law enforcement. There are also too many laws and regulations, which are too rigid to give law enforcement officers too much discretion.

Some commentaries pointed out that "people who have contacted the delisting companies are clear that a company's delisting is equivalent to a small earthquake.

The interest groups that breed on the shell resources chain are intertwined. There are local governments, big shareholders, early ambushes, and even ordinary retail investors who are eager to protect their shells. Once they are ready to withdraw from the market according to the process, all kinds of voices will rise and fall. There will be a lot of voices calling for injustice. They will be able to pport the rescue workers and threaten to commit suicide.

It is not the reformers who do not understand the market, but the reformers who are not realistic. "

However, no matter what causes, the consequences of the delisting are very serious. The implementation of registration system, even if it does not implement the registration system to speed up the IPO, also means that there must be a normal delisting mechanism.

Everyone knows that there is no serious problem of delisting system, so how to deal with those corpse companies and how to deal with those companies that are constantly refusing to change. I think the first thing is to further refine the relevant rules of delisting, reduce discretionary power, and deduct non normal profits and losses from financial delisting. At present, some companies use assets disposal, government subsidies and financial maneuver to avoid the three consecutive years of loss and delisting provisions, allowing companies to linger in capital markets and seek opportunities to buy shells.

Second is to stop the cross-border mergers and acquisitions of loss companies, a company's main business is in a mess, and it can also do a good job in the sideline industry which does not have a boundary with its main business. From many mergers and acquisitions cases, cross-border M & A results are very unsatisfactory, which is often a kind of flicker, a waste of valuable financial resources, and easy to generate profit pmission and entrap investors.

Three, some companies are constantly breaking the rules and constantly breaking the rules, but there is no way for the management to do so. They can only constantly warn, send warning letters and letters of concern, and experience three times that regulators should belong to those who fail to reform and enforce mandatory delisting.