Focus On Capital Market Equity Financing "Resumption Of Work": The Key Step Is Dragged Down By Progress, Regulation And Market Seize The "Lost Time".

Second weeks after the opening of A shares, the infection of the new crown pneumonia is still continuing. Although most parts of the country are beginning to work hard to get back to work, there is always a lot of challenges facing the special stage of the epidemic prevention and control.

Among them, equity financing in the capital market will suffer a lot. Some market participants believe that the progress of equity financing of IPO enterprises, listed companies and new third board enterprises will be extended in all directions before the outbreak of the epidemic has not yet been lifted.

On the other hand, regulators are also trying to overcome the inconvenience brought by the epidemic to the financing business, and seize the lost time.

In 2019, under the influence of the comprehensive deepening reform of the SFC, the equity financing environment has greatly improved. The market expects that the overall scale of equity financing will rebound in 2020, but at present, affected by the epidemic, the scale of equity financing is doubtful.

Omni directional delay

"The project that department co ordination can push ahead will certainly be given priority, but the promotion of a lot of work has encountered varying degrees of trouble, such as the financial data of enterprises can not be in place, members of the project team can not travel, and even some employees are still in the stage of self isolation after returning home." A large brokerage firm in Beijing said.

Open the SFC's official website, you can also find that the time of the IPO trial and the merger and reorganization review has been in January 17th, and when the initial IPO and merger and reorganization audits are still not known.

IPO declaration has also been greatly affected. Since the end of the Spring Festival holiday, only three enterprises have completed pre disclosure updates in the SFC, namely, Xinxiang Ruifeng new material Limited by Share Ltd, Shanghai de Bi cultural and creative industries development group (Group) Limited by Share Ltd and Huzhou bank Limited by Share Ltd.

After communicating with a number of investment bankers, the reporter learned that the most direct impact on equity financing business is two core factors, that is, audit can not be in place without financial data, and travel inconvenience, can not be on-site interviews or make adjustments.

"Now, affected by the epidemic, auditing of many projects can not be carried out, and many other agencies are going to different places in the enterprises. They need to travel by means of transportation, and they can not avoid interviews or meetings at the same time, which will be affected by the epidemic. From the situation of resuming this week, it is very difficult for other areas to restore the order of work before the epidemic is serious. In addition, even if the epidemic is over, the financial data and the interview need to be filled. This is also the time cost. Therefore, the overall progress of all projects this year will be postponed. A Beijing state securities broker senior Bao Dai told reporters.

Judging from the current situation, many market participants expect that the scale of direct financing in the capital market will directly reflect the impact of the epidemic in the next 3-6 months, and whether the total scale of the year will exceed the previous year will be called a question mark.

"In the context of the continuous reform of the securities and Futures Commission, the market expectations of equity financing scale rebound in 2020 are clear, but now the overall progress of the primary market will be delayed by the epidemic. As the financing data is lagging behind, the scale effect will be directly reflected in the two or three quarter, and it is hoped that regulators can further introduce measures to protect the market.

Supervision gives maximum convenience.

According to the reporter, regulators also understand the difficulties of the current financing of the epidemic, as far as possible to introduce policies to hedge the impact of the epidemic on the intermediary business.

The first is to give the maximum degree of grace to all kinds of administrative licensing, approval and the validity of financial data. For example, the SFC issued the Department last week to inform the agencies about the time limit for the response time of the issuer's feedback, the time limit for the reply to the letter, the time limit for the final review period after the expiration of the financial statements, and the time limit for issuing the audits, as well as the validity period of the refinancing approvals issued. All calculations are postponed.

In addition, since the opening of the market, there are still a number of projects passed the regulatory audit to advance rapidly. According to the reporter's understanding, this kind of project has common characteristics. First, the basic work is completed before the Spring Festival, and no longer waiting for the audit to enter the field or the results of on-site interviews to prepare materials. Another feature is that the regulatory authorities try not to allow the audit to stop.

Beijing, a large brokerage investment bank department and reporters, said that before the festival, some projects had just completed the first round of disclosure, and the listed companies were anxious to push forward the relevant progress. Because of the epidemic situation, the project team was worried that the progress of the work would slow down at the level of feedback from regulators. After all, it was also affected by the epidemic situation to some extent and could not start normally.

In this regard, reporters learned that the exchange is also trying to overcome difficulties and promote related businesses. Such as the Shenzhen Stock Exchange, the reorganization plan review group meeting will be moved to the online meeting. A reorganization call will be held to discuss the plan of Jinyu car city. The SME Board will communicate with Taixin new material scheme through the conference participants' e-mail expression, and the GEM board will hold a video conference to discuss Yitong technology.

On the above items, the exchange completed the examination and discussion of the above reorganization plan within 5 trading days after the plan was disclosed, and promptly formed and feedback the examination opinions to the company.

In addition to the utmost support from regulators, an important topic for securities companies in recent years is how to get the time back in the future.

The former Beijing state securities broker told reporters: "now leaders are demanding to start sorting out the situation of the project affected by the epidemic, and make an executable sorting work so as to facilitate the project to better promote the project. In addition, it is to transfer some work that does not have to be carried out offline. Recently, we have discussed with all the recent customer interviews with the lawyers of the securities company. We have done a good job of keeping records and leaving traces, and trying to restore the right order of work.

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