Shenzhen Supervision Fourth Phase Refinancing New Regulations Cited "War Epidemic" Live Water, "Two Constraints" To Achieve Precision Irrigation.

At present, as the mainstay of China's economic development, the current situation of the listed companies is facing new challenges. How to control the epidemic and return to work, how to stabilize production and maintain growth, has brought great challenges to business operators.

According to the economic report in twenty-first Century, although most of the listed companies in Shenzhen stock market have returned to work in varying degrees, the production and operation of listed companies have been affected by factors such as personnel, material supply and sales logistics, and the shortage of epidemic prevention materials. The cash flow of the weaker part of the small and medium-sized enterprises is facing more financial pressure than the two thousand.

On the other hand, in the critical stage of economic shift, the important role played by new economic enterprises during epidemic prevention can not be ignored. The new economic enterprises, represented by telecommuting, online education, biomedicine and cloud computing, give full play to their unique toughness and advantages, showing the tremendous development momentum of the new economy.

As an important economic entity that drives domestic development, the growth of listed companies, especially innovative and small and medium-sized private enterprises, can not stagnate. Development can not shift gears, break the constraints of demand side and production end, and will not wait for me.

If we want to win the war, we need to go ahead first. The capital market is the granary of the listed company that supplements the "blood".

Recently, the new regulation of refinancing issued by the Securities Regulatory Commission has landed the refinancing restrictions on listed companies, especially GEM companies. The A share market ecosystem is rapidly activated, and innovative private enterprises represented by GEM companies overcome the difficulties of operation, supplement operating blood, and continue to grow bigger and stronger.

Fine new deal for the real economic development diversion into the canal path, we can see that the regulatory authorities to encourage development and risk prevention and control two errors, smooth flowing water channel, but also closed the back door of risk.

First of all, we need two ways to get through the source of living water. First, we need to lower the conditions for refinancing and expand the beneficiary groups.

Take the gem which is the most obvious beneficiary as an example. According to the statistics of Tianfeng securities, for the public offering, the old regulation also meets the requirements of the two-year profit and asset liability ratio. After the new regulation abolished the asset liability ratio requirement, 432 eligible gem targets were added. For non-public offering, the new regulation abolished the profit requirements in the recent two years, and increased 199 eligible conditions. The gem target.

The two is to improve the quality of listed companies by issuing rules more marketable.

The new regulation of refinancing has made more market-oriented reforms in terms of issuing conditions, issuing mechanisms and financing scale. It has greatly lifted the restrictions on refinancing of investors and listed companies, which is of great significance for improving the quality of listed companies and cultivating new economic momentum. Tianfeng securities preliminary forecast that the size of private placement in 2020 may be around 1-1.2 trillion. It is not too bad to describe "a long drought with good rain".

In these two changes, the most important thing is to guard against risky reefs and make good use of the two hands restraint system of "regulation and market".

Looking back on the outbreak of the A share market refinancing, there have been many problems such as real debt, inefficient use of capital, excessive financing and sequelae caused by the acquisition of funds at will. Taking excessive financing as an example, some listed companies themselves are relatively small in their main business. In order to pursue the concept of market value and subject matter, a large amount of financing is made through private placement, and the mode of "+PE of listed companies" is used to merge the hot industries and fields at that time, resulting in the fact that capital is not real and the financing effect is not obvious.

Regulators have obviously been concerned about the key to this issue. The SFC insists that it will continuously improve the daily supervision system of listed companies, strictly regulate the conditions for refinancing of listed companies, strengthen the information disclosure requirements of listed companies, strengthen the on-site inspection of refinancing and raise funds, and strengthen the supervision of illegal activities such as "Ming stocks and real debts". In addition, the SFC also issued regulatory questions and answers to clarify the relevant audit requirements, regulate and guide listed companies to focus on main business, rational financing, rationally determine the scale of financing, raise the efficiency of raising funds, and prevent the use of fund-raising funds in disguised form for financial investment.

The first line of supervision will also play a match in time. The head of the Shenzhen Stock Exchange said that the Shenzhen Stock Exchange will also strengthen the supervision of the company's refinancing information disclosure, perform a line of supervision duties on any company that deviates from the actual needs of the main industry, refinancing companies with arbitrary changes, or invest in the interests of large shareholders, and take timely regulatory measures against the detected irregularities.

Strengthening supervision has been verified effective before, and mergers and acquisitions of listed companies have shown a rational trend. Take the Shenzhen Stock Exchange as an example, in the early stage, we should strengthen the chain supervision over the past and after the event in view of the market chaos such as over financing, cross-border acquisition, high premium acquisition and flickering restructuring. We should make full use of the means of inquiry and on-site inspection to guide the return of listed companies to the main industry and rational financing and acquisition.

In 2019, the issuer of Shenzhen refinancing nine became a high-tech enterprise, and 80% raised funds to invest in the main business of the company, helping to transform and upgrade hi-tech enterprises. More than six of the restructuring plan disclosed by gem in 2019 has become an industry merger and acquisition. Over 50% of the M & A targets are emerging strategic industries such as emerging information technology industry, biological industry, high-end equipment manufacturing industry and new materials. The average premium rate of the restructured target is 3.23 times, and has declined for four consecutive years. More rational and pragmatic.

Market constraints are also indispensable for regulatory constraints. If a listed company breaks away from its main business, it will be eliminated by the market as if it used to play the mode of "listed company +PE". Especially at the very moment when the epidemic is being attacked, the listed companies not only have the pressure to guard against risks and stable operation, but also assume the responsibility of enhancing their strength and cultivating new economic kinetic energy, focusing on their main business and focusing on core long-term value points to make good use of capital market tools.

For investors, especially institutional investors, we should seize the opportunity to share the profits and dividends of enterprises, while paying more attention to following the concept of value investment, and abandoning the enterprises that only tell stories, do not speak logically, and are busy developing money.

A steed can't jump ten steps.

Recently, the SFC has made many public statements, focusing on deepening the structural reform of the financial supply side, pushing the comprehensive deepening of the capital market reform measures to the floor, and better supporting the development of the real economy. Under this blueprint, the reopening of refinancing is only a small step in deepening the reform. I believe that the reform measures, including the reform of the gem and the pilot registration system, the perfection of the basic system and the long-term capital market, will promote the capital market steadily and steadily.

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