2020 The First Half Of The Year Will Be Zero Record Small And Medium Banks IPO Why "Winter"

In the first half of 2020 in the IPO scale, some special industries sat on the bench.

According to the twenty-first Century economic report reporter statistics Wind data, although there were as many as 152 companies in IPO in the first half of 2020, none of them had ever been issued or issued, or even a commercial bank was scheduled to review.

From the audit data, as of July 6th, there are still 19 listed A share banks are participating in the IPO queuing process, many of which have stopped IPO information for a long time. For example, the latest announcement time of Zhejiang Shaoxing Ruifeng agricultural firm has been in the past 2 and a half years.

However, according to the reporter, there is no new change in the IPO policy for the small and medium banks at present, but at present regulators still raise the attention of IPO supervision and auditing for small and medium-sized banks.

A number of investment bankers close to regulators have revealed that the main reason for the slow progress of IPO in small and medium banks is the opaque problem of asset quality of some small and medium-sized banks. On the one hand, the potential bad debt risk is bringing pressure on the quality of assets of some regional small and medium-sized banks. On the other hand, in recent years, the landing of policies such as the new rules of regulation and management has also led some small banks to bear the pressure of active contraction.

The freezing of IPO is still unable to stop the demand for supplementary capital of commercial banks. Under this audit situation, some small and medium banks with listed intention are taking the curve financing of Hong Kong stocks and other markets.

IPO of small and medium-sized banks was frozen. Figure GREEN

Freezing time

The IPO market in the first half of 2020 can be described as "bumper harvest". Queuing banks are another scene.

Wind statistics show that in the first half of 2020, there were as many as 128 households in IPO, and the total size of the fund-raising exceeded 140 billion yuan, more than doubled in the same period last year. But in the same period, no commercial bank ever realized or started.

The reason why this situation is unusual is that in recent years, IPO in the IPO market has become a normal phenomenon.

In 2016, Shanghai bank, Hangzhou bank, Changshu bank and so on, as many as 8 regional city firms or agricultural commercial banks were listed on the IPO. Although only one bank in Zhangjiagang was listed in 2017, Qingdao, Zhengzhou, Changsha and Zijin bank completed the listing in 2018; in 2019, the number of successful IPO banks reached 7, among which the postal savings bank and Zhejiang merchants were 7. The listing of tens of billions of projects, such as banks, Chongqing agricultural businesses, and so on, made the IPO scale of bank shares reached 60 billion yuan a year.

"In fact, so many banks went public in 2019, plus several years of such a trend, the market has become accustomed to the normalization of bank stock IPO." A listed banking brokerage analyst said.

"Compared with the past few years, the listing process of bank shares this year is very slow, almost entering a frozen state." An investment bank official close to the regulatory level said, "in fact, in recent years, we have promoted the financing of small and medium-sized enterprises and strengthened the ability of regional banks to resist risks, so they are encouraging city commercial banks and agricultural firms to go public, but this year seems to have undergone some subtle changes in this direction."

In fact, there is no shortage of bank shares in the IPO audit team.

Data show that as of July 6, 2020, there were still 19 banking institutions in the IPO audit queuing process, but most of the applicants failed to push forward the IPO process this year.

Among them, the Three Gorges Bank of Chongqing and Guangzhou bank were the issuers of two new audit teams accepted by the end of June this year. In addition, only three Guangdong Shunde agricultural firms, the Guangdong Nanhai agricultural firm and Huzhou bank realized the IPO progress update in the year - the Guangdong Shunde agricultural business bank and the Guangdong Nanhai agricultural business bank updated the pre disclosure, while the Huzhou bank realized "feedback" in March 27th. "

This also means that the IPO progress of the remaining 14 small and medium-sized banks, including Chongqing bank, Lanzhou bank, Xiamen bank and Shanghai agricultural commercial bank, has not been further promoted.

"This phenomenon is not very simple. This shows that the process of IPO normalization is changing in recent years. In fact, the market is also closely observing whether the IPO potential audit requirements or policies of small and medium banks are adjusting." A bank investment project person said.

Why strict?

There is also speculation about the entry of IPO into the frozen period.

Some analysts believe that as banks are highly regulated by wind control indicators, they are more cautious in promoting their listing. Therefore, some banks may be delayed in listing.

"The bank's IPO procedure is relatively slow. For example, in addition to reporting to the SFC, it also requires the approval of the CIRC. In addition, many banks are state-owned assets, so the listing itself also needs approval from the state owned Assets Department, and some banks have made changes in the middle of the Bank and introduced social capital. The historical evolution and identity legitimacy of these social capital often need to be more rigorous. Card. " A city business executive said frankly, "maybe many factors stacked together, leading to a slowdown in the IPO of banks."

The specificity of banking financial institutions is indeed an explanation, but this is not the whole reason for its slow progress of IPO.

The investment bankers close to the regulatory authorities revealed that there is no clear change in the IPO audit requirements and policies for banking financial institutions, but regulators are paying close attention to the quality of the IPO bank assets during the audit process.

"Regulators are paying close attention to asset quality. The quality of assets is not necessarily the rate of bad loans disclosed by banks, but some possible invisible debt rates." The investment bankers close to regulators said, "the reason is that in recent years, credit risk has risen, and some highly leveraged banking institutions may bury hidden bad debts."

Some banks' credit dealers also admitted that in recent years, with the advent of the new regulation of the information management system, the shrinking of assets under the shadow banking governance and the high potential of some potential credit risks are bringing more pressure to the assets quality of banks.

"These years, the credit risk of enterprises is getting higher and higher, especially the liquidity risk of some large private enterprises and local city investment platforms, and some of them are being transmitted to commercial banks." "Although some problems have been exposed, there may be some risks buried below the horizontal line. Under the operation of new loans and renewal, the bad debt rate of individual banks may not be concealed."

In the view of the industry, if banks with asset quality risks declare A share listing, once the risk of bad debts exceeds the level disclosed in the prospectus, it is obviously a challenge to the information disclosure system of the capital market, and the regulatory authorities have to intensify their examination and verification.

"The trend of IPO audit in recent years is to weaken the" soft requirement "of the public standards beyond the open standards, and to emphasize the authenticity and compliance of information disclosure, which is also determined by the direction of registration reform. The investment bankers close to the regulatory authorities said, "but the quality of small and medium banks' assets is indeed closely related to information disclosure. Therefore, strict auditing is also responsible for the market."

However, in the view of analysts, it is still the current demand for small and medium-sized banks to replenish capital through IPO.

"Under the new regulation of information management, the assets outside the previous timeline are constantly returning to the table, plus some bad debts. In fact, the capital of some small and medium-sized banks is under the pressure of assessment. Therefore, for many small and medium banks, there is a hard demand to replenish net capital through listing and capital raising." The above banking analysts said, "from a macro perspective, small and medium bank customers are often small and medium-sized enterprises, so only by further replenish the capital of small and medium-sized banks, can they increase their risk preferences and expand their business capabilities, provide credit for more SMEs and help counter cyclical regulation."

Under this trend, many banks are already seeking another way out. For example, the Hong Kong stock market has become a curve listing plan for some small and medium-sized banks. For example, in June 30th, the Bank of Bohai launched the stock exchange plan at the HKEx and became the first bank stock to implement IPO in China this year. Two days ago, Dongguan agricultural and commercial bank also submitted an application for Hong Kong stock listing.

In addition, regulatory authorities are encouraging small and medium banks to supplement net capital through various channels.

For example, the Banking Regulatory Commission said last month that it encouraged the introduction of investors in a market-oriented way, and actively promoted the increase of endogenous capital replenishment capacity of banks and improved the efficiency of capital utilization. It supported banks to expand capital replenishment channels by issuing common stock, preferred stock, non fixed term capital bonds and two tier capital bonds, and encouraged local governments to raise funds through various ways. Gold helps small and medium-sized banks to replenish capital.

"From the big trend, small and medium banks will continue to replenish net capital, although the quality of their assets may be further concerned during the audit process, but the goal of promoting more excellent small and medium banks and promoting healthy development of the capital market is still consistent." The investment bankers close to the regulators said.

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