Who Is The Most "Injured" Sponsor In The Fierce Storm Of IPO On-Site Inspection

In 2021, just entering February, there have been 24 IPO companies.

According to wind data statistics, as of February 3, 25 IPO companies in the A-share market have terminated the audit or registration. Except for 3 enterprises under the approval system which did not disclose the reasons for termination, the remaining 22 IPO companies under the registration system all voluntarily withdrew their listing application materials. If we start to calculate from October 2020, 71 companies have terminated their IPO path in only four months, and only 89 companies have successfully listed in the same period.

Behind this "termination" list is an increasingly fierce IPO on-site inspection storm since October last year.

"The intensity and frequency of IPO on-site inspection have increased. Now, it is often found that many enterprises withdraw materials on the same day, mostly caused by on-site inspection." There are small and medium-sized securities firms in Beijing investment banking business personnel said.

The IPO companies withdraw their listing application materials one after another, which also draws the market's attention to the practice quality of sponsor institutions.

From the data point of view, many head securities companies have also been "successful". According to the statistics of 21st century economic report, among the 71 companies that have terminated the audit since October 2020, 8 companies have been recommended by Guotai Junan and 7 companies have been recommended by China Merchants Securities. And CITIC Securities, CITIC construction investment and other securities companies also have 4 projects terminated.

The number of projects terminated by monarch is the most, and the proportion of safe termination is the largest

The termination of the listing of enterprises also means that the projects of sponsor institutions are "broken".

According to the statistics of 21st century economic reporter, among the 71 companies that have terminated the audit since October 2020, 8 companies have been recommended by Guotai Junan and 7 by China Merchants Securities. After that, CITIC Securities, China Securities construction investment, Guojin securities, Haitong Securities, Guoxin Securities and Minsheng securities all terminated. However, two projects of CICC and Huatai United Securities, which are both "Three China and one China", were terminated respectively.

According to the reporter's statistics, this "list" has changed a lot compared with the termination situation of the enterprises to be listed before the on-site inspection of IPO is tightened in October 2020.

If joint sponsorship projects are included, four IPO projects of CITIC Securities were terminated in the first three quarters of 2020, ranking the first in the industry. After that, Anson securities and Minsheng securities had three termination projects respectively. China Merchants Securities, Shenwan Hongyuan and Zhongyuan securities have two respectively, and one project of China Merchants Securities is a joint sponsor.

It can be seen that before the on-site inspection is tightened, the IPO projects terminated by Guotai Junan, Guojin securities, Haitong Securities and Guoxin Securities did not rank in the forefront of the industry.

It is worth noting that Guotai Junan, which is the top of the list of terminated projects, has 5 of its 8 terminated projects. This may also be related to the recent tightening of IPO on the science and technology innovation board.

However, although the absolute number of terminated projects of some securities companies is relatively large, it is not the highest from the perspective of termination ratio. In this regard, some industry insiders pointed out that the number of sponsor enterprises of some head securities companies is large, so there are more projects with problems in proportion calculation.

From the overall data, including counseling and filing registration, from October 2020 to now, CITIC Securities, the "big brother" of the securities industry, has won 152 IPO projects, and has become the only securities company with more than 150 sponsors in the current period. After that, China Securities Construction Investment Co., Ltd. has recommended 111 enterprises, and Guotai Junan, Huatai united, Haitong Securities and Minsheng securities have also recommended more than 90 entrepreneurs.

After comparison, it can be found that although Guotai Junan has 8 IPO projects terminated, the total number of entrepreneurs sponsored by Guotai Junan has reached 98, so the proportion of terminated enterprises is 8.16%. In contrast, China Merchants Securities has a higher proportion, with 12.07% of the IPO projects terminated. And Ping An Securities, a medium-sized securities firm, has a low total base, and the proportion of terminated projects reaches 15.79%.

In addition, Guoxin Securities accounted for 7.41% of the terminated projects, Guojin securities accounted for 6.35%, and other securities companies were less than 5%. CITIC Securities is as low as 2.63%, and the quality of its investment banking projects is worthy of recognition.

"Driven by the registration system, IPO listing resources have been significantly expanded. Securities companies and investment banks have also entered a state of massive recruitment and rapid work. The control over project quality may not be as good as before. I guess in the IPO project that withdraws the material voluntarily, there should also be loopholes caught by on-site inspection because the manuscript of securities companies is not in place. " The senior investment bank said.

It is worth mentioning that, just recently, the Shanghai Stock Exchange has issued new regulations to compact the responsibilities of intermediary agencies.

At first, the Shanghai stock exchange requires intermediary institutions to submit self-examination forms at the same time or within 3 working days after acceptance of the application documents for the issuance and listing of enterprises, and explain the relevant problems of listing conditions and common information disclosure and verification problems of the science and technology innovation board. On February 3, the Shanghai Stock Exchange issued guidelines on on on-site supervision of recommendation business, further institutionalizing and publicizing the relevant contents of on-site inspection.

Only from the perspective of the science and technology innovation board market, it can be foreseen that the self inspection of intermediary agencies will be the first barrier to prevent the listing of enterprises with diseases, while the on-site inspection system will further screen the enterprises with possible problems on the basis of the review of the municipal Party committee.

On site inspection work is becoming more and more vigorous

Behind the frequent "arrow" of sponsor institutions is the fierce attack of IPO on-site inspection since October 2020.

In fact, before October 2020, the on-site inspection work was not as "vigorous" as it is now. According to wind statistics, in the first three quarters of 2020, only 30 enterprises have been terminated from IPO, and only 57 enterprises have been terminated in the whole year of 2019. According to the on-site inspection of the second batch of IPOs in 2019 announced by the CSRC, the CSRC spot checked 86 IPO companies, 84 of which completed the inspection at that time, of which 30 enterprises withdrew the listing application termination review, accounting for 35.7%. In the process of the first batch of on-site inspection in 2019, 9 enterprises applied to withdraw the application materials, accounting for 20.4%.

"In fact, according to the data collected by the regulatory authorities at that time, 100% of the selected enterprises will be found to have problems, but only a few of them have withdrawn materials and terminated the audit. The on-site inspection is not so terrible. If it is selected and solved, the follow-up audit speed will be accelerated. But judging from the termination of the current enterprise, the difficulty of passing the on-site inspection has undoubtedly increased. " There are senior securities firms in Beijing Investment Bank said.

Judging from the recent termination of audit or registration of enterprises, most of them have passed the first round of inquiry of the exchange.

Among them, Xiamen Duoxiang interactive Culture Communication Co., Ltd., which has passed the examination and approval of the Municipal Committee of the stock exchange, withdrew its application for initial listing at the moment when it was submitted to the CSRC for registration and was only "a foot in the door" before listing.

"The so-called voluntary withdrawal, in most cases, is discovered by the regulatory authorities and dissuaded." The above small and medium-sized securities firm investment banking business personnel said.

It is worth mentioning that the "sharp weapon" of on-site inspection was upgraded at the beginning of this year.

On January 29, the China Securities Regulatory Commission (CSRC) issued the regulations on on on-site inspection of first-time enterprises, which originally stayed in the window guidance on paper. Subsequently, on January 31, the Securities Industry Association announced a list of quality spot checks on the initial information disclosure. The objects of the spot check were companies on the science and technology innovation board and the growth enterprise market 30 days ago, including some controversial companies to be listed.

In addition to the factors of stricter on-site inspection, he Nanye, an investment banker, said that since the implementation of the registration system of the science and technology innovation board, the qualification of enterprises has indeed declined. More and more enterprises have been withdrawn or voluntarily withdrawn under the guidance of the window, and the number of enterprises that have terminated the audit has become a normal phenomenon.

Some investment bankers close to the regulatory level told the 21st century economic report that the on-site inspection is often considered to alleviate the problem of excessive concentration or excessive number of queuing enterprises. As a matter of fact, on-site inspection is one of the supervision measures to ensure the entrance clearance. The purpose of on-site inspection is to tighten the responsibilities of issuers and intermediaries and ensure that a "real company" is presented. The withdrawal of materials and termination of application by enterprises are only the results of on-site inspection. Most of these enterprises break through the barriers with diseases. It is the proper meaning of supervision to prevent diseases from entering the country through various dynamic supervision measures. "To put it bluntly, if the quality of the enterprise itself is excellent and the intermediary agencies are responsible, no amount of on-site inspection will reduce the number of enterprises queuing up."

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