Beijing Stock Exchange Stirs Up The Ecology Of The New Third Board

On September 2, the Beijing stock exchange (hereinafter referred to as the "Beijing stock exchange") was born, and the work was progressing rapidly. Within half a month, the Beijing stock exchange has completed the company system of industrial and commercial registration, listing, trading, membership management and other six basic rules system has basically taken shape. As of September 17, the China Securities Regulatory Commission (CSRC) solicited public opinions on 11 supporting rules related to the listing, refinancing and continuous supervision of the Beijing stock exchange. The management measures for the appropriateness of investors of the Beijing stock exchange were officially released on the same day, and the threshold for individual investors to participate was further lowered than that required by the previous selection level.

The rapid development of the preparatory work and system construction of the Beijing stock exchange has given all kinds of market participants a shot in the arm. According to the incomplete statistics of the 21st century economic report, as of September 18, more than 20 companies listed on the new third board have withdrawn their applications for delisting or rejected the motion of the board of directors to delist from the new third board, and some of the delisted companies have restarted the listing process of the new third board.

"The establishment of the Beijing stock exchange has directly made the listed companies on the new third board complete the transformation from non listed public companies to listed companies, and the complete listing channel from the new third board to the Beijing stock exchange has been opened, which is more smooth than the transfer board system, which is also an important factor to attract enterprises to return to the new third board," said Cao Gang, partner of Zehao investment.

The rapid development of the preparatory work and system construction of the Beijing stock exchange has given all kinds of market participants a shot in the arm. Visual China

More than 20 enterprises return to the new third board

Withdrawing the application for termination of listing has become the "new fashion" of enterprises listed on the new third board recently.

According to the statistics of the 21st century economic report, since the announcement of the establishment of the Beijing stock exchange, 17 companies listed on the new third board have issued a suggestive announcement that they intend to withdraw their applications for termination of listing on the new third board.

For example, recently, St yingfutong (830801. NQ), a listed company at the basic level, announced on September 15 that due to the strategic adjustment of the company and for consideration of long-term development, the company intends to cancel its application for the termination of listing in the national small and medium-sized enterprise stock transfer system, and after completing the internal review procedures and obtaining the approval of the national stock to company for re listing of shares, The company's shares will continue to be publicly transferred through the stock transfer system.

The ancient information of innovative companies (831062. NQ) also said that in view of the recent great changes in the relevant rules and policies of the capital market, in order to protect the interests of all shareholders of the company to the greatest extent, the management reviewed the company's future development plan after careful study of relevant laws and policies, and after full communication and discussion, The company intends to apply for withdrawal of relevant matters related to the termination of listing of the company's shares.

In addition to withdrawing the application for termination of listing, many listed companies "cut off" the "idea" of delisting in the deliberation stage of the general meeting of shareholders.

Star Bridge (871675. NQ) held on September 16, 2021 at the third extraordinary general meeting, voted down the relevant motion delisting. He also said that "shareholders considered the company's future development strategy and the new relevant policies of the capital market" before rejecting the relevant delisting motion. Didi Jiyun (836254. NQ), which vetoed the delisting motion on the same day, also said that "in view of the further deepening reform of the new third board and considering the actual situation and future development of the company", it also rejected the above-mentioned proposal on the termination of listing.

Similar to the above two companies, there are Fugong tools (839842. NQ), xingpan Technology (833166. NQ), Kerui Biology (832780. NQ), Kexin Huazheng (837617. NQ), etc. Many companies have just announced delisting, that is to withdraw the relevant applications.

"Some companies delisted because the market financing capacity is not strong, but also extra burden in the audit and other aspects of the cost, also want to delist slowly after delisting to achieve A-share listing. Now the listing path from the new third board to the Beijing stock exchange is very clear, and the listing threshold of Beijing stock exchange is closer to small and medium-sized enterprises, so there is no reason to delist." said the Director Secretary of innovative enterprises in Beijing.

There are many companies that have announced the termination of delisting, which have met the threshold for public offering to enter the selection layer. For example, Jinxin Lvjian (839696. NQ), its net profit in 2019 and 2020 will reach 18.46 million yuan and 38.07 million yuan, and the return on net assets will be 12.97% and 21.66% respectively, which meets the requirements of financial standard 1 of selected layer. Another winner, Weiye (839820. NQ), which terminated the delisting process, also met the requirements of the listing selection layer.

"In the past, some companies took the initiative to delist from the new third board for various reasons. The most important thing was that it was difficult to obtain complete support from the capital market in the new third board, especially the public offering and listing. Therefore, they felt that there was little room for effective implementation in the new third board, so they chose to withdraw from the stock market and seek IPO in Shanghai and Shenzhen stock exchanges." GUI Haoming, chief analyst of Shenwan Hongyuan securities, said. GUI Haoming believes that in fact, nearly 30% of the companies listed on the Shanghai and Shenzhen stock exchanges in the past two years have come from the new third board. The new third board continuously provides qualified and high-quality listing resources for Shanghai and Shenzhen stock exchanges, but it also shows that the competitiveness of the new third board is not strong. After the birth of the Beijing stock exchange, "when enterprises are not so standardized, they come to the new third board and go through the basic level to the innovation level. In the end, those who meet the requirements can be listed on the Beijing stock exchange. This is very attractive for small and medium-sized enterprises."

Lowering the threshold and combining with mixed trading to improve liquidity

Encouraged by the news of the establishment of the Beijing stock exchange, more and more enterprises choose to stay in the new third board. Meanwhile, the selection layer which will be directly transferred to the Beijing stock exchange in the future is also speeding up the audit speed.

According to the current institutional arrangements, all listed companies on the new third board will be listed on the Beijing stock exchange in the future. The follow-up listed companies on the Beijing stock exchange will be generated from qualified innovative listed companies. This also means that the selected enterprises to be listed at present have the opportunity to be directly transformed into listed companies of Beijing stock exchange, or become the most direct "reserve force".

On the evening of September 2, as soon as the news of the establishment of the Beijing stock exchange came out, the official website of the national stock transfer company issued a notice on the meeting of the listing committee to examine the listing selection layer of Jinhao medical (872925. NQ). At this time, more than two months have passed since the last listing review meeting of the selection level.

During the next seven working days from September 17 to September 28, the company arranged a total of eight review meetings on the listing of the selected layer, which deliberated on the application of the selection layer for public offering and listing of 12 enterprises. Similar audit rhythms were not common in the previous listing process of selected layers.

"Jinhao medical company did not attend the meeting for a long time before, or was affected by the supplementary materials of the Chinese newspaper. On the one hand, such a dense listing review meeting should catch up with the previous progress, on the other hand, I think it is necessary to gather a number of enterprises to wait for the opening of the Beijing stock exchange." a Beijing area securities firm new third board employees said.

According to the statistics of Anxin securities, as of September 17, in addition to the 66 companies that have realized public offering and listed on the selected layer, 142 of them are under the guidance of listing guidance, and 63 listing applications have been accepted.

Cao Gang pointed out that whether the enterprises voluntarily give up delisting or actively apply for the listing of the selected level, they are all boosted by the news of the establishment of the Beijing stock exchange. "The status of listed companies is obviously very important. The newly revised management measures for the appropriateness of investors of Beijing stock exchange have lowered the entry threshold for individual participation in the Beijing stock exchange, making the whole market more attractive to enterprises."

On September 17, the Beijing stock exchange issued the "Beijing stock exchange investor suitability management measures (for Trial Implementation)", which specified the admission threshold for individual investors to participate in the transactions of the Beijing stock exchange: "the assets in the securities account and the capital account in the 20 trading days are no less than RMB 500000", which is further lowered than the individual investor threshold of RMB 1 million at the selected layer. At the same time, the new third board innovation layer individual investor access capital threshold has also been adjusted from 1.5 million yuan to 1 million yuan.

According to the statistics of Anxin securities, by the end of 2020, the number of individual investors in the new third board was 1.658 million. The entry threshold of the Beijing stock exchange is consistent with that of the science and Technology Innovation Board of Shanghai Stock Exchange. According to the data of the position structure of investors at the end of 2020, there are 3.32 million investors with a market value of more than 500000 yuan. Considering the market value of Shenzhen Stock Exchange and other financial assets reflected by investors in banks, the number of investment accounts meeting this standard will be more. As a matter of fact, as of July 2021, the cumulative number of accounts opened on the science and technology innovation board, which also has a threshold of 500000 yuan, has reached 7.89 million.

"Considering the new positioning and attractiveness of the Beijing stock exchange, we expect that the number of investors in the future will be more than 3.32 million. It is estimated that the number of investors will be between 3.32 million and 7.89 million, which will be several times higher than the current situation. The number of investors and the market scale will increase, and the liquidity is expected to be greatly improved." Anxin securities new third board chief analyst Zhu Haibin said.

In the view of the above brokers. The individual investor threshold of Beijing stock exchange is further lowered than that of the selected level, which also helps to bring about better effect after the introduction of hybrid trading system in the future.

Previously, the Beijing stock exchange has said that in terms of trading system, there is still room for the introduction of market making mechanism and the implementation of mixed trading. The so-called "hybrid trading" refers to the introduction of market makers in the selective layer continuous bidding transaction, so that investors can trade directly with market makers. On the basis of continuous bidding, market makers and investors trade with each other as counterparties.

"Hybrid trading and lowering the threshold are actually both inside and outside of each other. Only market makers are introduced, and without the participation of individual investors at the bottom, they can not play an effective role. If both systems can be implemented, the liquidity of the Beijing stock exchange will be greatly improved in the future," said the securities dealers.

?