Wen/Chen Kangliang
Since this year, many A-share companies to be listed in China have rarely taken the initiative to withdraw their IPO (initial public offering) applications, which is significantly more than last year, causing concern.
The number of enterprises voluntarily withdrawing IPO is 1.7 times that of the same period last year
According to the data of Wind, a financial data service provider, as of May 19, 144 companies had voluntarily withdrawn their IPO applications this year, including 47 Shanghai and Shenzhen main board companies, 21 science and technology innovation boards, 38 growth enterprise boards, and 38 Beijing Stock Exchanges; This number is about 1.7 times that of the same period last year.
Among them, there are many enterprises that have passed the review of the Listing Review Committee of the Exchange by pressing the "Withdrawal Key".
According to the recent announcement of Shenzhen Stock Exchange, Anhui Jingqi Network Technology Co., Ltd. and its sponsor actively requested to withdraw the registration application documents when the CSRC reviewed its IPO and listing application documents on the GEM. It is worth noting that the enterprise has passed the conference as early as 2021.
In addition, Zhejiang Control Valve passed the GEM IPO meeting in December 2022, failed to submit for registration for more than a year, and withdrew its IPO in March this year; Boling Electric Co., Ltd. held the GEM IPO meeting in November 2022. After the meeting, it did not submit for registration for more than a year, and finally withdrew its IPO in March this year.
Zhao Xijun, co president of the China Capital Market Research Institute of Renmin University of China, said in an interview with the China News Service through train reporter that from the public information, the reason why the above enterprises voluntarily withdrew their IPO applications was mainly because they found problems in the company's compliance, sector positioning, information disclosure, accounting treatment and other aspects during the IPO self inspection process and corrected them in a timely manner. The reason why enterprises are so active in self-examination and self correction on IPO issues is closely related to the current trend of "strict supervision" in China's capital market.
Since Wu Qing took the post of Chairman of the CSRC in February this year, especially since the release of the new "National Nine Rules", "strengthening the foundation, strict supervision and strict management" has become the regulatory keynote of China's capital market.
After taking office, Wu Qing stressed on public occasions many times that listed companies are the foundation of the market and the source of investment value, so it is necessary to further promote and improve the quality of listed companies.
At the just past "May 15 National Investor Protection Publicity Day", Wu Qing once again said that from the "entry" of listed companies to continuous supervision and then to "export", more strict institutional arrangements are being established. The purpose is to resolutely keep counterfeiters out, implement the requirements of openness and transparency in the whole process of company information disclosure, integrate the concept of respecting investors and rewarding investors into various mechanisms of corporate governance, and resolutely remove "zombie enterprises" and black sheep from the market.
The latest policy comes from the Guidelines for the Application of Regulatory Rules - Issuance No. 10 issued by the CSRC on May 15, which requires the issuer to publish a statement to investors in the prospectus, improve the information disclosure rules of post listing dividend policy, and strengthen the information disclosure of unprofitable enterprises.
Zhao Xijun said that because the regulatory authorities have put the tone of "two strong and two strict" through the whole process of enterprise issuance and listing supervision, and continued to do a good job in IPO supervision, listed company supervision, and delisting supervision, to a certain extent, this has forced the companies to be listed to seriously carry out self-examination and self correction of IPO, effectively curbing the behavior of "breaking through barriers with diseases" and speculative listing.
Marco Polo was suspended
It is worth noting that the keynote of "strict supervision" was also reflected in Marco Polo's project. As the first meeting project after the issuance of the new rules for IPO, Marco Polo's IPO attracted extensive attention from the market.
On April 30, Shenzhen and Shanghai Stock Exchanges officially released the revised Rules for Review of Stock Issuance and Listing and other business rules to improve the financial conditions for listing in each sector and further clarify the requirements for sector positioning.
The Municipal Committee of Shenzhen Stock Exchange held a meeting on May 16 to review Marco Polo's IPO application and make a decision to postpone the review.
The relevant person in charge of Shenzhen Stock Exchange said that the municipal party committee suspended the review of Marco Polo's listing application this time, mainly considering the actual situation that the company's operating income and profit had declined to a certain extent during the reporting period, and it is necessary to further confirm whether the uncertainties affecting performance have been eliminated on the existing basis.
According to the public information, Marco Polo focused on the research, development, production and sales of building ceramics, and was one of the largest manufacturers and distributors of building ceramics in China. From 2021 to 2023, Marco Polo's operating revenue was 9.365 billion yuan (RMB, the same below), 8.661 billion yuan and 8.925 billion yuan respectively, and its net profit was 1.653 billion yuan, 1.514 billion yuan and 1.353 billion yuan respectively.
Marco Polo said that because the downstream real estate of the company is greatly affected by macroeconomic and policy regulation, if the macroeconomic environment or the competitive environment of the company has significant adverse changes, it may affect the stability of the company's product prices and operating performance, and the company's operating profit is at risk of further decline.
Some market participants believe that Marco Polo's main business is architectural ceramics. Combining the company's industry and its own business situation, the decision to postpone the review was made to further evaluate the stability of the issuer's business performance in the subsequent period, which not only reflects the pragmatic attitude of seeking truth from facts and objectively treating the enterprise's application for development, but also shows the serious implementation of the new "National Nine Articles", The firm determination to strictly control the issuance access according to law, improve the quality of listed companies from the source, and better protect the legitimate rights and interests of investors.
In view of the stricter IPO regulation, Dong Zhongyun, chief economist of AVIC Securities, said that this would not only help optimize the allocation of resources, but also urge the companies to be listed to prudently consider the timing and scale of financing by adjusting the pace of IPO, so as to avoid excessive or insufficient market liquidity and achieve effective allocation of capital; It also helps to improve the quality of listed companies, strictly review the enterprises to be IPO, and help to screen out companies with more development potential, thus improving the overall quality of listed companies; In addition, it can also stabilize the secondary market sentiment, avoid market fluctuations caused by a large number of new shares listed in the short term, and maintain market stability.
Looking into the future, Wang Yi, chief economist of Great Wall Securities, believes that with the continuous implementation of the policy, the new ecology of A-share IPO market will gradually form, which will not only help optimize the interaction between the primary and secondary markets, improve the overall quality and efficiency of the capital market, but also create a safer and more transparent investment environment for investors. In the long run, it will also promote the sustained prosperity and stable development of the capital market and better serve the high-quality development of the real economy.
Source: Guoshi through train
Editor: Zhuge Ruixin
Editor in charge: Wei Xi
