On January 30, China's Securities Regulatory Commission issued "Opinions on Implementation of the Founding of the Science and Technology Committee and Pilot Registration System on the Shanghai Stock Exchange" (hereafter "Implementation Opinions"). China's Regulatory Commission for Securities and the Shanghai Stock Exchange are in the process of improving the establishment of the Science and Technology Board and piloting the registration system in accordance with the requirements of Implementation Considerations.
Journalist "Daily Economic News" noted that "Implementation Opinions" introduced detailed provisions on the abolition of scientific and technological companies. Clearly authorize the stock exchange to increase market value-based impairment indicators based on existing indicators for the abolition of the trading class, and if the market order is seriously damaged, the rights of the investor are seriously damaged and the company has not corrected within the prescribed deadline, the stock market may abolish the stock list. As far as the procedure is concerned, the Science and Technology Committee no longer imposes a suspension of inclusion, continuation of listing and re-listing, and the termination procedure is included in a shorter and clearer form.
Delisting system is strictly regulated by three aspects
The incorporation and exclusion of the company represents the "import" and "export" of companies entering the market of scientific and technological panels, which is directly related to the market positioning of the science and technology committee and the future market ecology. What are the terms and conditions for listing and abolishing the standards of the Shanghai Stock Exchange ("Rules for Listing of Shares") (hereinafter referred to as "Listing Rules")?
The basic idea of the exchange is to formulate the conditions of incorporation that are more comprehensive and strictly enforcing the abolition system in order to equalize the "import" and "export" of the market. It is important to note that on the standard of abolition, the Science and Technology Committee focused on the implementation of "strictness". In designing the exclusion system from the Scientific and Technological Board, the existing practice of omission is fully borrowed, and key points are strictly regulated in terms of standards, procedures and implementation.
First, standards are tighter. In the case of forcible abolition of major illegal cases, the last results of the abolition system reform were absorbed and major unlawful injuries were clarified, such as large unlawful disclosures and public security breaches, and in the event of termination of market indicators, volume and inventories were built up. Four types of abolition of standards such as price, shareholder number and market value, the system of indicators is more complete and complete, in terms of financial indicators, quantitative provisions made on a qualitative basis, and the basic characteristics of "hollow" mainstream businesses which lose their ability to maintain Businesses are multi-dimensionally characterized. A continuous loss-out indicator is no longer used. Compared to other indicators of compliance, based on the retention of existing elimination indicators, such as non-disclosure of timely financial statements, issues with negligent opinions or negative opinions, and an increase in the number of discrepancies, such as major shortcomings in disclosure of information or standard work,
Second, the procedure is more stringent. Simplify the termination process, abort the suspension of the listing, and continue the listing process, and directly abolish the list of companies that should be abolished, avoiding the long-term retention of large illegal and major business hubs, damaging market expectations and pricing mechanisms. A company that has squeezed its business downtime and touched on the financial abolition index will implement a termination notice in the first year, and will continue to be abrogated directly in the second year. No special link for re-listing will be established and if the eligible companies qualify for inclusion in the Kechuang Board, they may apply and accept the assessment in accordance with the registration procedures and the requirements for issuing and listing shares, but if they are forced to withdraw from markets due to major illegal misconduct, no new ones can be proposed. Issue your listing app and permanently retire from the market.
Third, implementation is more stringent. An outstanding problem in implementing the current system of abolition is that individual "hollow" companies smash financial data and avoid the abolition of targets by conducting transactions that have no trading value. In order to address this "difficult problem," the Scientific and Technological Board exclusion committee specifically stipulates that if the business income of the aforementioned companies is mainly derived from a business transaction that is not related to the principal activity or associated transactional income that does not have a commercial substance, there is evidence that the company's already obvious loss of ability to resume operations will be removed in accordance with prescribed terms and procedures.
Direct termination of listing when it comes to termination of a request
With regard to the abolition of the Articles of the Science and Technology Committee, "Implementation Opinions" clearly authorize exchanges to increase market share indicators based on existing indicators of trade abolition, and science and technology are a false issue. In the case of major illegal activities in the field of security, public security etc., Shares will be abolished if trading indicators such as trading volume of Science & Technology Co., Ltd. shares ceased with the criteria for listing, the shares will be abolished, the scientific-technological company will lose the ability to continue the business, and the financial indicators cease to be included. In the standard, stocks should be abolished, the company does not apply a unique loss indicator list indicator and sets a combination ending indicator that reflects the company's ability to continue operating.
From the procedural point of view, the Kechuang Council no longer imposes a suspension of inclusion, continuation of listing and re-listing, and the procedure for lifting the list is more concise and clearer.
In this regard, Chen Yanli, the founding partner for capital management, told the Daily News newspaper that the establishment of the science and technology committee increased the offer of technology companies in the market, leading to the false market forces, so that truly valuable technology companies are gaining market share. recognition. For technology companies listed on the A market, the launch of the science and technology committee is the cornerstone. In the past, the "frozen concept" of pseudo-technology stocks will lose the shortage in case of increased bidding, and will come up with an evaluation system for such companies. to change. On the contrary, the market will admit some "real power" technology companies, and the funds will favor leading companies with core technologies.
In addition, Chen Yanli believes that the Kechuang Board can dilute traditional indicators such as profitability, which favors meeting the needs of different types of enterprise at different stages of development, and companies can focus more on their own operations and do not have to dress up as it needed in the past . The introduction of the Science and Technology Committee has enriched and improved the Chinese capital market structure at several levels, and the new sector favors new institutional arrangements and is conducive to the development and development of the Chinese capital market. At the same time, the position of the science and technology committee is conducive to promoting China's economic transformation and modernization, and contributes to the advancement of China's scientific and technological solid power.
Exceptional exclusion will not be re-enumerated
The Daily Economic News reporter noted that "Implementation Opinions" also prescribe that Science & Technology Co., Ltd. is a fake issuance, major misdemeanors in information disclosure, or other important issues that include national security, public security, environmental safety, production security and public health and safety. In the case of unlawful acts, the shares will be abolished. The Shanghai Stock Exchange also said that a company that will decompile termination of business and touch the financial abolition index will carry out a risk abolition warning in the first year, and will continue to be abolished in the second year. No special link for re-listing will be established and if the eligible companies qualify for inclusion in the Kechuang Board, they may apply and accept the assessment in accordance with the registration procedures and the requirements for issuing and listing shares, but if they are forced to withdraw from markets due to major illegal misconduct, no new ones can be proposed. Issue your listing app and permanently retire from the market.
For this set of regulations, Chen Yanli believes that the system of registration has solved the shortcomings of the existing approval system and has difficulties in meeting the need to launch new businesses, and has increased the ability and means of local financing of scientific and technological enterprises. Secondly, the Science and Technology Committee has expanded its PE / VC channel, a technology-based investment facility for project inventories to enhance the vitality of the primary market, and more actively served it to science and technology companies. In addition, the registration system reduces the demand for rent, reduces responsibility and pressure on regulators, and creates fair value through sufficient disclosure of information and market play, in order to achieve the goal of purifying the market. Unlike the previous motherboards, GEMs and small and medium-sized boards, the company can intensively optimize reform from the underlying mechanism and have relatively flexible institutional arrangements in the issuance and abolition process.
Chen Xiwei, a senior private equity analyst, told the Daily Economic News reporter that the launch of the Science and Technology Committee was positive for the venture capital market and opened up the venture capital risk market, creating a real closed circuit. Earlier, the equity risk capital market was marked by a long period of investment, low market liquidity, restricted exit channels, etc. Many innovative MSPs faced difficulties in financing, and a pilot system of registration was launched. The problem is that this has injected a "cardiotonic agent" into the future macroeconomic development of China.
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