The situation of large-scale suspension of audit of IPO enterprises reappeared.
On January 26, 48 IPO companies on the growth enterprise market of Shenzhen Stock Exchange collectively suspended the audit. These 48 companies were either sponsored by Zhongde securities, or their accountants were ShineWing Certified Public Accountants (special general partnership), or their lawyers were Beijing Jindu law firm.
Public disclosure shows that the above-mentioned issuer was filed for investigation by the CSRC due to the sponsor Zhongde securities / the issuer’s lawyer Beijing Jindu law firm / the issuer’s reporting accountant ShineWing Certified Public Accountants (special general partnership). According to Article 64 of the Shenzhen Stock Exchange gem stock issuance and listing audit rules, the Shenzhen Stock Exchange suspended its issuance and listing audit.
In addition to the gem, on the same day, the audit of 12 IPO enterprises on the science and Innovation Board was suspended because the relevant securities service institutions hired were filed for investigation by the CSRC. According to Item 2, paragraph 1, Article 64 of the review rules for the issuance and listing of shares on the science and innovation board, the Shanghai Stock Exchange suspended its issuance and listing review procedures.
The intersection point of these three intermediaries is that they jointly served LETV from 2015 to 2016.
LETV shock wave
On April 20, 2021, the CSRC disclosed the decision on administrative punishment, which falsified the financial affairs of LETV for ten consecutive years from 2007 to 2016, resulting in false records in the IPO application materials submitted and disclosed in 2010 and the annual reports from 2010 to 2016, failure to disclose related party transactions and external guarantees in accordance with the law, and Jia Yueting Jia Moufang’s disclosure of fulfilling his commitment has false records and major omissions; We will impose corresponding penalties on LETV’s non-public offering and fraudulent issuance in 2016. Among them, LETV was fined 240 million yuan and Jia Yueting was fined 241 million yuan.
On January 18, Shanxi Securities Co.Ltd(002500) took the lead in announcing that the holding subsidiary Zhongde securities received the notice of filing a case from the CSRC. Because the recommendation business was suspected of violating laws and regulations in LETV’s 2016 non-public offering of shares, the CSRC decided to file a case against Zhongde securities in accordance with the securities law, the administrative punishment law and other laws and regulations.
According to the above administrative punishment decision, LETV’s non-public offering of shares in 2016 constituted a fraudulent offering. During this period, in addition to Sino German securities, Beijing Jindu law firm served as the special legal adviser for the non-public offering, while ShineWing served as the auditor of the annual report from 2015 to 2016.
Previously, the market also heard the news that Jindu law firm and ShineWing filed a case for investigation. Until yesterday, IPO companies suspended the audit in a large area and were confirmed.
equal and replaceable
According to the Shenzhen Stock Exchange gem stock issuance and listing review rules, in case of seven major situations in the IPO review process, the issuer, the sponsor and the securities service institution shall timely inform the exchange that the exchange will suspend the issuance and listing review, including the sponsor of the issuer or the signing sponsor representative Securities service institutions or relevant signatories are under investigation by the CSRC or judicial organs due to suspected violations of laws and regulations in initial public offering and listing, securities issuance by listed companies, mergers and acquisitions, or other businesses that are suspected of violations of laws and regulations and have a significant impact on the market.
At the same time, the newly declared IPO projects of the above intermediaries will also be affected to some extent.
Taking the gem as an example, according to the Shenzhen Stock Exchange gem stock issuance and listing review rules, sponsors, securities service institutions and their relevant personnel will be taken relevant measures such as not accepting the relevant documents issued by them if they are identified as inappropriate candidates due to securities violations, limiting business activities and within a certain period of time; Or if the initial public offering and listing, securities issuance by listed companies, merger and reorganization business are suspected of violation of laws and regulations, or other businesses are suspected of violation of laws and regulations and have a significant impact on the market and are being filed for investigation and investigation, and the case has not been closed, the exchange will not be subject to the issuance of listing application documents by barbers.
In addition to the gem and the sci-tech innovation board, there are currently more than 30 IPO enterprises queued up normally by the three intermediaries on the main board of Shanghai stock market and Shenzhen stock market, and 8 IPO enterprises queued up by the three intermediaries of Beijing stock exchange.
Since 2020, there have been two large-scale IPO suspension in the whole market due to the filing and investigation of intermediary service institutions. In the wave of suspension, IPO enterprises either wait for relevant intermediary institutions to accept the investigation and eliminate the relevant situations before resuming the listing audit; Or directly replace intermediaries.
