The list of companies to be listed that have been pressed the “pause key” because the intermediary has been filed by the CSRC has been continuously lengthened.
The latest news from the CSRC shows that up to now, 91 companies to be listed have been “recruited”, involving 12 IPO enterprises on the science and innovation board, 49 IPO enterprises on the gem, 12 IPO enterprises on the main board of Shanghai stock market and 18 IPO enterprises on the main board of Shenzhen Stock Market.
Among them, four financial enterprises to be listed, including Wanlian securities, Guangdong Nanhai rural commercial bank, Chongqing Three Gorges bank and Hongye futures, also unfortunately “won the bid”, and the IPO audit status was collectively changed to “suspended review”. Previously, the audit status of the other three companies except Wanlian securities was “pre disclosure update”.
Overall, the above-mentioned 91 enterprises are “stepping on thunder” Beijing Jindu law firm (hereinafter referred to as “Jindu law firm”), ShineWing Certified Public Accountants (special general partnership) (hereinafter referred to as “ShineWing”) and Sino German Securities Co., Ltd. (hereinafter referred to as “Sino German securities”). It is understood that the case of Sino German securities filed by the CSRC involves LETV. Jindu law firm and xinyongzhong.com are also related to this.
In fact, there have been cases in which companies planning to IPO have been dragged down by intermediaries to suspend the review. According to the usual practice, if the issuer’s intermediary institution is filed for investigation by the CSRC or investigated by the judicial organ for suspected violations of laws and regulations, and the case has not been closed, the issuer and the recommendation institution shall submit an application for resumption of review after performing the review procedure. After the review is resumed, the issuance supervision department shall arrange the review sequence according to the acceptance time of the issuer’s application.
the IPO of more than 90 companies was suspended, and four financial enterprises were unfortunately “recruited”
According to the CSRC, as of January 28, a total of 91 IPO enterprises were in the state of “suspension of review” due to the filing of intermediaries by the CSRC, including 12 IPO enterprises on the science and innovation board, 49 IPO enterprises on the gem, 12 IPO enterprises on the main board of Shanghai Stock market and 18 IPO enterprises on the main board of Shenzhen stock market.
The reason for the suspension of enterprise review is related to three intermediaries, including Jindu law firm, ShineWing and Sino German securities. Among them, more than 50 IPO companies have been suspended due to the large number of projects involved by Kindu law, which is related to this; The 42 IPO companies with ShineWing as the IPO accounting firm were also “suspended”.
It is worth noting that four financial enterprises to be listed, including Wanlian securities, Guangdong Nanhai rural commercial bank, Chongqing Three Gorges bank and Hongye futures, also unfortunately “won the bid”, and the audit status was collectively changed to “suspension of review”.
Public information shows that Wanlian securities’s application for listing on the main board of Shanghai Stock Exchange was accepted in June 2019. Previously, the company’s IPO audit status was “feedback”; The previous audit status of Guangdong Nanhai rural commercial bank, Chongqing Three Gorges bank and Hongye futures, three Shenzhen main board queuing enterprises, was “pre disclosure and update”, and the IPO was accepted in June 2019, June 2020 and June 2021 respectively.
According to the basic information table of IPO enterprises, the law firms of Wanlian securities and Guangdong Nanhai Rural Commercial Bank IPO are Jindu law firms, and the accounting firms of Chongqing Three Gorges bank and Hongye futures IPO are ShineWing.
In addition to the above 91 IPO companies being pressed the “pause key”, from January 26 to 28, a total of 24 listed companies successively issued announcements on receiving the notice of suspension of examination of administrative license application of CSRC, which are generally the same: the review of refinancing, M & A and reorganization projects of the company was suspended due to the filing of intermediaries.
Among them, two refinancing projects of listed banks, one non-public offering project of listed securities companies and one non-public offering project of listed trust companies were affected. However, the announcement shows that the refinancing projects of the two banks suspended from review have met the conditions for submitting the application for resumption of review, and both have submitted the application documents for the application for resumption of review of convertible bond issuance to the CSRC.
or involving LETV fixed increase project
the review of the refinancing projects of IPO enterprises and listed companies was suspended in a large area, or related to LETV.
On January 18, Shanxi Securities Co.Ltd(002500) announced that its holding subsidiary Zhongde securities received the notice of filing a case from the CSRC. Since the recommendation business of Sino German securities was suspected of violating laws and regulations in LETV’s 2016 non-public offering of shares, the CSRC filed a case against Sino German Securities for investigation.
Shanxi Securities Co.Ltd(002500) also announced that Sino German securities had received a civil complaint served by the Beijing Financial court, and the cause of action was a dispute over the liability for Securities Misrepresentation. Specifically, two thousand plaintiffs including Shanghai Junying asset management partnership (limited partnership) filed a civil lawsuit against LETV and other 21 defendants, asking LETV to compensate for the investment losses caused by its misrepresentation, totaling about 4.571 billion yuan, and requiring the other 20 defendants to bear the liability for compensation.
Public information shows that LETV’s non-public offering of shares in 2016 constituted a fraudulent offering, which was officially recognized in the decision on administrative punishment issued by the CSRC on April 12, 2021.
According to the administrative punishment letter, LETV submitted and disclosed false records in IPO related documents and annual reports from 2010 to 2016 due to financial fraud from 2007 to 2016, failed to disclose related party transactions as required, failed to disclose guarantees provided for LETV holdings and other companies, and failed to truthfully disclose the performance of Jia Moufang and Jia Yueting’s loan commitments to listed companies, In 2016, the non-public offering of shares constituted illegal facts such as fraudulent issuance. The CSRC imposed administrative penalties on 15 responsible subjects such as LETV and Jia Yueting, of which LETV was fined more than 240 million yuan and Jia Yueting was fined more than 241 million yuan.
It is understood that LETV’s non-public offering of shares in 2016 raised a total of 4.8 billion yuan, which was issued to CAITONG fund, “niusan” Zhang Jianping, Harvest Fund and China Post venture fund. Zhongde securities, ShineWing and Jindu law firms are intermediaries providing services for LETV’s non-public offering of shares in 2016.
According to regulatory provisions, in the process of examining application materials, securities companies and securities service institutions that produce and issue relevant application materials for applicants have been filed for investigation by the CSRC and its dispatched offices due to suspected violations of laws and regulations, or investigated by judicial organs, and the case has not been closed, If the act involved in the case and the act of providing services to the applicant belong to the same business or have a significant impact on the market, the decision to suspend the examination shall be made and the applicant shall be notified.
How does affect queuing enterprises?
It is understood that there have been cases in which companies planning to IPO have been dragged down by intermediaries to suspend the review: in August last year, due to the illegal situation of letter pHi in the process of public offering of blue mountain technology selected layer of new third board company, Hualong securities, ZTE Guanghua Certified Public Accountants, Beijing Tianyuan law firm and Kaiyuan asset appraisal were investigated by the CSRC, Then more than 40 relevant IPO projects under review were pressed the “pause key”.
According to the regulations, if the issuer’s intermediary institution is filed for investigation by the CSRC or investigated by the judicial organ due to suspected violations of laws and regulations, and the case has not been closed, the issuer and the recommendation institution shall submit an application for resumption of examination after performing the review procedures.
After the review is resumed, the issuance supervision department shall arrange the review sequence according to the acceptance time of the issuer’s application.
Some investment bankers said that from historical experience, the large-scale “suspension tide” of similar IPO enterprises generally will not have a substantive impact on the issuer’s own IPO project. As long as the intermediary performs the comprehensive review procedures and formally issues the review report, it can apply for resumption of the review and normally promote the IPO project, and the review time is generally not too long.
“The filing of the recommendation institution may have a greater impact on the IPO project, but most of the IPO enterprises that have suspended the review are law firms and accounting firms. It is expected that the CSRC should conduct routine verification according to the previous process. If the enterprise itself has no problems, it can resume the normal audit process soon.” Some insiders believe that.
“We have basically completed the preliminary review. It is expected that we can submit an application for resumption of review after the Spring Festival. After the subsequent resumption of review, the ranking on the queue list will not have any impact. It is still the original order.” A person in charge of the Board Office of an IPO enterprise who was “recruited” this time revealed.
In fact, under the background of registration system reform, strict supervision of intermediaries is an established trend. According to statistics, since 2019, the CSRC has investigated and dealt with 80 illegal cases of intermediaries, involving 24 accounting firms, 8 securities companies, 7 asset evaluation agencies, 3 law firms and 1 credit rating agency, covering key areas such as stock issuance, annual report audit, asset acquisition and major asset restructuring. In 2021, the CSRC filed and investigated 39 illegal cases of intermediaries according to law, more than double the same period last year, and transferred or notified the clues of 2 cases to the public security organ.
