2021 is coming to an end, and the number of IPO companies and total fund-raising in the whole year have set a new historical record. According to the data, as of December 21, 508 IPO companies had raised a total of 527.3 billion yuan, more than the whole year of 2020, and the number of IPOs and fund-raising reached a record high. Among them, more than 70% of IPOs are issued in the form of registration system.
Experts interviewed by China Securities Journal said that the registration system further stimulates the vitality of the A-share market. Under the expectation of fully implementing the stock issuance registration system, with the deepening of the reform of Beijing stock exchange and the whole market registration system, the number of new shares issued and the amount of funds raised are expected to continue to rise in 2022.
more than 70% of IPOs are issued under the registration system
The steady progress of the registration system and the opening of the Beijing stock exchange have widened the “entrance” of the capital market, and the effect of the capital market serving the real economy and industrial transformation is more and more obvious.
According to the statistics of listing date, as of December 21, the number of A-share listed companies has reached 508 this year, an increase of 16% compared with 437 in 2020; The total fund-raising was 527.3 billion yuan, an increase of 9.7% over the total fund-raising of 480.6 billion yuan last year.
Experts believe that the steady increase in the issuance speed of the science and innovation board and the gem, coupled with the opening of the Beijing stock exchange to further increase the market vitality, is the main reason for the steady growth of the team of A-share listed companies. Data show that as of December 21, 386 stocks have been listed on the science and innovation board, the gem and the Beijing stock exchange this year, which means that more than 70% of IPOs are issued under the registration system.
He Zhaofeng, managing partner of anyong Greater China listing service, said that the revision of the securities law and the subsequent launch of the gem registration system, the partial improvement of the science and innovation board system, the establishment of the Beijing stock exchange, the return of pilot red chips and the selected layer transfer of the new third board mean that China’s capital market is opening a new era.
In addition, with the deepening reform of the capital market, a number of zhonggai shares have become a highlight of the new share market. What the market pays most attention to is the gathering of A-Shares of the three telecom giants. China Mobile will launch online subscription on December 22. If the over allotment option is fully exercised, the total amount of funds raised is expected to be 56 billion yuan, which will exceed China Telecom Corporation Limited(601728) landing on the Shanghai Stock Exchange on August 20, becoming the largest A-share IPO in recent 10 years.
“China Mobile, China Telecom Corporation Limited(601728) returned to a shares, and Baiji Shenzhou was listed in three places at the same time, which provides a reference direction for the return of China concept shares. With the continuous improvement of the policy environment, the return of China concept shares will become a major trend.” Tian Lihui, Dean of the Institute of financial development of Nankai University, said.
reform vitality releases market ecology and brightens up
While increasing the proportion of direct financing, the reform of the registration system continues to release the momentum of reform, the market-oriented issuance and underwriting mechanism is becoming more and more mature, and the market ecology is taking on a new look.
The vitality of the registration system reform has been released, which is prominently reflected in the continuous improvement of the A-share marketization level. For example, the myth of “unbeaten new shares” has been broken. Since this year, including the selected layer, 18 stocks have fallen below the issue price on the first day of listing. Among them, 12 stocks broke after October 22. After the implementation of the new regulations on inquiry, IPO pricing will really change to the market direction, and the innovation will no longer “lie and win”.
While making breakthrough progress in the reform of the registration system, it also faces some new situations and challenges. For example, high priced new shares are repeatedly abandoned in large amounts. In December, nearly 200 million yuan of new shares of Baiji Shenzhou were abandoned, setting a new high for the abandonment amount of Kechuang board. Hemai shares immediately set a new record with the abandonment amount of 363 million yuan. The high issue price is a common feature of the new shares with high abandonment amount. For another example, the CSRC found in the on-site inspection of the starting enterprise that some intermediaries had non-standard performance procedures and incomplete manuscript records. Since then, the punishment information for violations of many investment banking businesses released shows that the regulatory authorities have taken regulatory measures to varying degrees, such as regulatory talks and warning letters, to relevant institutions and their business heads. Under strict supervision, the new ecology of diligent and responsible practice of intermediary institutions has accelerated.
“Since the pilot registration system in China’s capital market, there have been some prominent changes. The inclusiveness of issuance and listing conditions has been significantly enhanced, the marketization of IPO pricing has been greatly improved, the plate structure and functions of the multi-level market have been improved, the deterrent of” zero tolerance “law enforcement is emerging, and the market ecology of survival of the fittest has accelerated, which has a great impact on the real economy, especially scientific and technological innovation The new service features have been significantly improved. ” Li Jizun, director of the first market department of the CSRC, said earlier. He pointed out that the CSRC will resolutely implement the deployment of the CPC Central Committee on the full implementation of the stock issuance registration system, maintain the determination of reform, and carry out the reform step by step.
IPO issuance remains normal
The central economic work conference proposed to “fully implement the stock issuance registration system”. Experts predict that in this context, the proportion of direct financing is expected to continue to increase, IPO will maintain normal issuance, and the capital market will play a more important role in high-quality development.
In the view of insiders, on the one hand, the science and innovation board and gem maintain the normalization of IPO. Deloitte report predicts that in 2022, there may be 170 to 200 new shares on the science and innovation board, raising 210 billion to 250 billion yuan; There may be 210 to 240 new shares on the gem, raising 160 billion yuan to 180 billion yuan. Shanghai and Shenzhen mainboards are expected to have 120 to 150 new shares, raising 200 billion to 230 billion yuan.
“In 2022, IPO issuance will maintain a normal trend, and the reform of the registration system will bring more living water for financing. The market is generally abundant in liquidity, which will help to form a new ecosystem of balance between the primary and secondary markets with the support of policies such as encouraging and attracting more long-term funds into the market.” Said Li Kang, vice president and chief economist of Xiangcai securities.
On the other hand, the reserve of reserve listed enterprises in the North stock exchange and other sectors is sufficient, and the IPO activity of small and medium-sized enterprises will be improved. Ernst & Young expects that China’s economy will continue to recover, move towards normalization, open the financial market and introduce more foreign capital. The establishment of Beijing stock exchange will promote the IPO activities of small and medium-sized enterprises, the “double carbon” top-level design is released, and the relevant policies are expected to be implemented gradually, benefiting the IPO activities related to carbon neutralization.
Deloitte reported that the establishment and operation of the Beijing stock exchange, the stable issuance of the science and innovation board and the gem, and the further deepening of the reform of the registration system, it can be predicted that the number of IPOs in China’s local market will continue to grow in 2022. The reserve listed enterprises of the Beijing stock exchange have sufficient reserves, and a large number of new shares are expected to be issued next year.
“As China’s capital market has undergone a number of major deepening reforms in recent years, we are optimistic about the prospects of China’s new share market in 2022 and the next few years. The market expects the full implementation of the new share issuance registration system, which will help create a more favorable environment for enterprises to raise funds more effectively in the domestic capital market. The interconnection of multi-level capital markets will help to Enterprises from different industries, scales and development stages entering the open market capital pool will be able to support the sustainable growth goal and the double carbon goal. ” Tong Chuanjiang, managing partner of A-share listing business of Deloitte China capital market service department, said.
(China Securities Journal)
