2021 entered the countdown. Looking at the IPO market throughout the year, under the background of the pilot reform of the new share issuance registration system, the direct financing capacity of China’s capital market continued to increase, and the number of IPO enterprises and total fund-raising during the year set a new historical record. As of December 23, more than 500 new shares were listed in A-Shares during the year, with a total IPO fund-raising of more than 520 billion yuan, of which more than 70% were issued under the registration system.
Looking forward to 2022, the reform of the registration system in the whole market is imminent, Orient Securities Company Limited(600958) chief economist Shao Yu believes that after years of pilot reform, the implementation of the registration system in the whole market has been relatively mature, the basic system of the capital market driven by the registration system will step to a new stage, and the IPO issuance will continue to be normalized to support the high-quality development of the real economy.
number of IPO enterprises
and total fund-raising reached a new high
According to statistics, as of December 23, more than 500 new shares of A-Shares have been listed this year, and the total amount of initial funds raised has reached 522.9 billion yuan, both in quantity and amount, reaching a record high. The number of IPO enterprises increased by 16% compared with 437 in 2020; The total fund-raising was 522.9 billion yuan, an increase of 8.8% over the total fund-raising of 480.6 billion yuan last year.
Specifically, more than 70% of IPOs are issued in the form of registration system, and the number of IPOs and financing amount account for 75% and 66% respectively. The proportion of small and medium-sized IPOs further increased, with the number of IPOs below RMB 1 billion accounting for 77%, 4 percentage points more than that in 2020. In terms of quantity, the number of IPO on GEM ranks first. In terms of industries, the number and financing amount of technology, media and telecommunications industries ranked first, and the number and financing amount of biotechnology and health IPOs both entered the top five.
Liu Qihong, national managing partner of Deloitte China capital market service department, pointed out that the A-share market in 2021 showed the characteristics of accelerated issuance of new shares, substantial increase in the number of issued shares and decline in the average financing amount of individual shares, mainly due to three reasons: first, the reform of the registration system was beneficial to the A-share market, and second, the issuance speed of science and innovation board and gem increased steadily, Third, the opening of the Beijing stock exchange increased more vitality. The high proportion of IPO Financing on the science and innovation board and the gem shows that at this stage, China has accelerated the reform of the registration system to enable more new economic enterprises in the start-up stage to list and finance in the A-share market as soon as possible, so as to help enterprises grow rapidly.
While the number of new shares issued has reached a new high, the ecology of the capital market is also changing. Since this year, the capital market has made great efforts to promote the whole market promotion of the registration system and promote the formation of innovative capital. On the one hand, strengthen the responsibilities of intermediaries, strictly control the “entrance” of the capital market, adhere to the “hard technology” positioning of the science and innovation board, standardize the positioning of the gem to serve growing innovative and entrepreneurial enterprises, and prevent plate arbitrage; On the other hand, the Beijing stock exchange was established to create a service innovation oriented main position for small and medium-sized enterprises, strengthen the organic linkage with the innovation layer and basic layer of the new third board, deepen the coordinated development with Shanghai and Shenzhen Stock Exchange and regional equity market, and jointly create a good ecology for the development of multi-level capital market.
China Industrial Securities Co.Ltd(601377) chief economist Wang Han believes that the capital market has unique advantages in promoting the formation of innovative capital, stimulating entrepreneurship and improving incentive and restraint mechanisms. The capital market serves scientific and technological innovation and breeds new financing opportunities. A multi-level capital market system can provide all-round investment and financing services for scientific and technological enterprises of different types and different life cycles.
He Zhaofeng, managing partner of anyong Greater China listing service, said that the revision of the securities law and the introduction of the gem registration system, the optimization of the science and innovation board system, the establishment of the Beijing stock exchange, the return of pilot red chips and the transfer of selected layers of the new third board mean that China’s capital market is opening a new period.
With the deepening of the reform of the capital market and the continuous promotion of the reform, the return of several zhonggai shares to a has become a bright spot in the new share market. Recently, the most concerned by the market is the return of China Mobile to a shares. As the first listed company with red chip back to a, the effective subscription of IPO of China Mobile is 805.68 times. A-Shares are actively and enthusiastically pursued by China Mobile’s return feedback, which will become the largest IPO of A-Shares in recent 10 years.
implement the registration system in the whole market
market ecology continues to improve
Regulators have made it clear that the whole market will implement the registration system and constantly optimize the innovation environment for the formation of innovation capital. Looking forward to 2022, the road of capital market reform will follow the route of “creating conditions for the full implementation of registration system reform”.
At present, the conditions for the full implementation of the registration system have been gradually met. On the whole, a series of basic system reforms such as issuance and underwriting, listing, trading, continuous supervision, delisting and investor protection have achieved remarkable results, and the high-standard three-dimensional punishment system linking administrative punishment, civil compensation and criminal accountability has become more and more perfect. Three breakthroughs have been made in the pilot registration system of the science and innovation board and the gem: optimizing the conditions for issuance and listing, transforming the substantive threshold into strict information disclosure requirements as far as possible, and improving the inclusiveness of enterprises, especially science and innovation enterprises; The standards, procedures, contents, processes and results of audit registration shall be made public to enhance predictability; There are no administrative restrictions on the price and scale of new share issuance to eliminate unnecessary intervention.
In terms of tightening the responsibilities of intermediaries, in July this year, the CSRC issued the guiding opinions on urging securities companies to return to their duties when engaging in investment banking business under the registration system, urging securities companies to return to their duties when engaging in investment banking business such as recommendation, underwriting and financial consulting, so as to give full play to the role of intermediaries, especially securities companies as “gatekeepers” in the capital market, Promote the healthy and stable development of the capital market. In terms of investor protection, the civil compensation of the country’s first special representative litigation for securities disputes (the first securities class action) has been implemented, the Kangmei pharmaceutical case has ushered in the first instance judgment, and the investor compensation in the Kangmei pharmaceutical case has been paid in succession. Insiders said that the landing of the first civil compensation lawsuit of the special representative of securities disputes has solved the dilemma of difficult prosecution and expensive rights protection of small and medium-sized investors, and greatly reduced the cost of rights protection.
Shao Yu believes that the reform of the registration system is an important work in the capital market in the next step. It is a foregone conclusion that the registration system will cover the whole market in 2022. As a traction, it will become the main focus of key reform matters such as improving the quality of listed companies, improving the delisting mechanism, multi-level market construction, strengthening the responsibility of intermediaries, investment side reform, and improving the judicial system and mechanism of securities law enforcement, The basic system of the capital market will continue to be improved, and the capital market will continue to increase its support for key areas such as science and innovation, manufacturing and small and medium-sized enterprises.
Liu Qihong predicts that the Beijing stock exchange provides a new way for innovative small and medium-sized enterprises to be listed in China. In 2022, the A-share new share market will continue to grow with the support of the rising number of new shares on the science and innovation board, the gem and the Beijing stock exchange. Small and medium-sized manufacturing and technology enterprises will be the main source of new shares.
(Securities Times)
