Another group of securities companies and sponsor representatives were punished.
On December 29, the CSRC disclosed a total of 9 punishment information on investment banking business, including 3 regulatory talks and 6 warning letters. Among the nine administrative regulatory measures, the subject of punishment involves three securities companies, namely China International Capital Corporation Limited(601995) , Wanlian securities and Sinolink Securities Co.Ltd(600109) .
Since the beginning of this year, the CSRC has regularly summarized the administrative supervision measures and self-discipline punishment measures taken by relevant departments, dispatched offices and self-discipline organizations in accordance with the law, and publicized them on the information publicity platform for illegal punishment of investment banking business quarterly. The purpose is to strengthen the market reputation constraints and urge the recommendation institutions to improve the practice quality.
3 securities companies were taken administrative supervision measures
There are three securities companies that have taken administrative supervision measures this time, namely Wanlian securities, Sinolink Securities Co.Ltd(600109) and China International Capital Corporation Limited(601995) .
Specifically, Wanlian securities, as the sponsor of Jiangxi Hulk ecological environment Co., Ltd. for the initial public offering and listing of shares, failed to perform due diligence and other violations, that is, the verification of the issuer’s monetary funds, related parties and related transactions was insufficient, and the issuer failed to find a large number of changes in bank flow, incomplete disclosure of related parties and related transactions There are defects in accounting basis and internal control. The CSRC requires Luo, the compliance person in charge of Wanlian securities and the person in charge of recommendation business, to accept the regulatory conversation.
China International Capital Corporation Limited(601995) has also taken administrative regulatory measures for regulatory talks. The CSRC found that China International Capital Corporation Limited(601995) in the process of recommending Lenovo Group Co., Ltd. to apply for listing on the science and innovation board, it did not diligently and responsibly perform sufficient verification procedures for the identification of the issuer’s science and innovation attributes, and mainly relied on the explanatory documents provided by the issuer to draw conclusive opinions. The relevant procedures and evidence obtained were insufficient to support the disclosure content, and failed to fully and accurately evaluate the issuer’s science and innovation attributes. The CSRC decided to take supervision and management measures for China International Capital Corporation Limited(601995) . In addition to China International Capital Corporation Limited(601995) , the sponsor representatives Wang, sun, Zhao, Xing and Xie were also required to accept the regulatory conversation.
While Sinolink Securities Co.Ltd(600109) received the warning letter. As the sponsor of the initial public offering and listing of Yangzhou Rixing Biotechnology Co., Ltd., Sinolink Securities Co.Ltd(600109) was not diligent and did not fully verify the issuer’s sales collection, internal control and other matters, and was taken out of the administrative supervision and management measures with the warning letter by the CSRC. The CSRC requires Sinolink Securities Co.Ltd(600109) to seriously find and rectify problems, establish, improve and strictly implement the internal control system, workflow and operation specifications of investment banking business, be honest, trustworthy, diligent and conscientious, and effectively improve the quality of investment banking business, Sinolink Securities Co.Ltd(600109) shall conduct internal accountability for the responsible persons in strict accordance with the internal accountability system, and submit a written Accountability Report to the local securities regulatory bureau.
16 recommendation representatives receive punishment
In addition to the administrative supervision measures taken by the above six recommendation representatives, 10 recommendation representatives were punished for violating the regulations when recommending projects.
Zou and Wang did not perform their duties diligently in the process of serving as the sponsor representatives of Yangzhou Rixing Biotechnology Co., Ltd. for the initial public offering and listing, and the verification of the issuer’s sales collection, internal control and other matters was insufficient. The CSRC issued a warning letter to them; In the process of serving as the sponsor representative for the initial public offering and listing of Anhui Yangzi Flooring Co., Ltd., Mr. Wei and Mr. Wang failed to be diligent and responsible, and the verification of the issuer’s internal control, project income and other matters was insufficient, so the CSRC issued a warning letter; Wu Moumou and Wu Moumou 2 were not diligent and responsible in the process of serving as the sponsor representative of Xiamen yaxun Network Co., Ltd. for the initial public offering and listing, and the verification of the issuer’s sales collection and other matters was insufficient, and the CSRC also issued a warning letter; In the process of serving as the sponsor representative for the initial public offering and listing of Jiangsu Jianpai agrochemical Co., Ltd., Feng and Li failed to be diligent and responsible, and the verification of the issuer’s notes receivable and other matters was insufficient, so they were issued a warning letter by the CSRC; In the process of serving as the sponsor representative for the initial public offering and listing of Guangdong Huaguan new materials Co., Ltd., Li and Zhang failed to be diligent and responsible, and the verification of the issuer’s customer type, period expenses and other matters was insufficient, so the CSRC issued a warning letter.
It can be seen that the above insurance agents are issued with warning letters due to the failure of diligence in recommending IPO projects, and the regulators have always strengthened the quality of recommendation. Since the beginning of this year, the CSRC will publicize the punishment information for violations of investment banking business every quarter, so as to further strengthen the market reputation constraints and urge the recommendation institutions to improve the practice quality. Investment bankers of a securities firm believe that in recent years, with the normalization of IPO on-site inspection and on-site supervision, regulatory audit has put forward higher requirements for the standardization of issuer’s finance and internal control and the practice quality of intermediaries. Only when intermediaries practice diligently and responsibly and enterprises standardize as soon as possible can they adapt to the registration system with information disclosure as the core.
The registration system takes information disclosure as the center, and truly hands over the option to the market. The quality “gateway” of listed companies moves forward, and the recommendation institutions must bear more responsibility for checking. In the middle of this year, the CSRC formulated and issued the guidance on urging securities companies to return to their duties in investment banking business under the registration system. In view of the prominent problems such as the generally low practice quality of intermediary institutions under the registration system, the imperfect system of systems and rules, and the weak market restraint mechanism, the CSRC adhered to the three principles of highlighting key points, supervising according to law, and addressing both symptoms and root causes The three dimensions of the market put forward key work tasks, and strive to be practical. At the same time, put forward work ideas on some long-term and complex issues such as clarifying the responsibility boundary of intermediaries, and gradually promote them.
The above investment bankers said that under the new regulatory environment, recommendation institutions should improve their political position and strengthen their responsibility. On the one hand, the recommendation institution shall increase the management and training of front-line business personnel, urge business personnel to strengthen the study of national policies, timely update business knowledge, grasp the latest regulatory spirit in the process of practice, practice their internal skills and comprehensively improve their professional ability; On the other hand, the recommendation institution shall strictly implement the relevant requirements of the internal control guidelines for investment banking business, form an organizational system with reasonable division of labor, clear rights and responsibilities, mutual checks and balances and effective supervision, strengthen the whole process control mechanism of quality control and core on project initiation and declaration, improve its check and balance role on the front desk of investment bank business, and give full play to the respective roles of “three lines of defense”.
(Securities Times)
