It seems that it is common for listed companies to receive inquiry letters in the A-share market. According to the public information of Shanghai Stock Exchange, Shenzhen Stock Exchange and Beijing stock exchange, the reporter of Securities Daily found that as of January 21, 2022, a total of 60 companies had received inquiry letters from the exchange during the year. Among them, 13 were issued by Shanghai Stock Exchange, 46 by Shenzhen Stock Exchange and 1 by Beijing stock exchange.
Yang Delong, chief economist of Qianhai open source fund, said: “the inquiry letter has a warning effect on the leadership and shareholders of listed companies, which is conducive to preventing acts that harm the interests of small and medium-sized investors. At the same time, it also reminds investors not to blindly follow the trend and hype.”
\u3000\u3000 “The inquiry letter will involve many aspects of listed companies. It is mainly regulated according to the company’s business dynamics. Many companies cover up some facts or fabricate for their own purposes and can’t make real information disclosure. The regulators can effectively improve the symmetry of information disclosure by means of inquiry letters, which can also make the company feel pressure, so as to improve their self-examination ability and realize inquiry Urge the positive cycle of self-examination. ” An anonymous China Merchants Securities Co.Ltd(600999) sponsor representative told reporters.
Inquiry letters mainly include supervision letters, inquiry letters and concern letters. According to public information, most inquiry letters mainly cover major issues related to the company’s operation, finance, management, performance, letter phi and so on, especially hot spots and major issues concerned by the market.
“Among them, the attention letter generally serves as a reminder and supervision, requiring the operation and management of listed companies to comply with laws and regulations, and earnestly and timely fulfill the obligation of information disclosure.” Tian Yong, director of Guangdong Shengma law firm, explained.
Dynavolt Renewable Energy Technology (Henan) Co.Ltd(002684) in just 20 days since the beginning of the year, it has received four attention letters, becoming the company that received the most attention letters in the year. Shenzhen stock exchange mainly inquires about the company’s creditor’s rights and debts, so that the majority of investors can better understand the handling of its creditor’s rights and debts and improve the degree of information symmetry.
“Although there is no substantive economic penalty in the inquiry letter, it will affect investors’ judgment on the fundamentals of listed companies and have an impact on listed companies. It can achieve the effect of ‘strong supervision’ while reducing interference to market operation.” Shen Meng, executive director of Xiangsong capital, told reporters.
Tian Yong told the Securities Daily that sending inquiry letters is a common way of supervision. “The inquiry letter is generally an inquiry about whether the listed company violates the company law, the securities law and other laws and the administrative measures for information disclosure of listed companies and other regulatory provisions. Therefore, it contains the requirements for the listed company to supplement and disclose relevant information and verify relevant questions, which need to be clearly answered and explained by the listed company.”
The reporter combed the past situation and found that many listed companies will announce that they will postpone their reply after receiving the inquiry letter, which is very common.
Tian Yong said: “some listed companies choose to delay the reply to the inquiry letter. Except that a few are busy, it is generally the case that ‘there are problems and it will take time to correct the communication’. On the whole, the inquiry letter has played a great regulatory warning effect.”
“The delayed response phenomenon shows that some listed companies do not adapt to the new regulatory system and methods, and more preparations should be made for the regulatory rules centered on information disclosure.” Shen Meng said.
“With the continuous development and innovation of China’s multi-level capital market, the number, volume and category of listed companies are large, and the difficulty of supervision will increase accordingly. Through inquiry letters and other means, the supervision ability and strength of listed companies will be continuously strengthened.” Tian Yong added.
