Regulators have successively introduced a number of measures-the capital market accurately assists enterprises to fight the "epidemic"

A few days ago, the capital market regulators successively introduced a number of measures to deal with the negative impact of the new crown pneumonia epidemic, provide precision financial services for epidemic prevention and control, resumption of production and the development of the real economy, and increase support for the resumption of production and recovery of physical enterprises. To help small and medium-sized enterprises through difficult times. Among them, strengthening the direct financing function of the capital market, placing support for the recovery and development of the real economy to a more prominent position, and responding to urgent issues such as debt repayment, capital turnover, and expanded financing for resuming production and resuming production, innovating and improving financial support methods to alleviate the epidemic situation Funding pressures that affect severe enterprises are a major policy highlight.

Strengthening the direct financing function

Strengthening market functions and increasing direct financing of enterprises is one of the policy highlights of the capital market in supporting the fight against epidemics and resumption of production in the war against epidemics. It is prominent in continuing to maintain the normalization of stock IPOs, implementing the revised refinancing system, and improving tolerance.

A few days ago, the CSRC issued three heavy documents on refinancing rules. The first is to streamline the issuance conditions and expand the coverage of GEM refinancing services. The second is to optimize non-public institutional arrangements and support listed companies to introduce strategic investors. The third is to appropriately extend the validity period of the approval documents, which is convenient for listed companies to choose the issuance window. A person concerned with the Securities Regulatory Commission said that the change was to “deepen financial supply-side structural reforms, improve the refinancing marketization constraint mechanism, strengthen the capital market's ability to serve the real economy, and help listed companies fight the epidemic and restore production”.

After the refinancing regulations were implemented, the market responded positively. With less than half a month's implementation, nearly 50 listed companies have successively announced plans to increase their income. A person in charge of the Securities and Futures Commission stated that, overall, the refinancing market operated smoothly and orderly after the new rules were disclosed. In recent days, in order to prevent "chaos after one release," the CSRC has precisely "patched" and rigorously formulated standards for strategic investors.

Anson Securities strategy report pointed out that out of the current 794 GEM companies, the asset-liability ratio of less than 4547 was 547, and the new refinancing rules will significantly expand the scope of GEM companies' participation in refinancing.

The active refinancing market will increase market vitality and resilience. Guosheng Securities said that loosening refinancing will inevitably attract medium- and long-term funds from various institutions and industrial capital to accelerate their entry into the market, providing them with entry opportunities and channels. The capital market will usher in a two-way expansion of the chip end and the capital end, and with the gradual improvement of the registration system and the exit mechanism, the capital market will be more healthy and mature, and it will better serve the real economy.

Yan Qingmin, vice chairman of the China Securities Regulatory Commission, said that the China Securities Regulatory Commission has given priority to supporting areas with severe epidemics and financing of companies involved in the fight against the epidemic. An Qingsong, Secretary of the Party Committee and Executive Vice President of the China Securities Industry Association, told reporters that the securities industry will give full play to the professional advantages of investment banks, increase financial advisory services to the medical and health industry, help related industries to increase production capacity, and fully protect medical drugs and health supplies. Supply.

The Shanghai Stock Exchange also stated that it supports scientific and technological innovation companies related to the epidemic prevention and control to be listed on the science and technology board, which is accepted immediately, and organizes professional reviewers who are familiar with the biopharmaceutical industry to focus on key issues and conduct rapid review.

Promote market mergers and acquisitions

Improving the quality of listed companies is a core task of maintaining healthy and stable development of the capital market.

FAW Car's merger and acquisition reorganization application was accepted by the Securities Regulatory Commission at the end of December 2019. After receiving a feedback to the Securities Regulatory Commission on February 5, this year, it received a notice from the Securities Regulatory Commission that it would be reorganized within 4 working days. Boya Bio's merger and acquisition reorganization application was accepted by the Securities and Futures Commission on February 7, and it received a notice from the Securities and Futures Commission within 2 working days. The FAW Car restructuring project belongs to the reform of state-owned and state-owned enterprises. The Boya Bio-restructuring Project is a small-scale rapid project of private enterprises. Industry insiders said that in a special period, advancing mergers and acquisitions is of great significance to improve the quality of listed companies and help listed companies become better and stronger.

Recently, regarding the impact of the epidemic on IPOs and mergers and acquisitions, the CSRC quickly made targeted arrangements. Yan Qingmin said that after the outbreak, due to on-site due diligence, audit assessment was difficult, and some companies' issuance and mergers and acquisitions were affected to some extent. In this regard, the CSRC has made targeted arrangements, such as relaxing the time limit for responding to feedback, reviewing the time limit for relaxation, and relaxing the time limit for mergers and acquisitions. "At present, three normals can be used to describe: normal issuance of approvals, normal progress of the review process, and normal progress of reorganization license acceptance." Yan Qingmin said.

Bond market opens "green channel"

On February 3, Wuhan-based listed company Xiandai Mingcheng (600136.SH) applied for a non-public issuance of corporate bonds not exceeding RMB 600 million, and the Shanghai Stock Exchange has completed its review. The person in charge of the overjoyed company told reporters that there is a "green channel" for debt issuance, giving enterprises full confidence in defeating the impact of the epidemic.

The accelerated approval of corporate bonds stems from the "Notice on Further Strengthening Financial Support for Prevention and Control of New Coronavirus Infectious Pneumonia" (hereinafter referred to as "the" Notice ") requirements to improve the efficiency of services such as bond issuance. The CSRC and the exchanges quickly implemented it, giving full play to the function of the capital market mechanism, giving priority to providing efficient and convenient financial services to relevant enterprises in severely affected areas, and helping support enterprises to overcome the epidemic.

Actively giving play to the financing function of the bond market, innovating ways for private enterprises to increase credit and debt financing tools, and lowering the threshold for the issuance of convertible bonds are also a highlight of the capital market's contribution to the real economy.

Guangdong East Sunshine Technology Holdings Co., Ltd. publicly issued 2020 corporate bonds (first phase) and completed bookkeeping. It is understood that this is the first single outbreak prevention and control company bond issued by a private enterprise in the country, and it is also one of the two single outbreak prevention and control company bonds in the country's first wholesale bank. The funds raised in this issue of bonds are mainly used to support the issuer in purchasing raw materials for the production of urgently needed materials for epidemic prevention and control.

A few days ago, Huadian International Power Co., Ltd.'s 1.551 billion yuan of green directional asset-backed notes (outbreak prevention and control bonds) underwritten by Industrial Bank successfully won the wholesale bank. The term of this epidemic-prevention green bond is 2.5 years, and the funds raised will be preferentially used to guarantee the power supply of green infrastructure construction and emergency repair of the power supply system for epidemic prevention and control in Hubei, Ningxia, Shandong and Inner Mongolia.

The Shanghai Stock Exchange has optimized the review process for corporate bonds in Hubei and other companies such as Wuhan Contemporary Mingcheng and Xiangyang Dongjin SDIC. It implements "special docking, special review, immediate report and immediate review, and special affairs." At the same time, it has established a green channel for the review of corporate bond and asset-backed securities issuance, fully connected with and supported the issuance of "outbreak prevention and control bonds" by relevant enterprises, and actively cooperated with local government bond issuance services during outbreak prevention and control.

In addition, the Shanghai Stock Exchange also speeded up the fund's review. In order to support the construction of public facilities such as transportation, communications, education, hospitals, and sewage treatment systems in Hubei Province, the Shanghai Stock Exchange-assisted China Merchants Fund reported on February 10 the first market-oriented “anti-epidemic debt-based debt insurance” in Hubei—China Merchants Local debt ETF in Hubei Province, and expedited processing through green channels.

Not only are exchanges issuing bonds to establish a "green channel", various bond market regulatory agencies have successively issued documents to support the normal operation of the bond market and related principal bond market financing. The funds raised are mainly used for epidemic prevention and control, and for financial institutions and enterprises in areas with severe epidemics. The financial bonds, asset-backed securities, and corporate credit bonds of the PRC have been registered and issued as "green channels." The China Fund Industry Association has also implemented green channel policies and simplified business processes for the filing of private equity funds and venture capital funds investing in medical equipment related to epidemic prevention and anti-epidemic, and research and development of vaccines and drugs, as well as asset management products established by securities and futures operating agencies.

Relevant companies that can currently use the "green channel" include: first, related entities that have been severely affected by the epidemic, these entities are either in areas with severe epidemics or industries that have a greater impact on the epidemic; second, companies involved in epidemic prevention and control, mainly Including the manufacture and procurement of key medical supplies and pharmaceutical products, scientific research, support for daily necessities, construction of infrastructure related to epidemic prevention, transportation and logistics, and public service. Experts said that the "green channel" policy, while providing financial support for enterprises to fight the epidemic, has also eased the short-term debt repayment pressure of enterprises, making the bond market financing channels of related enterprises more smooth and reducing financing costs. Improved financing environment.