China Securities Regulatory Commission: classified supervision and precise supervision of first-time enterprises
China News Agency, Beijing, April 24 (Reporter Chen Kangliang) The China Securities Regulatory Commission announced on the 24th that in the next step, in order to improve the relevance and effectiveness of the inspection work, the CSRC will address the issues under review while conducting a comprehensive inspection Adopt special inspection methods to improve the effectiveness of supervision, and classify and accurately supervise the first-time (initial public offering) enterprises.
On the same day, the China Securities Regulatory Commission released the results of classified processing of some companies applying for the main board, small and medium board, and GEM starting companies based on the 2019 on-site inspection.
According to the relevant person in charge of the China Securities Regulatory Commission, since June 2019, the China Securities Regulatory Commission has launched on-site inspections of 86 start-up companies in two batches. Up to now, 84 enterprises have completed the inspection work, and a total of 30 have withdrawn their applications to terminate the examination. For enterprises that have completed on-site inspections, the CSRC will classify them according to the nature of the problem and the severity of the circumstances as follows:
One is to take over and investigate and handle the transfer of an enterprise, and take supervision measures that do not accept the company's stock issuance application within 36 months. The main problems of the company include a large number of changes to the name, summary, and detailed account records of bank counterparties in 2016-2018.
The second is to adopt 12 regulatory measures to issue warning letters. This type of enterprise is mainly involved in the issue that some customers' sales return funds come from the issuer or its related parties.
The third is to take measures to focus on auditing, supervise and rectify accounting treatment and internal control issues for 48 companies. Such enterprises mainly have problems such as inadequate revenue recognition, insufficient disclosure of related parties and related party transactions.
The fourth is to terminate the review process for 23 other companies that have applied for withdrawal. Such enterprises generally have problems such as insufficient effectiveness of internal control system and non-standard accounting basic work. If they make subsequent declarations, they will still focus on the implementation of their rectification measures.
Fifthly, 21 sponsors, 17 accounting firms and 7 law firms that have problems with the quality of practice have initiated relevant measures based on the circumstances.
According to the above-mentioned person in charge table, the on-site inspection system of the first company has been officially implemented for more than three years, which has a significant effect on purifying the market environment and improving the quality of listed companies. The CSRC will conduct on-site inspections of nearly 200 enterprises, classify and deal with the problems found in the inspections, and adopt administrative supervision measures, filing audits, and administrative punishment for the start-up enterprises and intermediaries with serious problems, and disclose information. Violation of laws and regulations maintains a high-pressure situation, adheres to strict audits and strict quality control, and effectively reduces the company's "declaration of disease, rush to occupy space" and other situations. (Finish)