In order to further optimize the pricing mechanism of new shares issuance and promote an orderly game between buyers and sellers, on September 18, with the approval of the China Securities Regulatory Commission, the Shenzhen Stock Exchange issued the "Implementation Rules for the Initial Public Offering and Underwriting of Securities on the Growth Enterprise Market (2021 Revision)" (below (Referred to as the "Implementation Rules for the First Issuance"), shall come into effect on the date of issuance. After that, if a prospectus or prospectus is published, and the issuance is initiated, the revised relevant regulations shall apply.

  The amendments to the "Implementation Rules for the First Issuance" mainly include four aspects: First, improve the high price elimination mechanism, and adjust the high price elimination ratio from no less than 10% to no more than 3%; second, cancel the IPO pricing and subscription time arrangements, The requirement for the number of investment risk special announcements; the third is to strengthen the supervision of price inquiry and quotation behavior, and clarify the regulatory requirements, violations and regulatory measures when offline investors participate in the inquiry. If suspected of violating laws and regulations or the provisions of the China Securities Regulatory Commission, report to the China Securities Regulatory Commission for investigation and punishment. Or the judicial authorities will pursue criminal responsibility in accordance with the law; fourth, in line with the revision of the Securities Association of China "Regulations for Underwriting of Initial Public Offerings under the Registration System", cancel the relevant requirements that the issue price exceeds the valuation range of the investment report and the difference needs to be explained.

  It is understood that from August 20 to September 5, the Shenzhen Stock Exchange publicly solicited opinions on the revision of this rule, and extensively listened to the voices of all parties in the market through research and discussion.

During the consultation period, more than 30 market entities, including securities companies, institutional investors, enterprises and individual investors, submitted their opinions and suggestions.

All parties fully recognized this revision, believing that it responded to market concerns in a timely manner, and demonstrated the determination of the regulatory authorities to deepen the market-oriented reform of the pricing mechanism for new stock issuance.

The Shenzhen Stock Exchange attaches great importance to the feedback from market entities, carefully studying and categorizing them one by one. Most of the opinions and suggestions have been fully considered in the preliminary demonstration or adopted in the revision process.

  At the same time, according to the opinions and suggestions of most market entities on the implementation level of the specific ratio of high prices, and the lower value of the "four values", after full communication and consultation, the Shenzhen Stock Exchange’s GEM Stock Issuance Standards Committee put forward the "Regarding the Promotion of New Shares" The Proposal to Balance the Game and Ensure the Stable and Orderly Issuance: In the initial adjustment of the "Implementation Rules for the First Issuance", the first is that the high price elimination ratio shall not exceed 3% and not less than 1%; the second is that the underwriters and issuers should comprehensively multi-factor prudential and reasonable pricing. If the pricing exceeds the lower of the “four values”, the exceeding margin is not more than 30%; third, offline investors increase their investment in new stocks and provide objective and professional independent quotations.

In this regard, the Shenzhen Stock Exchange fully respects and supports the above-mentioned initiatives, and will actively implement relevant arrangements to facilitate the practical operation of issuers, underwriters and offline investors; at the same time, it will work with the ChiNext Stock Issuance Standards Committee to pay attention to market implementation and continue to study, demonstrate, and Adjust the relevant ratio requirements in due course.

  Next, the Shenzhen Stock Exchange will continue to fully implement the "system building, non-intervention, and zero tolerance" policy and the "four reverence, one force" requirements, adhere to the "open-minded, transparent, honest, and strict" work philosophy, and pay close attention to the dynamics of the system's operation , Continue to evaluate and optimize, strengthen process supervision, urge both buyers and sellers to earnestly perform their duties, make independent and objective quotations, prudent and reasonable pricing, improve the level of marketization of issuance pricing, jointly maintain the order of new stock issuance, give full play to the function of optimizing the allocation of factor resources, and provide better services The overall real economy and national strategy.

(Headquarters CCTV reporter Wu Huijun)

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