Just now, more than 40 companies to be listed have been suspended due to intermediaries being filed by the China Securities Regulatory Commission, involving 4 IPO companies on the Science and Technology Innovation Board, 31 IPO companies on the Shenzhen Stock Exchange, and 9 IPO companies on the Beijing Stock Exchange.

  The above-mentioned enterprises "stepped on the thunder" Beijing King & Wood Mallesons Law Firm ("King & Wood Mallesons"), ShineWing Certified Public Accountants (Special General Partnership) ("ShineWing"), and Sino-German Securities Co., Ltd. (referred to as “Zhongde Securities”) and other three institutions, some of these companies that have suspended the review are in the state of inquiry, and some have already submitted registration applications.

  Sino-German Securities has been filed by the China Securities Regulatory Commission and is related to LeTV.

On January 18, Shanxi Securities issued an announcement that the China Securities Regulatory Commission decided to file a case against Zhongde Securities for its sponsorship business in LeTV's 2016 non-public offering of stocks.

According to the market network, King & Wood Mallesons and ShineWing are also related to this.

  The Securities Times reporter learned that there have also been cases where IPO companies have been dragged down by intermediaries to suspend the review. According to practice, the sponsor of the issuer has been investigated by the administrative organ for suspected violations of laws and regulations. If the case has not been closed, the sponsor can complete its sponsorship of the issuer. After the review of the work, the application is resumed for review.

There have also been precedents for companies planning to list to replace intermediaries.

More than 40 companies planning to go public have been suspended for review

  As of 10:00 p.m. on the 26th, a total of 44 IPO companies had been suspended due to intermediaries being filed by the China Securities Regulatory Commission. The reasons for the suspension of the company’s review were related to the three intermediaries, involving King & Wood Mallesons, ShineWing and Sino-German Securities.

  Among them, among the companies whose review was suspended, the companies in the inquiry stage were the most, including Saiwei Times, Maxima, Xinghe, Southeast Electronics, Keyuan Pharmaceutical, etc.

Some companies are in the state of acceptance, including Mingyang Electric, CIMC Huanke, Lianzhong Information, Guangdong Jianke and many other companies.

Some companies have already submitted registration applications, including Yuandao Communication, Huada Jiutian, Fantuo Digital Innovation, Xinjufeng, Xianglou New Materials and many other companies.

  Because Jindu Law Firm has participated in many projects, nearly 30 IPO companies have been suspended for review.

  The large-scale suspension of censorship this time may be related to LeTV.

On January 18, Shanxi Securities announced that its holding subsidiary Zhongde Securities had received the "Notice of Filing a Case" from the China Securities Regulatory Commission.

Due to the sponsorship business of Sino-German Securities in LeTV's 2016 non-public offering of shares, the China Securities Regulatory Commission filed an investigation against Sino-German Securities.

  The day before the above-mentioned filing announcement was released, Shanxi Securities also issued an announcement saying that Zhongde Securities, a holding subsidiary, received a civil complaint from the Beijing Financial Court, and the cause of the action was a dispute over liability for securities misrepresentation.

Two thousand plaintiffs including Shanghai Junying Asset Management Partnership (Limited Partnership) filed a civil lawsuit against 21 defendants including LeTV Information Technology (Beijing) Co., Ltd., requesting LeTV to compensate for the investment losses caused by its misrepresentation. 4.571 billion yuan, requiring the other 20 defendants to bear joint and several liability.

  LeTV's 2016 non-public offering of shares constituted a fraudulent offering was officially identified by the "Decision on Administrative Penalty" issued by the China Securities Regulatory Commission on April 12, 2021.

The Administrative Penalty Letter pointed out that due to the ten years of financial fraud from 2007 to 2016, LeTV’s IPO-related documents submitted and disclosed and its annual reports from 2010 to 2016 contained false records, failed to disclose related transactions as required, and failed to disclose that it was LeTV Holdings The company provided guarantees, and did not truthfully disclose that Jia Moufang and Jia Yueting fulfilled their loan commitments to listed companies. In 2016, the non-public offering of stocks constituted a fraudulent offering and other illegal facts. The CSRC made administrative decisions on 15 responsible entities including LeTV and Jia Yueting. Penalties, including a fine of more than 240 million yuan on LeTV, and a fine of more than 241 million yuan on Jia Yueting.

  Sino-German Securities, ShineWing, and King & Wood Mallesons are all intermediaries that provide services for LeTV's 2016 non-public offering.

  On January 20, Xinghe shares, which applied for an IPO on the Growth Enterprise Market, was cancelled on the eve of the meeting, and it should have been officially listed on the GEM Review Committee for review on January 21.

At that time, the market speculated that the intermediary agency of Xinghe Co., Ltd. might trigger a regulatory filing.

How long to resume after suspending review

  According to Wind data, Sino-German Securities has 4 IPO projects under review, ShineWing has 23 IPO projects under review, King & Wood Mallesons has 35 IPO projects under review under the registration system, and 12 companies plan to list on the Shanghai and Shenzhen main boards.

Follow-up or IPO projects will issue announcements of suspension of review.

  According to the regulations, for an enterprise under review, if the sponsor of the issuer has been investigated by the administrative organ for suspected violation of laws and regulations, and the case has not been closed, the sponsor may apply for resumption of the review after the sponsor has completed its review of the issuer's sponsorship work.