The first IPO of the GEM registration system is rejected, and the registration system is not unconditional release

  Talking about stocks and gold

  The registration system will allow more IPO companies to enter the securities market at a faster pace, but it should be noted that the registration system is not an unconditional “release”.

  This year's Double Eleven is a landmark day for the ChiNext.

Will it be rejected in terms of technology? This is also the first list of rejected IPOs under the GEM registration system.

  Before Double Eleven, the GEM Listing Committee's 2020 review meeting had been held 43 times, and the meeting rate reached 100%.

Why did the 44th deliberation meeting of the GEM Listing Committee produce the first IPO of the GEM registration system?

There is a policy background, that is, on the day before November 11, that is, on November 10, the China Securities Regulatory Commission convened to implement the "Opinions of the State Council on Further Improving the Quality of Listed Companies" (hereinafter referred to as the "Opinions") to mobilize and deploy Meeting, in-depth mobilization and comprehensive deployment of the CSRC’s system of solidly promoting the improvement of the quality of listed companies.

The meeting deployed six major aspects to improve the quality of listed companies, the second of which is to properly control the "entry gate" and introduce fresh water to the market.

Deeply understand the original intention and mission of the registration system reform, and improve the quality of listed companies from the source.

The meeting also requested the Shanghai and Shenzhen Stock Exchanges to move forward, adhere to the positioning of the sector, and assume supervisory responsibilities in all links such as listing promotion and review.

In addition, the agencies dispatched by the China Securities Regulatory Commission should give full play to their territorial advantages, strictly enforce regulatory requirements, and do a good job of guidance, acceptance and on-site inspections.

  The creation of this first order is also a manifestation of the spirit of the mobilization and deployment meeting of the Shenzhen Stock Exchange, and it is also a manifestation of the implementation of the spirit of the State Council's "Opinions", using practical actions to secure the "gateway" for the stock market.

  In fact, this is also an important issue facing the implementation of the registration system, that is, how to improve the quality of listed companies under the registration system.

Regarding the reform of the registration system, not only has the authority for IPO approval been delegated to the exchange, more importantly, the conditions for companies to go public have been relaxed, and even the threshold for listing has been lowered, emphasizing the inclusiveness of the market.

Therefore, in the eyes of many people, the registration system is the "release system", allowing more IPO companies to enter the securities market at a faster pace.

But what needs to be noticed is that the registration system is not an unconditional "release".

  In a sense, it is a good thing whether the GEM registration IPO appears or not, which will help improve the quality of listed companies.

For example, when Netjin Technology was rejected, the GEM Listing Committee strictly checked the issuance conditions, listing conditions, and information disclosure requirements. The GEM Listing Committee considered that Netjin Technology failed to fully and accurately disclose relevant shareholders. The equity transfer and its capital flow and taxation status, the reasons for determining the actual controller, whether the ownership of the company’s shares held by the actual controller is clear, and the rationality of Wenshang Travel Group as a financial investor.

  Of course, as far as improving the quality of listed companies is concerned, whether or not one is given a warning is more important for the two exchanges and regulatory authorities to stick to the "entry" of the stock market for a long time.

  □Pi Haizhou (financial commentator)