On July 8, the SFC suddenly issued warning letters to six companies to be listed on the IPO. These six companies found different problems in the process of on-site inspection of IPO.
For example, the problems of Lu Huahong Jins new material are that there are some problems, such as failure to test the impairment of fixed assets, inaccurate accounting value of some fixed assets, inappropriate confirmation of some repair fees, inappropriate accounting treatment of some government subsidies, inconsistent disclosure of accounting policies for revenue recognition and receivable bills with facts.
Ju Rongningwus new material is due to the fact that it fails to disclose truthfully the environmental protection violations that continue to produce and operate after the expiration of the emission permit and the related partys lending behavior. The information disclosure of income recognition policy, third-party repayment, patent technology and trademark acquisition does not conform to the facts.
It is worth noting that the IPO status of these six companies includes withdrawn materials, pre-disclosed updates and feedback. Investment bankers expect that after the penalties imposed on six companies, the relevant intermediaries and sponsor representatives will be punished as well.
Strengthen IPO Inspection to Clear up Barrier Lake
In fact, the on-site inspection of IPO has become a normalization, and every year the SFC will carry out the inspection, but this round of inspection is particularly concerned by the market. Investment bankers say the underlying reason may be that the IPO has once again formed a barrier lake.
According to the data of the Securities Regulatory Commission, as of July 4, the number of IPO queuing enterprises awaiting trial has reached 501. Among them, the number of planned IPO companies on the main board is 186, the number of small and medium-sized boards is 104, and the number of GEM 211. In addition, the number of companies applying for listing on the GEM has reached 144.
Especially since June, the number of new IPO applicants has soared. Previously, it was felt that the signals released by regulators were loose, so many companies went to declare. Shenzhen, a securities investment banker told reporters.
Many investment bankers believe that the reason for the intense on-site inspection of the IPO may be to clean up the barrier lake. At present, more than 500 IPO queuing enterprises have formed a new round of barrier lake. Through the verification of IPO, pressure can be exerted on enterprises to form a deterrent force, reduce the number of declarations of IPO enterprises, and deter a number of enterprises that do not meet the requirements. Southern medium-sized brokerage investment bankers told reporters.
Source: Responsible Editor of 21st Century Economic Report: Han Yukun_NBJ11142