The Red Line of Science Creative Board System: 29 Private Equity Over-subscription Penalized

category:Finance
 The Red Line of Science Creative Board System: 29 Private Equity Over-subscription Penalized


From the specific entries of the Management Rules, Article 15, paragraph 11 clearly stipulates that when an off-line investor and relevant staff participate in an off-line inquiry for the first issue of shares of the Section Creative Board, they shall not engage in the following acts: the quantity of the proposed purchase is not reasonably determined, and the amount of the proposed purchase exceeds the total assets or the scale of funds of the target of the allocation. Article 4, paragraph 5, stipulates that a private equity fund manager registered as an off-line investor in the initial public offering of stocks for a scientific and innovative Board shall possess certain strength in asset management: the total scale of products registered by the private equity fund manager in the China Securities Investment Fund Association in the last two quarters is more than 1 billion yuan (including) and has been in the past three years. At least one of the products under management has a life of two years or more; the scale of private equity products applied for registration should be more than 60 million yuan (including), which has been filed by the China Securities Investment Fund Association and entrusted to a third-party trustee to independently trust fund assets. Among them, the scale of private equity fund products refers to the net assets of fund products.

Regulators have set the red line of the system. Why are there still some institutions that have loopholes? Ge Shoujing said that the loopholes may mainly come from the illegal sides poor use of the rules and inadequate scrutiny of the qualifications. Firstly, we should lay down new rules. Category C investors need not pay in advance or freeze new funds to participate in the offshore tapping of GEM. Illegal institutions arbitrage by subscribing stocks that exceed the size of the companys real assets without prior payment or freezing rules. Secondly, the review of online inquiries conducted by sponsors is not rigorous enough, which may leave room for irregular operations. The fundamental reason is that the irregular bidding agencies are eager to achieve quick results.

The principal underwriter should strengthen the examination of the qualifications of the allotments in the future. In addition, it is wise for regulators to impose strict penalties on violators and restrict their allotment qualifications. Ge Shoujing said.

Source: Liable Editor of Securities Daily: Yang Qian_NF4425