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Investment bank on-site work suspended due to the epidemic insiders say the business impact is limited

category:Finance
 Investment bank on-site work suspended due to the epidemic insiders say the business impact is limited


Researchers said that the pace of IPO and refinancing business in the A-share market may slow down, and the stock underwriting business of securities companies will be under pressure in the first quarter. However, with reference to the acceleration of IPO process after the end of the SARS epidemic, and in the context of the continuous promotion of the current registration system reform, there are still many bright spots in the investment banking business of securities companies throughout the year.

Investment bank site visit suspended

The investment banking business of securities companies is regarded as the engine of the business of securities companies. A lot of on-site work needs to be done during the work, and face-to-face communication with enterprises, listed companies and other customers is required.

How will the outbreak affect the development of investment banking? The head of an investment bank of a securities firm told the securities times that the approach of his securities firm is that some IPO projects supplement the annual report normally, some projects that are not particularly urgent are postponed, and the visit work is not suitable now. The person in charge also said that in specific matters, the investment bank will consider the needs of customers as a whole, and both sides will weigh various factors to discuss whether the progress of specific projects is suspended.

According to the above person in charge, generally speaking, projects under review can be considered as urgent projects, because even if the regulatory review process is postponed now, some issuers may want to prepare all materials faster and queue up as soon as possible after the normal review is started.

According to wind statistics, as of February 4, there were 443 IPOs (including accepted, inquired, fed back, disclosed and updated, suspended review and suspended voting) in total, of which 18 sponsors were reviewing more than 10 IPOs (excluding joint sponsorship), CSCI securities and CITIC Securities had more than 30 projects, and China Merchants Securities had more than 30 projects Securities, Minsheng securities and Haitong Securities have more than 20 projects under review.

Generally speaking, the projects in the coaching period are not too urgent. According to statistics, as of February 4, there are 1799 enterprises in the stage of guidance filing and registration, and 12 sponsors have more than 50 projects in the guidance period, including 97 projects in the guidance period of CITIC Securities, and more than 70 projects in the guidance period of China Merchants Securities, Guangfa Securities, Haitong Securities and China construction investment.

The progress of these projects needs to be properly arranged after the investment bank and the issuer communicate again according to the current situation.

Little effect caused by short-term delay

In the specific projects, how much influence does the working state of the front-line employees of investment banks suffer?

According to the industry practice, the work of investment banks at the beginning of the year is not heavy. After the financial data of audit institutions are issued, the recommendation institutions and financial consultants can do the follow-up work. For example, the newly declared IPO projects should be reported to the CSRC or the exchange, and the audit reports are needed to write the prospectus; the project team should Only when the audit report is published can we visit customers and suppliers to verify the authenticity of the data; only when the audit data is released can we update the prospectus.

According to the latest regulations of the CSRC, the current progress of annual report audit is delayed. If the short-term delay has little impact, and if the epidemic development causes a long delay, the follow-up work of investment banks will be greatly affected, the representative said. He also said that at the regulatory level, IPO and M & A projects will be reviewed to see if they will be suspended or normally carried out, and follow-up regulatory notices will be required.

An M & A and restructuring personage of a large securities firm in the northern region also believes that if it is only postponed for a week or two, the estimated impact on the projects that have been successfully developed and are being implemented is very limited.

The above-mentioned Baodai also mentioned that projects in different industries are affected differently, such as pharmaceutical IPO projects, whose main customers are hospitals. In the current situation, it is difficult to carry out the visit work, which may have a greater impact; catering and tourism industries, which are greatly affected by the epidemic, are not the key industries to sprint for IPO, but due to the performance drag, the progress of refinancing projects in these two industries may be Affected.

As a whole, the investment banking business is not affected much, but projects in Hubei may be suspended. In terms of geographical distribution, there are 5 enterprises under review in Hubei and 50 enterprises in the counseling and filing stage, accounting for a relatively small proportion. According to BOCI Securities Research Report, due to the impact of the epidemic, market volatility, downward market trading activity and high liquidity risk coexist. Under the guidance of the regulatory authorities, the pace of IPO and refinancing business in the A-share market may slow down, and the equity underwriting business of securities companies will be under pressure in the first quarter. However, with reference to the acceleration of IPO process after the end of the SARS epidemic, and in combination with the current registration system, it is comprehensive Under the background of continuous reform, there are still many bright spots in the investment banking business of securities companies. According to CSCI Securities Research Report, based on SARS experience, it is speculated that investment banking business may be impacted in the month when the market is closed, and the remaining impact will be slowly realized in the year. Source: responsible editor of Securities Times: Yang bin_nf4368

As a whole, the investment banking business is not affected much, but projects in Hubei may be suspended. In terms of geographical distribution, there are 5 enterprises under review in Hubei and 50 enterprises in the counseling and filing stage, accounting for a relatively small proportion.

According to BOCI Securities Research Report, due to the impact of the epidemic, market volatility, downward market trading activity and high liquidity risk coexist. Under the guidance of the regulatory authorities, the pace of IPO and refinancing business in the A-share market may slow down, and the equity underwriting business of securities companies will be under pressure in the first quarter. However, with reference to the acceleration of IPO process after the end of the SARS epidemic, and in combination with the current registration system, it is comprehensive Under the background of continuous reform, there are still many bright spots in the investment banking business of securities companies.

According to CSCI Securities Research Report, based on SARS experience, it is speculated that investment banking business may be impacted in the month when the market is closed, and the remaining impact will be slowly realized in the year.