This article is from WeChat public account: Economic Observer (eeee-com-cn) , author: Cheng a true title FIG from: FIG insect

From the partner of the intermediary agency to the member of the issuance committee, this role change has made many market people envy and covet, but only when you are in it knows that “the heart is actually very hard”. At this moment, the market looks forward to the transformation of the issuance system again. The implementation of the registration system also means the end of the old era of China’s stock issuance system and the beginning of a new era.

“Suddenly tense, my mind was blank, and the original thoughts suddenly disappeared.” Mr. Chen, a sponsor representative with many years of investment bank project experience, recalled the first time he brought an IPO project to the meeting. Facing the questions thrown by the members of the review committee, whether he was a rookie in the workplace or a veteran of the investment bank, his nervousness was his most direct feeling when he attended the meeting. ^

Most of the sponsor representatives like him don’t know that the person who sits opposite makes him nervous-a member of the stock issuance review committee. Issuer “) , in fact, there is a lot of pressure. An intermediary who once served as a member of the review committee frankly told reporters that the period when he was the member of the review committee was the most stressful day in his career. From the partner of the intermediary agency to the member of the issuance committee, how many people in the market have envy and coveted this change of role, but only by being in it knows that “the heart is actually very hard”.

For companies planning to issue stocks for listing, the weekly SFC issuance committee meeting is a moment of destiny. The issuer is the “examiner” at the end of the enterprise’s road to the capital market, and the “examiner” with the greatest power. The joys and sorrows of passing and failing, in the rounds of trials, round and round reincarnation, the story of the IPO is constantly being interpreted.

At the beginning of 2020, some stories on the capital market have just begun, and some stories are ending. On March 1,The new “Securities Law” has come into effect, and China’s capital market will also usher in a subversive change-the full implementation of the registration system and the cancellation of the issuance review committee system; the specific scope and implementation steps of the securities issuance registration system shall be prescribed by the State Council. It is only a matter of time before the issuance review committee system in China ’s capital market is about 26 years old.

As early as 7 years ago, the Economic Observer reported that Guo Shuqing, then chairman of the China Securities Regulatory Commission, had thrown a shocking question in the market about whether an IPO is not acceptable. However, the capital market is changing rapidly and ups and downs, and the reform of China’s stock issuance system has been difficult. In 2015, the National People’s Congress authorized the State Council to adjust the relevant provisions of the securities law in the implementation of the reform of the issuance and registration system of stocks, and started this round of amendments to the securities law. From the first trial to the fourth trial, the regulations of the registration system were added and deleted, and deleted and added, and the supervision was also pinching the scale between encouraging innovation and strict supervision.

At this moment, the market looks forward to the transformation of the issuance system again. The implementation of the registration system also means the end of the old era of China’s stock issuance system and the beginning of a new era.

Li Shuguang, Dean of the Graduate School of China University of Political Science and Law and a member of the Third Session of the China Securities Regulatory Commission’s Main Board Issuance Review Committee, said, “The approval system is to believe in the wisdom of the issuance committee, but no matter how good the wisdom is, the wisdom of the market. Let every market Subject, let its wisdom and rationality, and compliance with legal rules be fully reflected, this is the nature of the registration system. “

Responsibility and pressure

The aforementioned former members of the review committee told reporters, “Becoming a review committee member bears a great deal of responsibility. People who come in from the market are more awed by the market. They are very concerned about whether the company is really good or fake. I am afraid that the election is wrong. However, under this system, the decision-making power is left to a few people. It is up to you to decide whether a company can enter the capital market. You often doubt yourself. This pressure is really unbearable.

“A lot of people don’t want to do that position.” Recalling the days when he was a member of the review committee, another former reviewer who did not want to be named was also very emotional. In the beginning, it was an honor for him, and later it was a great responsibility.

Under the current issuance review system, a meeting of issuance review committees composed of seven members of the issuance review committee is held on a regular basis. Only IPO companies that have obtained 5 or more positive votes can successfully launch. In 2019, the eighteenth issuance and review committee held a total of 213 issuance meetings. A total of 247 companies that reviewed 280 companies passed the initial launch, raised more than 250 billion yuan, and the approval rate was 88.21%.

Wind countAccording to reports, since the launch of the review committee system from 1993 to 2019, a total of 3,712 companies have successfully launched, and raised 3.21 trillion yuan. With the exception of a few science and technology board companies listed on the registration system, the vast majority of the initial launches are completed by the issuance review committee.

The issuance and review committee system, established in 1993, has undergone two transformations before moving from an administrative-led approval system to a more market-based approval system. Many veterans of investment banks recalled that the quota system before 2000 had been booing.

The former issuance committee members from the above-mentioned intermediary institutions lamented, “The audit system was also the best choice at the time. Many of the examination committee members came from the front line, had a professional background, and were more fair. The SFC and the issuance committee There are restrictions and complementarities between the two committees. After the initial review and re-issuance, it can basically guarantee that the selected companies are 80% to 90% right.

There have also been many changes in the selection of reviewers. In 1993, the members of the Development and Examination Committee were 20 members for a term of one year, and the list was kept secret. In 2003, the members of the issuance and review committee were held every two years, with a total of 80 members, and secret ballots were adopted when voting. Subsequently, the number of members was reduced from 80 to 25, and the voting method was changed from secret ballot to registered ballot.

No matter how the number of members, term of office, and voting methods change, the nature of the review has not changed. This also means that in the financing of hundreds of millions of dollars, it may be dominated by the personal color of members.

“Everyone has their own personality characteristics, professional habits, and opinions are different. They can only make judgments based on their own knowledge framework. The limitations are very large. It is more exaggerated to say that members are in a good mood these days. The results of the audits are also very different. “The former issuer of the above-mentioned intermediary agency said that although sometimes bad luck, they encountered counterfeit companies; sometimes there were some projects that they rejected, and then they went public, resulting in secondary market stock prices. He did well, and asked himself whether he would regret it or not.

“It is impossible to guarantee that every project can be understood and understood, but it is not necessarily a good company. The most important thing to be a member of a review committee is empathy,” he said.

Becoming a member is not as beautiful as the outside world thinks. “Once you become a member of the review committee, you will not be trusted at first, and you will need to face all-round supervision. It may look terrible on the outside, but it is actually trembling. The requirements for the review committee are too high, and too much responsibility is placed on the review committee. Members, “said the former members of the aforesaid committee, who declined to be named.

The randomness of opening and closing of IPOs has led to the inability of the market to have stable expectations. There has also been a large difference in meeting rates. Listed companies, investment bank personnel, and intermediary agencies often feel “very insecure” when they participate in conference projects. “. Enterprise first