The stock exchange supports new measures to support epidemic prevention and control!
On the afternoon of April 17, the Shanghai Stock Exchange and the Shenzhen Stock Exchange successively published on the official website “About the default of stock pledged repurchase transactions through agreement transfers. Notice on Disposal of Related Matters “. The “Notice” makes it clear that if the stock pledge agreement expires during the epidemic situation, the relevant enterprise or individual may choose to apply for an extension. If the relevant enterprise or individual does have a demand for breach of contract, it can also be dealt with in accordance with the Notice.
The Shanghai Stock Exchange stated that this move is to support the prevention and control of the stock pledge risk of listed company shareholders, actively support the prevention and control of new coronavirus infection pneumonia, and ensure the stable and healthy development of the capital market .
Shenzhen Stock Exchange said that this time when the “Notice” is issued, it will adjust the quantity ratio and price range of the agreement transfer under the premise of strictly restricting the applicable conditions to further support the parties The implementation of bail-out measures will further alleviate the risk of stock pledge from the institutional level, and create a good policy environment for bail-outs through precise implementation, which will help optimize the equity structure of listed companies and effectively resolve the risk of stock pledge.
On February 2, the person in charge of the relevant department of the China Securities Regulatory Commission mentioned in an interview that the epidemic situation objectively caused the business activities and cash flow of some enterprises and individuals. Temporary impact. In order to alleviate the liquidity difficulties of related companies and individuals and reduce market impact, it was decided to take the following measures. The stock pledge agreement expires during the epidemic prevention and control period. Customers who apply for extension due to difficulty in repayment, such as customers in Hubei ( That is, enterprises registered in Hubei Province or residents residing in Hubei Province), can apply for an extension of 6 months, and the securities company will assist in the extension. If it is a customer in other regions, it can negotiate 3 to 6 extensions with the securities company month.
The Shanghai Stock Exchange stated that the relaxation of the requirements for the handling of agreement transfers involved in the default disposal of stock pledged repurchases is a “supervisory portfolio” to alleviate the risk of stock pledges of listed companies one. The release of the “Notice” provides enterprises with more options for disposal of stock pledge defaults due to the epidemic situation and other factors, which is helpful to help them go light.
Specifically, what conditions are met for the transfer of stock pledged repurchase default settlement agreement, can I submit an application to the two exchanges?
The third requirement of the Notice must meet three conditions.
First, it is planned to transferLet the stock be the initial transaction of the stock pledged repo transaction or the supplementary pledged stock of the merger management, and the pledge registration of the stock to be transferred has been over 12 months;
Second, submit At the time of application for agreement transfer, the pledgor of the transaction was a shareholder holding more than 2% of the shares of the listed company;
Acceptance situation.
It is worth mentioning that, in order to prevent the impact of default settlement through centralized transactions on the market, this “Notice” on the premise of strictly restricting the applicable conditions, Targeted provisions have been made for the default disposal of stock pledged repurchase by means of agreement transfer. On the one hand, the lower limit of the single transfer ratio was reduced from 5% to 2%. On the other hand, the transfer price limit was appropriately relaxed, and the lower limit of the transfer price was adjusted from the original 10% to 30%.
Article 4 requires that the relevant parties apply for the transfer of the stock pledge repurchase default settlement agreement, and the individual transferee ’s transfer ratio is not less than 2% of the company ’s total shares Except that the parties to the transfer have actual control relationships, are controlled by the same controller, and are otherwise stipulated by laws and regulations.
The transfer price of the stock pledged repurchase default disposal agreement shall not be less than 70% of the closing price of the stock on the trading day before the signing date of the transfer agreement.
The Shanghai Stock Exchange stated that the purpose of this regulation is to provide greater negotiation space for both parties to the transfer and to improve the convenience of default disposal of stock pledged repo.
While providing assistance, the two exchanges also made certain information disclosure requirements for handling related applications. Article 5 stipulates that both parties to the transfer shall disclose prompt notices of the transfer matters of this agreement through the listed company before applying for the transfer of the default disposal agreement for stock pledge repurchase.
In addition, if the submitted materials do not meet the true, accurate and complete requirements or violate the commitments, the Exchange will take corresponding regulatory measures or disciplinary action.
According to surging news reporters, the default risk of stock pledged repurchase in the current market is actually not large, and the overall scale is controllable.
The CSRC also revealed in an article in early February that the current scale of stock pledge business has steadily declined, and the balance of on-site stock pledge financing was 0.88 trillion yuan, down by more than 45% from the peak, most of the financing period is 1 to 3 years, the overall performance guarantee ratio is about 213%; the balance of financing and securities lending in the whole market is about 1.05 trillion yuan, accounting for the market value of A shares in circulation 2.13%, the overall maintenance guarantee ratio is more than 280%, the stock financing balance at 50 times the listing earnings ratio has not accounted for more than one third, and the average daily closing amount of the entire market since 2019 is about 20 million yuan. The above business has a certain margin of safety, and the risk is generally controllable.