On April 7th, the Shenzhen Stock Exchange’s Minsheng website released four binding letters, providing written guidance to four new stock quotation institutions.
According to industry insiders, in addition to the aforementioned four institutions, the Shenzhen Stock Exchange has also given warning to two other institutions with relatively minor violations.
These four newly listed companies that have been notified in writing are Qianhai Life Insurance Co., Ltd., Beijing Zhuojian Private Equity Fund Governance Co., Ltd., Jiashi Resource Governance Co., Ltd., and Guangdong Tianchuang Private Equity Securities Investment Fund Governance Co., Ltd.
The interface message noticed that the binding letter is mainly related to two aspects: first, the formulation and implementation of internal control systems are incomplete, and second, the valuation and pricing basis are not sufficient, and the pricing individual decision-making system is imperfect.
If the formulation and implementation of the internal control system are incomplete, the regulatory letter issued by the regulatory authorities to Qianhai Life Insurance pointed out that the company has not clearly defined the key manipulation methods for new stock subscription, and the department’s important manipulation key has not been allocated with A and B roles or a review system; There is no established regulatory inspection system for offline inquiry and allocation business, and no communication equipment control system for quotation informed personnel other than traders has been established.
Guangdong Tianchuang Private Equity has a record of insufficient valuation and pricing basis, as well as an imperfect decision-making system for individual quotations. The Shenzhen Stock Exchange pointed out that it did not insist on studying the process of complaint approval; The department’s research and complaint did not analyze the essence of financial data, dividend talent, etc., and the process of leading individual items was not analyzed. Failure to adhere to the company’s internal control system and insist on approval procedures before the final quotation; The record of the resolution plan process for the final affirmative quotation is missing.
Beijing Zhuojian’s private equity risk management system is not perfect, and the pace of understanding risks such as information leakage and price deviation is insufficient; The request for price change method and data archiving is unclear.
In addition, the Shenzhen Stock Exchange pointed out that the main essence of Jiashi Resources’ research and complaint is to simply extract information such as the prospectus of the publisher; The valuation interval lacks a rigorous and complete logical guidance process, and the assertion of departmental valuation intervals contradicts the coherent logic. The pricing team members are inconsistent with internal rules and requests; There is a risk of individual employees making investment decision plans independently in the final quotation, and the performance of individual decision plans is insufficient; Record of individual decision-making process and resolution plan for final quotation based on missing information.
The relevant statements of the four institutions mentioned above did not comply with the relevant language standards and requirements of Article 18, Article 20, Article 24, Article 25, and Article 26 of the “Regulations on the Governance of Offline Investors in Securities for the First Time Public Announcement”, and complied with the relevant provisions of Article 3, Article 11, and Article 12 of the “Shenzhen Stock Exchange Detailed Rules for the Disclosure of Securities for the First time and Underwriting Operations”. According to relevant regulations, the Shenzhen Stock Exchange adopts a self-discipline and restraint approach based on written instructions for the four institutions mentioned above.
The Shenzhen Stock Exchange pointed out that the violations pointed out in the joint discount decision documents of the four relevant institutions will be compared to the rules and requests related to the initial public offering of stock quotes, and specific improvement steps and responsible persons will be clearly defined, actively implementing consolidation and rest. The company should take it as a warning, strictly follow the provisions of law enforcement laws, Shenzhen Stock Exchange business rules, and relevant language standards, establish a perfect inquiry system process, standard inquiry behavior, and achieve pricing based on analysis, complete decision-making and planning process, and truly demonstrate the amateur pricing ability of institutional investors.
Senior pitcher Wang Jiyue informed the interface that the non-standard pricing in the new aspect may be due to internal complaints or non-standard pricing processes, making it difficult to prove other serious violations of the law. Therefore, it is also difficult to impose penalties without paying legal gains and fines. However, it may be necessary to consider stopping the relevant disciplinary measures such as offering qualifications for a period of time.
“The main purpose of cracking down on new restrictions is to avoid market price fluctuations caused by overvalued stock prices. The current actions are aimed at further undermining investors’ beliefs due to the high valuation of New Times.” Shen Meng, the director of Xiangsong Resources, stated that the current achievement lies in the tightening of IPOs, which may further undermine the new overvaluation.