At least half of the members of the Commission will be removed from office next week or public list.


At least half of the members of the Commission will be removed from office next week or public list.

Original title: the Commission has heard rumors everywhere! Suspend IPO acceptance? As a matter of fact, at least half of the members will retire after half a month, and the next week will be announced.

In another 16 days, the capital market will usher in the new issuance examination committee. According to the schedule, next week will be the time window for the SFC to publicize the list of members to be appointed to the 18th NDRC.

It is also in this time slot that there are a lot of rumors about the issuing Committee today:

One is to say that in September 15th, the trial will be suspended for one month.

Another point is that the NDRC and the Restructuring Commission will be replaced at the same time, and the proportion of senior executives of intermediary institutions serving as professional members will be increased.

It is the focus of attention of the market to grasp the issuing Committee of listed stocks. Chinese journalists from brokerage firms have learned from many sources that the SFC is tightly arranging for a new session of the NDRC. In order to ensure a smooth transition on September 30, the lists of prospective IPOs will probably be published next week. In the process, the acceptance and audit of IPOs will not be affected, and the issuance will proceed at a normal pace.

At the same time, the reorganization of the merger and reorganization committee is also advancing.

According to Choice's statistics, 238 IPOs have been audited since the NDRC took office in October last year. Of these, 135 have passed the meeting, 85 have been rejected, 18 have been cancelled or suspended voting, and the passing rate of IPOs is 56.72%.

Next week's approximate rate will be announced.

According to the public notice period of 5 working days, when the 18th NDRC member takes office in October to perform his duties, it is necessary to publicize the list of candidates before 25 days, and next week is the time window.

"The SFC is working hard to arrange arrangements for the renewal." A person familiar with the matter said that the preliminary list had been mastered and the final list should be subject to public announcement. The change of term did not affect the daily audit work, especially the IPO audit, from acceptance to the CDRC audit, is a normal action.

The CSRC's latest announcement shows that it will review the applications for convertible bonds of Yantai Zhongchong Food Co., Ltd., Wigness Fashion Co., Ltd. and the application for a rights issue of Guiyan Platinum Co., Ltd. on Monday.

With the gradual recession of the IPO barrier lake, the density of the examination of IPO by the NDRC has decreased. As of September 6, 2018, the China Securities Regulatory Commission (CSRC) has accepted 289 enterprises that issue and issue depositary receipts, of which 29 have met and 260 have not. 244 enterprises that normally fail to be heard in the enterprise have not been passed, and 16 enterprises have been discontinued.

In July this year, the Securities Regulatory Commission revised the Procedures for the Review Committee on Mergers and Acquisitions of Listed Companies of the China Securities Regulatory Commission (hereinafter referred to as the "Procedures for the Review Committee on Mergers and Acquisitions of Mergers and Acquisitions"), and adjusted the work of the Mergers and Acquisitions and Acquisitions Commission, including appropriate expansion. The size of a large Committee shall be increased from 35 to 40 members with no more than 11 internal members; the term of office shall be shortened, and the term of office of the members shall be changed from 2 years to 1 year for each term, and the maximum term of office shall not exceed 2 consecutive terms; the conditions for appointment of the members shall be optimized, and the qualifications for the members shall be in accordance with the original requirements of clean government, professional quality, discipline and law-abiding conditions. On the basis of this, the members are required to have high political and ideological quality, theoretical level and moral cultivation, and the selection committee of the merger and reorganization committee is set up.

After the rules were issued, the SFC began to select the members of the new M&A and reorganization committee, namely the 7th M&A and reorganization committee, and the 6th M&A and reorganization committee worked until the establishment of the new M&A and reorganization committee.

At least half of the members of the trial committee are "stepping down".

Among the 63 members of the present issuance examination committee, there are 42 full-time commissioners and 21 part-time members. Of the 42 full-time members, 33 are full-time members, of whom 19 are from the SFC, the Securities Industry Association and the local securities regulatory bureau, and 14 are from exchanges. A total of 7 members of the securities and Futures Commission, such as brokerages, funds, insurance and financial institutions, are all part-time. There are 9 members from law firms and accounting firms.

According to the regulations, the maximum number of members of the NDRC is 66, and the term of office of the members is two consecutive terms, at least half of which are replaced each year.

This means that at least half of the 63 members of the Commission will retire during the current term. In fact, 61 of them are still in office, Zhu Xianzhong of Huarong Securities was dismissed from the 17th NDRC on August 10, and Li Guochun of Heilongjiang Securities Regulatory Bureau, a full-time member, died unexpectedly due to physical reasons on September 12.

How to select the members of the issuance examination committee highlights the regulatory intent of the regulators for the IPO trial.

For example, the current NDRC has increased the number of full-time members of the supervisory level, in the opinion of investment bankers, the increase in the number of supervisors, listed companies more stringent internal control, compliance requirements.

Some media reports say that the part-time members of the NDRC are likely to be abolished and the proportion of senior executives of intermediary institutions serving as professional members will be increased. This view has not yet been confirmed. According to the Regulations of the Issuance Audit Committee of the China Securities Regulatory Commission (hereinafter referred to as the "Measures of the Commission for Issuance and Examination"), during the period of employment of part-time members other than the Securities Regulatory Commission, restrictions on the sale and sale of stocks shall be stipulated separately. Members of the Securities Regulatory Commission shall strictly comply with the staff of the Securities The regulations prohibit the sale and purchase of stocks.

At the same time, we should increase the verification arrangements for the sale and purchase of stocks by officials. In fact, part-time members are set up from the rule level. Among the existing list of part-time members, Chairman Huo Da of China Merchants Securities, Vice Chairman Wang Song of Guotai Junan and Chief Executive Officer Bi Mingjian of China Gold Corporation are all included.

The first trial committee of the Dafa, the IPO rate was 56%.

Since the GEM and the Main Board Development and Examination Commission merged for the first time in October last year, this session of the Development and Examination Commission was called the "Grand Development and Examination Commission".

According to Choice's statistics, 238 IPOs have been examined since the first NDRC took office in October last year. Of these, 135 have passed the meeting, 85 have been rejected, 18 have been canceled or suspended voting, and the IPO passing rate is 56.72%.

Purely looking at the audit data in the first half of this year, as of June 30, 2018, 118 IPO companies have been examined by the NDRC, 58 of which have successfully met, with a passing rate of 49.15%. This meeting rate is far lower than the 91.3% in the first half of 2017 and 81.45% in the first half of 2016.

The chairman of the SFC, Liu Shiyu, publicly asked the members of the CIRC to strictly control the information concerning the quality of listed companies, firmly implement the concept of comprehensive and strict supervision according to law, strictly perform their professional duties and examine and verify according to law, so as to prevent the problem enterprises from reporting illness and getting through the customs. Members of the NDRC should properly handle the relationship between the work responsibilities of the NDRC and themselves, their families, their original units and issuers as well as other members of the market, resolutely implement the "no money, no stock speculation, no invitation", firmly prohibit corruption by purchasing the original shares of listed companies, and resolutely implement the avoidance system. Purify friends circle.

The members of the issuance examination committee have always been considered to be the "killing power" of IPO. According to the audit procedure, the 7 members of the issuance examination committee participating in the issuance examination committee meeting each time. The number of votes agreed to 5 votes was adopted when voting was voted, and the number of votes agreed to not reach 5 votes was not passed.

The work of the trial committee was released 5 days ago on the official website of the securities and Futures Commission.

After the meeting of the DAC is over, the DAC shall sign and confirm the minutes, opinions and voting results of the meeting and submit a working draft at the same time. If the members of the DAC have any objections to the issues and opinions raised by the members of the DAC in the preliminary examination report, they shall put forward a sound and clear examination opinion on the relevant contents in the working draft; if the members of the DAC believe that the issuer has problems other than those raised in the preliminary examination report, they shall put them on the working draft. If the members of the NDRC believe that the issuer has major problems which need to be investigated and verified and which affect the clear judgment, they shall put forward a sound and clear opinion on the working draft. Members of the Development and Examination Commission shall, at the meeting of the Development and Examination Commission, issue their personal opinions on the basis of their own working papers, and at the same time, improve their personal opinions on the basis of the discussions at the meeting and record them on the working papers.

The results of the NDRC and issues of concern to members of the NDRC will also be published on the official website of the SFC on the same day after the end of the NDRC. The market can thus understand the tightness and concern of regulation to IPO.

 

Editor in chief: Wu Jinming


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