Source: China is a through train
Author: Wang Enbo
On the evening of November 3, the highly concerned ant group’s listing process pressed the “pause button”. Authoritative experts close to the regulatory authorities pointed out to China news agency that the regulatory authorities decided to suspend the listing of ant group at this time. Although it was rare, it was completely in accordance with the law. The timely triggering of the post conference event system reflects the internal requirements of the benign operation of the registration system.
Looking at the newly revised Securities Law in 2019, we can find that it has made clear the relevant institutional arrangements for the registration system. Among them, Article 24 basically retains the original system, which stipulates that “if the securities regulatory authority under the State Council or the department authorized by the State Council finds that the decision of securities issuance registration that has been made does not meet the legal conditions or procedures, and has not yet issued securities, it shall be revoked , stop publishing. If it has been issued but not yet listed, the decision to cancel the issuance registration shall be made. ”
In order to implement the requirements of the securities law, it is necessary to discover and deal with the major events occurring before listing in time. For this reason, Article 26 of the measures for the registration and administration of initial public offering of stocks on the science and technology innovation board (for Trial Implementation) stipulates the reporting obligations of the issuer and the sponsor to the exchange and the timely handling responsibilities of the exchange in case of major events after the CSRC makes the registration decision and before the listing and trading of the issuer’s shares; Article 27 stipulates the handling measures that the CSRC can take.
At the same time, the rules on the examination and approval of the stock issuance and listing on the science and Technology Innovation Board of Shanghai Stock Exchange further clarify the responsibilities of the exchange in handling major matters before listing.
First, before the listing and trading of stocks, the issuer and its sponsor shall timely report to the exchange and update the application documents for issuance and listing as required; the sponsor and securities service institution of the issuer shall continue to perform their due diligence duties and submit special verification opinions to the exchange.
Second, after deliberation by the listing committee and before the listing and trading of stocks, if major events occur, which have a significant impact on whether the issuer meets the issuance conditions, listing conditions or information disclosure requirements, the examination and approval institution for issuance and listing of the exchange shall decide whether to re submit it to the Municipal Committee for deliberation after re examination; if it is re submitted to the Municipal Committee for deliberation, it shall report to the CSRC.
Third, after the CSRC makes the registration decision and before the listing and trading of the shares, if there are major events that may cause the issuer to fail to meet the issuance conditions, listing conditions or information disclosure requirements, the issuer shall suspend the issuance; if it has already issued, the listing shall be suspended; if the exchange discovers that the issuer has the above-mentioned circumstances, it has the right to ask the issuer to suspend the listing.
It is not difficult to see that the above series of laws and regulations constitute a complete issuance supervision chain.
It should be noted that one of the core of the registration system is to enhance inclusiveness, but at the same time, it always emphasizes the use of market-oriented and legal means to strengthen supervision. Therefore, the chain of issuing supervision must be complete, and there should be no vacancy or weakening in any link, otherwise it is easy to have “barrel effect” and bring risks to the legitimate rights and interests of investors.
Before the listing of an enterprise, both the institutional environment and the enterprise itself are in the process of dynamic change, and various major events that may affect the issuance may occur.
Recently, the actual controller, chairman and general manager of ant group have been jointly supervised and interviewed by relevant departments, and the financial technology regulatory environment is also changing. It is this series of situations that trigger the post meeting event system, which is also a reflection of the registration system system responding to the new situation and realizing the benign operation.
Dong ximiao, chief researcher of Zhongguancun Internet Finance Research Institute, also told China news agency that the regulatory authorities decided to suspend the listing of ant group at this time according to the relevant laws and regulations of the registration system, which fully reflected the idea of protecting the interests of investors and maintaining the long-term healthy development of the capital market.
Dong ximiao believes that the news of ant group’s listing in the early stage has been widely concerned, and retail investors in the market are flocking to pursue it, resulting in the risk of over valuation of ant group. The suspension of listing will help to cool down the market sentiment and avoid the loss of investors’ interests due to excessive valuation in the early stage.
What should ant group do after suspending its listing? The above-mentioned authoritative experts pointed out that the issuers and intermediary institutions should, in accordance with the requirements of the registration system, carefully check major situations, and strictly evaluate whether they meet the requirements of listing and information disclosure, so as to effectively safeguard the seriousness and fairness of the registration system.
Source: China is a through train