Since the implementation of the registration-based IPO system on the ChiNext, the refinancing summary procedure has continued to unleash vitality, and 'small-value, rapid' private placement cases have gradually increased. As of8month11day, already17A GEM-listed company completed a 'small-value, rapid' private placement through summary procedures, with the fastest time from acceptance to registration taking effect6Working days; average time from registration effectiveness to issuance and listing26On average, the financing amount per day was1.78100 million yuan.
From the perspective of institutional construction, why has the ChiNext introduced a simplified refinancing procedure system, and what role has it played in improving the refinancing system? From the market perspective, why is the simplified procedure system favored by small and medium-sized technology companies (SMEs)? Is there hope that more companies will finance through this simplified procedure? Frost & SullivanFrost & Sullivan,Mr. Lu Jing, Partner and Managing Director of Greater China at Frost & Sullivan (hereinafter referred to as 'Frost & Sullivan'), was interviewed by Securities Daily to discuss the refinancing summary procedure system introduced for the ChiNext market.
Securities Daily
Since the implementation of the registration-based IPO system on the ChiNext, the simplified refinancing procedure has continued to unleash vitality, with an increasing number of 'small amount and quick' private placement cases.
8month11Yesterday, the reporter learned from the Shenzhen Stock Exchange that there are currently17A GEM-listed company completed a 'small amount, rapid' private placement through summary procedures, with the fastest time from acceptance to registration taking effect6Working days; average time from registration effectiveness to issuance and listing26On average, the financing amount per day was1.78100 million yuan.
Ming Ming, chief economist at CITIC Securities, told the Securities Daily reporter that the simplified procedure has optimized issuance conditions and streamlined the review process. It can meet the financing needs of ChiNext companies, especially small and medium-sized enterprises, while also improving financing efficiency. With the acceleration of the economic recovery slope in the second half of the year and the continuous promotion of the simplified procedure, it is expected that more companies will finance through this simplified method.
Number of companies applying for projects this year Set a new record high
The refinancing summary procedure system was introduced by the ChiNext2020year6It was launched first in the month and later expanded to the Sci-Tech Innovation Board, receiving great favor from small and medium-sized enterprises. The introduction of the summary procedure has significantly increased the amount of "small-value, rapid" private placement financing, from the highest5000Ten thousand yuan and not exceeding net assets10%, increased to the highest3100 million yuan and not exceeding net assets20%.
Market participants believe that the summary procedure system, through the design of compacting front-end checks by intermediary institutions and increasing post-event penalties, has achieved a true 'no trial' concept, establishing a process from acceptance, review to registration that is only '2+3+3The 'fast' process on weekdays not only reshapes the market ecosystem and facilitates financing for small and medium-sized companies, but also provides new pathways and options for high-quality enterprises to raise funds.
In fact, the number of ChiNext companies applying for refinancing projects under the simplified procedure this year has reached a record high, exceeding the total of the previous two years. Data from the Shenzhen Stock Exchange shows that there have been11The number of GEM companies applying for the simplified refinancing procedure has exceeded2020year2021The sum of the years10home), especially7Months, with project applications submitted for four consecutive weeks. In addition, there are10A GEM-listed company disclosed a preliminary plan for the summary procedure item,44The company has obtained authorization from the shareholders' meeting to implement summary procedures, and there is a high enthusiasm for declaration.
"
"Companies listed on the Growth Enterprise Market (GEM) are typically at a critical stage of business development, with rapid business growth and high innovation. They have an active demand for financing from the capital market. The simplified refinancing procedure can effectively address the pain points of capital shortages faced by GEM companies during their business innovation process, and it has high social and market value." Lu Jing, Partner and Managing Director of Frost & Sullivan Greater China, told the Securities Daily reporter.
According to statistics, this year there were11The companies listed on the Growth Enterprise Market (GEM) are all small and medium-sized enterprises, with a relatively dispersed industry. The average market value and net profit for the most recent year are41yuan0.43Yuan billion, lower than the average level of the ChiNext.
"In recent years, the domestic and international situations have been complex and diverse. Innovative and entrepreneurial small and medium-sized enterprises sometimes face cash flow problems and may find it difficult to meet the relevant requirements of bank credit. Timely small-scale rapid refinancing is a 'timely rain' and 'panacea' for some small and medium-sized enterprises," said Tian Lihui, dean of the Institute for Financial Development at Nankai University, to the Securities Daily reporter.
More companies will be listed in the second half of the year Financing through summary procedure
From practice, the summary procedure system has a short review time and quick fund arrival, benefiting small and medium-sized enterprises greatly.
It is reported that the Delphi Co., Ltd. simplified procedure refinancing project application was submitted on2022year7month20Daily acceptance, planned fundraising2.5yuan,7month28The registration approval has been obtained, and funds have recently arrived, far less than what the company expects.2021When refinancing through the ordinary procedure in a year221The issuance and listing cycle of the stock (from obtaining the registration approval to issuance and listing). In addition, the company's previous fundraising projects plan to raise funds9Yuan billion, affected by factors such as the epidemic2020The annual performance turned from profit to loss4.18Yuan, which has increased the issuance difficulty to a certain extent. In fact, only funds were raised2.9Yuan billion. The projects funded through this summary procedure are those that were previously reduced from the original fundraising plan, and they can serve as a useful supplement to insufficient funds raised under the ordinary procedure.
As the first company under the GEM registration-based system to apply for summary procedures, Qianyuan Medicine has experienced the benefits of the system's convenience, successfully applying for summary procedures in February this year and raising funds1.1RMB 100 million, forming a good market demonstration effect.
The interviewed experts believe that as the market's understanding of summary procedures deepens and more beneficiary enterprises benefit from them, more companies on the ChiNext will raise funds through summary procedures in the second half of the year.
"
"Short-form financing does not mean a weakening of regulatory efforts, but it has also achieved an improvement in review efficiency and issuance decision-making efficiency." Lu Jing analyzed that from the perspective of capital market effectiveness, it has improved the financing efficiency of ChiNext companies, further stimulating market vitality. From the perspective of the healthy development of the capital market, more ChiNext companies will finance through short-form procedures in the second half of the year, and the market will continue to remain active.
Tian Lihui stated that it is expected that more companies will use summary procedures for financing in the second half of the year to acquire capital and enhance resilience, thereby seizing market opportunities during economic recovery.
*This article is reprinted from "Securities Daily", reporter Xing Meng , Original title: GEM refinancing The summary procedure system unleashes new vitality ">
Frost & Sullivan Insight & Extended Readings
Q: From the market perspective, this year there have been a number of companies applying for summary procedures (11The number of cases handled by the summary procedure system has exceeded the total of the previous two years. What are the main reasons why this system is favored by small and medium-sized technology companies?
A: The reasons for the preference of small and medium-sized startups are the shortened review period, increased financing scale, and streamlined issuance conditions.
The first is the reduction in review duration. Compared to ordinary programs15First-round review inquiries are submitted within working hours, and through the simplified procedure for small-scale refinancing, the Shenzhen Stock Exchange will conduct a completeness check on the application documents within two working days after receiving them, and make a decision on whether to accept it. This greatly shortens the review cycle. The reduction in review time costs also enables enterprises to flexibly carry out refinancing activities, reducing the probability of large-scale financing due to high upfront time costs, and avoiding idle and wasted funds later on.
The second is the expansion of financing scale. Before the reform of the ChiNext and the pilot registration-based system, listed companies on the ChiNext also had a small-cap private placement mechanism for refinancing. However, this was not favored by enterprises due to limited financing scale. Now, for the non-public offering under the simplified refinancing procedure, the financing amount is determined by5,000Ten thousand yuan and not exceeding net assets10%, increased to3100 million yuan and not exceeding net assets20%This relaxation effectively solves the financing problems of some high-quality enterprises and small and medium-sized start-ups. To a certain extent, it helps GEM-listed companies obtain a certain amount of financing in a short period, better stimulates market vitality, and forms a positive cycle of development.
The third is the relaxation of the issuance conditions for the ChiNext market, with two conditions being cancelled and one disclosure requirement adjusted. The adjustment of these three rules has lowered the threshold for refinancing on the ChiNext and expanded the coverage of financing, stimulating overall market vitality.
