In the more than 20 days since the Beijing Stock Exchange’s “19 In-depth Reforms” were promulgated, there has been a significant increase in companies applying for initial public offerings (IPOs) on the Beijing Stock Exchange. A reporter from the Securities Times found that since September, six companies have applied for IPOs on the Beijing Stock Exchange, significantly exceeding the Shanghai and Shenzhen market.
Wind data shows that there have been more changes in the listing status of IPO companies on the Beijing Stock Exchange. Since September, the IPO status of 57 companies has changed, while in August there were only 18 changes, and in July there were 38 changes.
Judging from the experience filing status of IPO companies, since September, 30 IPO companies on the Beijing Stock Exchange have filed or completed experience filing. In the same period, only one company on the Shanghai and Shenzhen Stock Exchanges has filed experience, and there are still 3 companies. Declare the experience to be discontinued.
Some investment bankers said that they have recently been sorting out the status of reserve projects, introduced new policy intentions to some technology companies, and suggested considering listing on the Beijing Stock Exchange.
"There have been many rumors about the Shanghai and Shenzhen IPOs recently, but fortunately, the Beijing Stock Exchange has not been affected by the rumors. Experience, application, meetings and listings continue to maintain a normal pace. Under the guidance of the "19 Articles of Deep Reform of the Beijing Stock Exchange" "Under the current situation, high-quality expansion is still the primary task of the Beijing Stock Exchange." Zhou Yunnan, a senior New OTC Market commentator, told a reporter from the Securities Times.
A reporter from the Securities Times noticed that some companies reported to the Beijing Stock Exchange instead after requesting the Science and Technology Innovation Board to withdraw their applications. On September 6, Xuyu Optoelectronics submitted its listing experience filing statement to the Beijing Stock Exchange. It is reported that the company submitted its first public issuance and listing application to the Science and Technology Innovation Board on December 31, 2020. Because the company withdrew the above-mentioned listing application documents, the Shanghai Stock Exchange suspended the company's initial listing review on May 26, 2021.
There are also companies that directly change to apply for the Beijing Stock Exchange during the experience stage. On September 8, the sponsoring organization submitted Dana Biotech’s experience statement. It is reported that China Merchants Securities has submitted Dana Biotech Innovation Board listing experience filing materials to the Tianjin Securities Regulatory Bureau on July 15, 2022, and it was accepted on the same day. Due to the adjustment of Dana Bio's listing plan, the plan was reported to the Beijing Stock Exchange. Recently, it requested the Tianjin Securities Regulatory Bureau to file the listing experience of the Beijing Stock Exchange.
It is reported that the Tianjin Securities Regulatory Bureau identified 5 experienced companies that did not meet the positioning of the Shanghai and Shenzhen Stock Exchange sectors, and recommended that 2 experienced companies change sectors and apply to the Beijing Stock Exchange through the direct link mechanism.
In order to improve the efficiency of companies listing on the Beijing Stock Exchange for IPO, regulatory authorities are also actively responding. The company's listing experience cycle is one of the important factors affecting the listing process. The local securities regulatory bureau has stated that it will timely optimize the supervision methods of the Beijing Stock Exchange's declaration of corporate experience, and use scientific and efficient supervision to help high-quality companies seize the window period of the Beijing Stock Exchange's innovative policies.
Jiangxi Securities Regulatory Bureau stated that it will start from multiple aspects to optimize empirical supervision methods:
The first is to shorten the experience period requirements for companies that have been listed for three months, and that the company and its "key minority" have behaved in compliance with laws and regulations during the reporting period, as well as companies that have been listed for 12 months before being delisted from the No. 3 Board.
The second is to simplify the experience inspection procedures for NEEQ-listed companies that plan to apply to the Beijing Stock Exchange and have received on-site inspections in the past two years. Enterprises that have been registered and meet the applicable requirements for shortening the experience period can choose an opportunity to submit application for experience inspection after meeting the issuance and listing conditions of the North Exchange.
Third, if the sponsoring securities firm in the experience stage is inconsistent with the experience organization, experience filing and inspection will be organized according to normal procedures. If the experience organization is replaced during the experience period, it shall be handled in accordance with the relevant provisions of the "Supervision Rules for the Initial Disclosure of Stock Issuance and Listing Experience" (China Securities Regulatory Commission Announcement [2021] No. 23). If the experience policy changes the proposed listed sector from the Shanghai and Shenzhen Stock Exchanges to the Beijing Stock Exchange within the validity period of the inspection completion letter, the experience organization will conduct differentiated experience on the experience policy for the replacement sector, and the Jiangxi Securities Regulatory Bureau will issue a new inspection after inspection. For the termination letter, the validity period is calculated from the beginning.
The Heilongjiang Securities Regulatory Bureau also stated that it will optimize the experience period structure and will be satisfied with the companies that have been listed on the New Third Board for three months, that the company and the "key minority" of senior directors and supervisors have been legal and compliant during the reporting period, and those that have been listed for 12 months before being delisted from the New Third Board. For enterprises with a period of 3 months, the enterprise is allowed to shorten the experience period requirement by 3 months. Give full play to the continued supervision advantages of the New Third Board, strengthen the linkage between daily supervision and experience supervision, and simplify the experience inspection procedures for companies listed on the New Third Board that have received on-site inspections in the past two years to further facilitate enterprise declarations.