Regulators Release Direct Financing Acceleration Signal IPO, Refinancing Scale Is Expected To Catch Up With Last Year

Recently, the information on "accelerated IPO approval" and "refinancing audit speed" has aroused heated debate, and is also considered by the market to be a signal for regulators to release direct financing to speed up in the year.

In fact, the recent top-level design documents and heavy meetings have repeatedly referred to capital markets. For example, in April 7th, the financial stability and Development Committee of the State Council pointed out that we should broaden the financing channels for enterprises and play a pivotal role in the capital market. In April 9th, the CPC Central Committee and the State Council issued the opinions on building a more perfect system of market allocation of elements, and again mentioned that we should adhere to the reform of marketization and rule by law, improve the basic system of capital market, and enhance the ability of capital market to serve the real economy.

Among them, speeding up direct financing is an important core foothold for the spirit of documents and conferences. From the perspective of specific implementation channels, IPO and refinancing are undoubtedly the two most important parts of capital market and direct financing.

"2020 will be a new year of equity financing or direct financing, and the scale of IPO financing and the scale of refinancing are expected to exceed those of the past few years." A senior Beijing Bao Dai told reporters.

Acceleration of registration and approval

When it comes to capital market support for the real economy, many people will first think of IPO, which is also an important part of the regulatory toolbox.

According to the statistics of reporters, this year, the SFC approved 44 enterprises IPO, agreed to register 23 enterprises, and 57 enterprises completed the issue, financing 82 billion 377 million yuan. It is equivalent to approving 3 enterprises IPO per week and approving 2 enterprises' Registration Boards.

In fact, the size of the IPO has exceeded the first quarter of 2019 this year. In the first quarter of 2019, there were 32 listed companies in China, which raised 32 billion 646 million yuan in total.

But with regard to the support of enterprises, such a scale is far from enough. At present, China's epidemic prevention and control is facing new situations, and is in the critical stage of resuming work and resuming production. The related fields urgently need financial support, and the issue of new shares is an important path.

In this case, the SFC also started to act. In April 10th, the SFC broke through the average number of previous issued approvals and approved the IPO of 5 enterprises.

At the same time, the reporter learned that the SFC will also speed up the speed of registration of the company.

In April 10th, the SFC also agreed to the registration of 2 Science and Innovation Board enterprises. When the SFC jointly registered 4 companies in the board, including a company that applied for registration to the SFC in November last year. And in the evening of April 15th, the SFC further agreed to the registration of two science and technology enterprises.

With the speed of approval issued, the market began to anticipate whether the IPO audit will speed up.

However, according to the reporter's understanding, at present, the SFC's IPO and the sac's audit speed are already at a relatively fast pace. Just because of the control of approval and the speed of registration, the "barrier lake" that had not yet been issued was formed. According to Wind statistics, there are 42 enterprises that have not yet received approval after the meeting, and 21 of the companies that have been audited by the Shanghai stock exchange but have not obtained the approval of the SFC.

To speed up the financing, the two statements of the SFC are worth noting. First of all, we must strictly control the quality of the listed companies on the premise of doing a good job in the prevention and control of the epidemic situation. We must persist in auditing and do not relax, and effectively prevent and control all kinds of risks. At the same time, we must maintain the efficiency of the audit so as to ensure that more eligible listed companies are listed and give full play to the role of the capital market in serving the real economy.

In addition, it is necessary to scientifically and reasonably adhere to the issue of normalization of new shares, maintain a steady pace of issuance according to market conditions, and appropriately increase support for enterprises' financing efforts, but do not engage in the centralized approval of the big leap forward, so as to continuously clarify market expectations and maintain market stability.

"Regulators have always been concerned about the relationship between the issue of new shares and the stability of the two tier market. Based on this expectation, the scale of IPO financing will go up to a higher level in the year, but there will be no scale expansion. The senior insurance representative said.

However, there are two big variables in the IPO market in 2020, which will have a direct impact on the scale of financing. The first is the public offering of the new third board market, which is called "small IPO". At present, the market expects that about 50 companies will complete the issue within the year, but the details of the size of the issue are not yet clear, so it is not yet possible to judge its impact on the size of the IPO within the year.

In addition, the gem registration reform will also affect the size of the IPO, but the reform has not yet started and can not be directly judged.

Refinancing is expected to accelerate again

In addition to the issue of new shares, refinancing is another important channel for direct financing. Compared with IPO, the SFC launched a speed increase in refinancing (private placement) in February this year.

After the implementation of the new regulation of refinancing, the enthusiasm for financing of listed companies is heating up. According to incomplete statistics by reporters, so far this year, a total of 146 new plans have been set up for listed companies (excluding fixed increase and reorganization), and the total planned fundraising has reached 218 billion 850 million, an increase of 345.51% over the same period last year, of which two listed companies have raised more than ten billion yuan.

Specifically, excluding the fixed increase reorganization, the "first disclosure plan day" is the point of time calculation. There are 146 plans for raising funds for project financing or supplementary liquidity, a significant increase compared to 19 projects in the same period last year. Among them, after the new regulation of refinancing (February 14th), there were 133 plans, accounting for 91%. This also reflected the obvious effect of the policy stimulus and increased market activity.

Although the refinancing plan for listed companies is in full swing, the actual financing scale of refinancing this year is rather weak.

According to the statistics of Wind, up to now, the scale of fixed increment financing is only less than 200 billion yuan. Only 53 companies have completed fixed growth, and other refinancing varieties such as convertible bonds and preferred stock have not been able to raise funds in the first quarter.

"The scale of refinancing this year depends entirely on the outbreak of the new financing policy. In fact, regulators have repeatedly reiterated that it is necessary to speed up the refinancing audit and increase the intensity of corporate refinancing, which is also related to the weak data. Under such circumstances, the refinancing policy does not exclude further actions, such as further compressing the refinancing audit cycle, so as to ensure that more enterprises can start issuing work earlier. A small and medium-sized brokerage investment bank in Beijing pointed out.

At the same time, the SFC also proposed to open a green channel for refinancing audit, and refinancing applications for key enterprises in enterprises with serious epidemic areas and in the field of epidemic prevention and epidemic prevention.

Market participants are more optimistic about the scale of refinancing during the year. "From the current trend, convertible bonds can maintain stable issuance at the same time, increase the size of financing or surpass last year. In 2020, the rough calculation of refinancing scale can impact another trillion yuan mark." Ze Hao investment partner Cao Gang thinks.