Cao Zhongming: Cool Down The "IPO Fever" By Balancing Interests

At the "China Capital Market Forum" recently hosted by the Institute of Finance and Securities of Renmin University of China, Zhu Congjiu, the assistant chairman of the CSRC, delivered a speech titled "Multi efforts to cool down the" new stock craze ". In his speech, Zhu Congjiu proposed five measures to cool down the "IPO fever". This shows that the regulatory authorities will act on the issue of high pricing of new shares.

After two rounds of reform, New shares The phenomenon of "three high" issuance has long been widely criticized by the market. Obviously, this issue has also attracted high-level attention. At the 2012 National Financial Work Conference held from January 6 to 7, Premier Wen Jiabao said that it was necessary to deepen the market-oriented reform of the new share issuance system, pay close attention to improving the issuance, delisting and dividend distribution systems, strengthen the supervision of the stock market, promote the coordinated and healthy development of the primary and secondary markets, and boost confidence in the stock market. It is very rare to first mention the reform of the new share issuance system at the national financial work conference, which also proves that the existing system has major drawbacks from the side.

There is no doubt that the focus of the IPO system is pricing. The current IPO price is actually "finalized" by the issuer, the sponsor and the inquiry agency. The reason why the "three high" issuance of new shares is so rampant is that it can not be separated from the development of self packaging and whitewashing of pedestrians, from the hype of sponsors, and of course, from the competitive bidding of inquiry agencies. In this one Chain of interests In the article, the issuer and the recommendation institution undoubtedly wear the same "trousers", and only the inquiry institution is the real "third party".

The new share issuance shows a trend of "three highs". In addition to the defects of the current mechanism itself, it is obviously an important aspect that cannot be ignored that there is no interest balance pattern. First, even if the issuer has the phenomenon of packaging and whitewashing in the prospectus, as long as the high price issue "circles" the money, even if the problem is exposed in the future, it will not be "delisted" after listing, and it can still "survive" in the market; Second, because of the low cost of violation, it is really nothing for the huge benefits behind.

Secondly, in the roadshow and the so-called "value investment analysis report", the sponsor institution plays the role of "drummer" to the best of its ability. Such efforts are not for the sake of investors, but to stare at the "pockets" of the issuer, so as to steal more and greater benefits from the market.

Third, although many institutions involved in the inquiry "hit new stocks" to share the dividends of new stocks, the story of "stealing chicken is not worth eating rice" has been repeated repeatedly in recent years. It is rare for "Daxin" to be profitable, because it is not uncommon for those who quote high prices to "lift a stone to hit their own feet".

The author believes that in order to curb the high price issuance of new shares, we must establish an effective interest balancing mechanism to carry out systematic rectification. If the issuer is found to be fraudulently listed by packaging and whitewashing, it shall be immediately ordered to delist. investment In case of any loss in the investment activities of investors, claims can be made through litigation to protect their interests. In case that the recommendation institution and the insurance agency, due to their advocacy and misleading, lead to the high issue price, or blindly predict the growth potential and performance of the issuer, which eventually leads to a rapid "face change" or a substantial "face change", in addition to imposing penalties on the recommendation institution and the insurance agency, the underwriting fees obtained by the recommendation institution shall be confiscated and a fine of 3-5 times shall be imposed.

Since the issuing price of new shares is finally "inquired" by the inquiry agency, in order to prevent its disorderly quotation, "personal quotation" and "relational quotation", it is recommended to implement "market-oriented" placement, that is, after the minimum declaration quantity is determined, the higher price is the higher price, and the lower price is the lower price. Its weighted average price is taken as the online issuing price. In view of the phenomenon that funds bid up the issue price when making inquiries for new shares, regardless of the interests of the holders, the current mode of drawing fund management fees should be reformed. The author suggests that the 1.5% management fee of the fund should be drawn in two (for example, two 0.75%), and one 0.75% should be drawn by scale to meet the needs of its daily business activities; The other depends on its profit and loss. If profits are made, they are also drawn by scale. If losses occur, this part of income is a "whiteboard". In this way, the fund quotation is bound to be more rational, and the phenomenon of raising the issue price will be reduced. After the establishment of the above interest balancing mechanism, the situation of "three highs" issuance of new shares will be eased.