A Number Of Companies' Approval Period Is Approaching Or The New Regulations For Refinancing Will Be Settled Due To The Epidemic.

Under the impact of the epidemic, the refinancing process of listed companies has also been affected.

On the evening of February 4th, Guoxin Securities (002736.SZ) announcement, the Commission issued a non-public offering of former permitted company in August 5, 2019, and the approval should expire in February 4, 2020. According to the relevant provisions of the preceding notice, the validity period of the company's non-public issuance approval is suspended from January 31, 2020.

The background of Guoxin Securities announcement is that in January 31st, the people's Bank of China, the Ministry of finance, the Banking Regulatory Commission, the Securities Regulatory Commission and the foreign exchange bureau jointly issued the notice on further strengthening financial support for the prevention and control of the new type of coronavirus infection in pneumonia, and made further arrangements for strengthening financial support for the epidemic prevention and control work. During the epidemic period, the validity period of the refinancing approvals issued has been postponed since the date of promulgation.

In twenty-first Century, according to the Wind data, the economic report reporters found that as of the end of February 5th, 209 refinancing projects of A shares were issued by the trial committee for examination and approval, and some of them had not yet been implemented. Some of the refinancing project approval documents had expired or approached the original 6 month validity period, or they could be affected by the epidemic.

However, reporters learned that the impact of the epidemic on the refinancing market is only short-term, and the market parties are more concerned about the refinancing of the new rules.

In fact, since the release of the new regulation on refinancing in November 2019, A shares have significantly increased the number of listed companies with fixed refinancing schemes, and many listed companies have adjusted their fixed growth plans.

At present, the deadline for refinancing new regulations in December 8, 2019 is nearly 2 months. At the time of new and old alternation, the market is waiting for the new rules to come down.

Many approvals will be full for half a year.

On the eve of the expiration of 6 months in February 4th, Guoxin Securities caught up with the postponed policy. The validity period of the refinancing approvals issued during the epidemic period was suspended from January 31st.

The refinancing approvals will be more than 6 months old.

In twenty-first Century, economic news reporters combed the announcement and found that since August 2019, a total of 22 listed companies have been approved by the China Securities Regulatory Commission, and 4 rights issue applications have been approved. Moreover, 64 listed companies can apply for the issuance of convertible bonds after July 2019, and have been approved by the issuance examination committee.

Among them, 300078 of.SZ and 300164.SZ were approved in mid August 2019 and 6 months in mid February. The 6 issuance of 300560.SZ, 002301.SZ, 002129.SZ, 002824.SZ, 002824.SZ and 603955.SH were approved in September 2019 and 6 months in full.

"It is not clear how long the time is to be postponed. All parties have lengthened the financing agenda and can make more preparations. If the company is seriously affected by the epidemic, it may not be conducive to refinancing. Those who got the approval looked at their previous performance, but investors are looking at the future performance if they participate in the refinancing of the enterprise. In February 5th, an investment bank in Southern China told reporters.

"Refinancing is advancing, and we are not too concerned about the suspension of the approval period." In February 5th, a number of listed companies told reporters that "it is mainly the situation and policy implications. Many investors must take into account the impact of the new deal, because there are more products, and the funds are limited, according to the old policy, at least two years to lock. At present, we are talking with investors about the value of enterprises and the growth of enterprises in the future. We can not control the new deal. We can only tell investors the situation of existing enterprises, and communicate with investors according to the existing situation. A listed company in September 2019 announced that it had received approval from the listed companies. "We are still pushing ahead, and there is no new progress. The company has a relatively high share price." Another company close to the listed company said.

In twenty-first Century, according to the Wind data, the economic report reporters found that as of the end of February 5th, 209 refinancing projects of A listed companies were issued by the trial committee for examination and approval.

In fact, the implementation of fixed increase projects has not been uncommon in the past period.

The data show that in 2019, 231 of the 162 companies increased the number of projects to be terminated, which was close to the number of fixed increase projects issued during the same period.

From the point of view of termination, there are 94 projects to be terminated due to changes in the market environment, accounting for 40.7%. In addition, the terms of the transaction did not reach agreement, and the failure of the audit was also the main reason for the termination of the fixed increase. The number of the fixed increase projects was 63 and 48 respectively, accounting for 27.3% and 20.8% respectively. Another 11% of the projects were terminated due to judicial, target asset performance, cash flow pressure, and failure of internal resolutions.

Waiting for the new rules to be settled

As a matter of fact, since the release of the new rules for refinancing in November 8, 2019, the market has been rapidly warming.

The reform of the draft increase is mainly reflected in three aspects: the first is to increase the lock regularly to half a month to 6 months and 18 months, second is to increase the shareholders' no longer be restrained by the reduction rules, third is to increase the bid price by ten percent off from the base price to twenty percent off.

"In fact, the market has been sluggish in recent years. The core problem lies in the fact that the reduction and exit cycle is too long, and the discount security cushion has been greatly diluted, which has led to a sharp decline in the market investment attractiveness and the difficulty of issuance continues to rise. At present, the first two of the three measures of the draft will shorten the investment period of fixed investment. " Lin Jin, chief analyst of Shen Wan Hongyuan new strategy group, said that without considering the means of disguised reduction, the minimum investment period of general bidding increase will be 2 years. The new deal will shorten the fastest period by only 6 months. This revision is expected to drive the market to regenerate new vitality.

"Fixed growth is mainly based on whether there is arbitrage space, investors have the opportunity to make profits, issuers can raise funds." A broker dealer in Guangzhou told reporters.

In twenty-first Century, according to the bulletin of listed companies, after the release of the new rules for refinancing, 50 listed companies in A shares issued a fixed increase plan. In the evening of February 5th, 603232.SH announced that the application was approved by the SFC.

In December 8, 2019, the new rules for refinancing were closed, and the market was waiting for the new regulations to come out.

"Issued after the issuance of the provisions, so you can first plan out, and then change the terms." The former investment bankers explained to reporters why the plan for rapid increase has been increasing rapidly.

In November 8, 2019, when the refinancing rules were revised to solicit opinions from the public, the SFC emphasized that when the revised refinancing rules were issued and implemented, the refinancing applications had been approved and applied, and the relevant rules before the amendments were applied. The new rules that have not been approved by the companies have been applied, and the listed companies have carried out the corresponding decision-making procedures and updated the application documents.

The listed companies have adjusted the fixed increase plan. For example, in the evening of January 17th, Xin Xin integrated the relevant announcement on the 2020 year's non-public offering stock plan, and its previous refinancing approvals expired on that day. The company said that in view of the fact that the new refinancing regulations had not yet come into operation, the company decided to adjust the distribution plan with the signing of the investor's Hefei Dongcheng Industrial Investment Co., Ltd. and other intention investors, which had signed the subscription agreement with effective conditions, and on the basis of locking over some 800 million of the strategic investors' subscription share, the project address was moved from the original Xuzhou to Hefei, one of the national semiconductor bases, and the size of the new issuance plan was expanded from the original 3 billion 282 million yuan to 5 billion yuan.