To promote the stock issuance registration system to go deep and solid, vigorously improve the quality of listed companies, cultivate first-class investment banks and investment institutions ...... With the Central Financial Work Conference held at the end of October issued a mobilization order to accelerate the construction of a financial power, as the-share market "gatekeeper", the level of practice, quality of the sponsor institutions or will usher in a stronger round of supervision.

At the recent annual meeting of the 2023 Financial Street Forum, Yi Huiman, chairman of the China Securities Regulatory Commission, mentioned in his keynote speech that "fraudulent issuance and financial fraud are the cancer of the capital market. There are even some enterprises, intermediaries and related parties colluding to falsify all elements of the whole process, forming a falsification 'ecological chain' and affecting investor confidence", he also stressed that in the future, it will "intensify the crackdown on financial fraud, fraudulent issuance, market manipulation and other illegal activities, and severely punish intermediary agencies that do not perform their duties properly, and will not tolerate them".

almost at the same time, on November 7, 2023, the CSRC issued a warning letter to Haitong Securities and its sponsor representatives Chen Cheng and Jing Yang, due to many problems such as Haitong Securities and related parties failing to perform their duties diligently and conscientiously when sponsoring Waugh Agricultural IPO.

8 passes by the "white list"

"The combination of decentralization and regulation" is one of the core elements of the systematic project of the comprehensive registration system reform, the main purpose of which is to deregulate but strengthen supervision, strictly control the quality of listed companies, and urge all market players to return to their due diligence.

With the opening of the board on June 13, 2019, there is a "test field" for the registration system that gives the choice to the market ". The reporter of "Public Securities News" counted the IPO sponsorship business of various securities firms and found that it was since then that Haitong Securities (600837) has secured the top three positions in domestic investment banking related businesses. The number of sponsors of 221 companies is the recognition of their business capabilities by many companies to be listed.

Haitong Securities itself revealed that as of the end of June 2023, the company had sponsored 67 IPO projects under review and pending, ranking third in the market. However, compared with the number of proud sponsors, it is another data embarrassment-also in June, the China Securities Regulatory Commission announced the latest "white list" of securities companies, and Haitong Securities missed it. Not only that, the reporter found that his name has never appeared in the "white list" of securities firms.

The so-called "white list" is a dynamic adjustment mechanism implemented by the China Securities Regulatory Commission for securities companies with effective corporate governance and compliance risk control in accordance with the idea of "classified supervision and decentralization. Securities companies included in it will enjoy a variety of facilities. The regulator hopes to compact the main responsibility of securities companies for internal control and compliance in order to promote the high-quality development of the industry. Since May 28, 2021, the "white list" has been published eight times, of which the securities companies have entered and left, but only Haitong Securities has been "shut out" eight times in a row ".

What is the reason, so that Haitong Securities has always been and "white list" brush past? From its most recent single withdrawal of sponsorship business-Wad agricultural machinery IPO project may be a glimpse of the clue. Among the many questions raised by the Shenzhen Stock Exchange, Wad Agricultural Machinery's dividend doubts bear the brunt.

Wo's sponsorship business lasted nearly 3 years from acceptance to termination. During this period, the company continued to pay dividends, with a dividend of 0.4 billion yuan in 2020 and another dividend of 1 billion yuan in 2022. The company explained that the market climate is high, the operation is good, to actively return to shareholders, in line with the principle of profit distribution. Prior to this, Wade Agricultural Machinery paid a dividend of 2.6 billion yuan in 2018, which is about 62.87 of the year's revenue and 3.57 times the year's net profit.

the company is so generous that the biggest beneficiaries are not others, but the real controllers Wang Weiyao and Zhang Amei, who have made nearly 3 billion yuan in profits. What caused market dissatisfaction is that while Wade Agricultural Machinery spends money like water, it has to fill the "pit" of cash flow from the secondary market. Of the 6 billion yuan it plans to raise, 2.338 billion yuan is used to supplement liquidity.

"the most expensive new shares": first over-raised, then broken

in 2022, there will be 30 IPO projects, ranking third in the market and 39.6 billion yuan in financing, ranking fourth in the market. In the first half of 2023, there were 11 IPO projects with a financing amount of 26.3 billion yuan, ranking third in the market in both the number of listings and the scale of financing. Haitong Securities detailed the bright performance of its IPO business in this year's earnings report.

However, behind the high number and financing scale of Haitong Securities' IPO sponsorship business this year, some of the sponsored projects are hardly of high quality. In addition to the phenomenon of "one check and withdrawal" previously reported by this newspaper, and the high withdrawal rate among the head investment banks, Haitong Securities successfully sponsored some of the so-called "high-quality" enterprises listed on the stock market, and the subsequent performance also made the market "surprise".

On April 18 this year, Suochen Technology (688507), sponsored by Haitong Securities, appeared in A shares with the title of "the most expensive new stock" of the year. Its issue price was as high as 234.5 yuan per share, which exceeded 1.568 billion yuan. It is more than double the amount of funds originally proposed to be raised. However, just a week after the listing, the listed company, which has a lot of expectations, handed over a quarterly report of losses: in the first three months of 2023, Suochen Technology lost 19.5116 million yuan in net profit, down 31.83 per cent from the same period last year.

the secondary market seems to have the foresight that the company joined the ranks of "broken shares" before the announcement of the change of face of Suochen's technology performance was released. Since then, its share price has fluctuated and fallen all the way, closing at 114.53 yuan per share on November 9, which has been "halved" from the issue price ".

before the listing of suochen technology, the honor of "the most expensive new stock" in the year also came from Haitong securities, which sponsored the IPO price of Japan Union technology (688531) as high as 152.38 yuan/share. Not only that, but also the peak of listing in the secondary market: on the first day of trading, its share price opened high and once rose to 240.64 yuan/share, but in a flash, it dived from the high platform and smashed a big yin stick on the same day. After that, the company's stock price fluctuated and dropped. As of the close of the market on November 9, it had fallen by more than 50% from the closing price on the first day, and it also fell below the issue price.

the peak of listing also happened to the "most expensive new stock" Jie technology (688220) sponsored by Haitong securities and listed in January 2022. The chip R & D and design company and Sochen Technology's share price trend is almost the same.

At that time, Ao Jie Technology planned to raise less than 3 billion yuan, but eventually raised more than more than 4 billion yuan. This means that there are many "lucky" investors who are immersed in the joy of grabbing the "big meat sign", and they are poured cold water on the reality of a single sign loss of nearly 30000 yuan. To make matters worse, Ao Jie Technology continued to fall. The closing price on November 9 was 66.5 yuan per share, which was only a fraction of the issue price of 164.54 yuan per share.

Sponsored part of the company letter disclosure violations

It is not difficult to find that most of the "most expensive new shares" of the year mentioned above came from the board.

After the pilot registration system of the board, Haitong Securities is at the forefront of the industry in terms of response speed and level of performance in the relevant sponsorship business. In 2020, the first full year after the launch of the board, Haitong Securities' IPO financing will be as high as 54 billion billion yuan, ranking first in the industry with a market share of 24.26 percent.

Haitong securities has already taken pride in the IPO sponsorship business of sci-tech board: in 2021, it will complete 16 IPO projects of sci-tech board, ranking second in the market in number and fourth in financing scale; In 2022, 17 IPO projects of sci-tech board will be completed, with a financing amount of 31.1 billion yuan, ranking second in the market in both the number of listed and financing amounts. In the first half of 2023, 6 IPO projects of sci-tech board were completed, ranking second in the market, the financing amount is 23 billion yuan, ranking first in the market.

In the industry, Haitong Securities has a well-known success rate in sponsoring the board. However, the science and technology enterprises sponsored by Haitong Securities seem to have failed to achieve "quantity" and "quality" growth. Wind data show that since 2022, Haitong Securities sponsored the listing of enterprises, at least 16 have violations (including receiving administrative penalties, regulatory letters, inquiry letters, etc.), of which 10 from the board.

on may 20, 2023, zhuojin shares (688701), which had the halo of high-tech enterprises and focused on comprehensive environmental protection management services, were punished by the securities and futures commission for breaking the law. In the second half of 2021, Zhuojin shares will be part of the cost in the name of margin into the current account, false reduction of operating costs of 27.9652 million yuan, and then inflated the total profit of 27.0567 million yuan, respectively, 11.47 percent of the amount disclosed in the current period, 57.84 percent, resulting in the company's disclosure of the 2021 annual report there are false records.

In the original 2021 annual report, Zhuojin explained that the net cash flow from the company's operating activities was -74.213 million yuan, a significant decrease from the same period last year, partly due to the significant increase in the amount of margin required for operations.

what makes the market more concerned is that the listing time of Zhuojin shares is impartial, which happens to be in the second half of 2021-September 16. Its fraud, whether it is the key stage of the sprint IPO? Or after the successful listing, it blatant financial fraud? In either case, Haitong Securities as a sponsor, or as a continuous supervisor, there seems to be a lack of diligence.

July 2022, the main integrated circuit research and development and design, sponsored by Haitong Securities Jinghua Micro (688130) landed on the board. However, in less than a year, Jinghua Wei suddenly disclosed that it needed to correct the previous accounting errors and periodic reports, involving the 2022 semi-annual report and the 2022 quarterly report. After correction, in the first half of 2022, the company's revenue decreased by 9.3171 million yuan to 85.7427 million yuan, down 15.45 percent from the same period last year.

the reduction of the 2022 semi-annual report is not over yet. in August 2023, jinghuawei issued another announcement, saying that its accounting had made another mistake and the revenue of the 2022 semi-annual report would have to be reduced, this time in 17.3806 million yuan. After the correction, the company's revenue decline in the reporting period increased to 32.59. Two consecutive corrections of accounting errors and periodic reports, as well as violations of the letter, soon to Jinghua micro to attract a number of regulatory letters.

What is even more ironic is that in the prospectus for the initial public offering of shares and listing on the Science and Technology Innovation Board announced on July 26, 2022, Jinghua Wei vowed to write: "It is estimated that the operating income range from January to June 2022 is about 95 million yuan to 105 million yuan." After verifying the correctness of the prospectus, Xue Yang and Yu Dong, the sponsor representatives of Haitong Securities, confirmed that "there are no false records, misleading statements or material omissions" and said that they "bear the corresponding legal responsibility for the authenticity, accuracy and completeness".

There are many problems in the sponsor business. Haitong Securities has not been included in the "white list", which should be reasonable.

Reporter Chen Zhi Intern Reporter Huang Qinqin