Prudently Open The "Green Channel" For Internet Companies To List

In order to support Shenzhen's capital market reform and innovation and accelerate Qianhai's financial first try, the China Securities Regulatory Commission recently issued some opinions on supporting Shenzhen's capital market reform and innovation.

In a number of opinions, the SFC proposes to actively study and formulate plans to promote the establishment of a special level in the gem, allowing Internet and technology innovation enterprises that meet certain conditions and have not yet made profits in the new three boards after listing for 12 months, to support the gem's healthy development.

Why is it necessary to introduce this policy? This is obviously related to the overseas listing of many Internet companies including Alibaba in recent years.

In particular, Tencent and Baidu have brought a good return on investment to overseas investors after overseas listing. Therefore, in the domestic market, there have been some accusations that why the A share market can not keep these excellent enterprises in China.

The SFC supports the Internet and technology innovation companies that have not yet made profits in the first three years of the new three board listing to the gem, which is to keep such enterprises in the domestic market.

It is easy to understand the good intentions of regulators.

However, it is necessary to support the Internet and technology innovation enterprises that have not yet made profits in the new third board listing policy after one year listing.

Once the policy is implemented, it will bring huge IPO pressure to the gem and even the entire A share market.

According to statistics, as of October 9th, there were 451 information technology enterprises, 342 industrial enterprises and 155 material enterprises in the 1167 new three board enterprises.

The vast majority of enterprises are distributed in the TMT, mobile Internet, equipment manufacturing and new materials and other innovative industries.

If these enterprises are pferred to the GEM market at once, the pressure on the A share market can be imagined.

Gem also has the potential to become junk.

Moreover, the Internet and technology innovation enterprises that have not yet made profits can be listed in the new three boards a year later.

Listing is unfair to many enterprises queuing at the gate of IPO.

Moreover, there are many technological innovation enterprises in these IPO queuing companies, and these enterprises have been profitable for many years.

Why are these queuing and profitable technology innovation enterprises still not likely to be listed first?

More importantly, support for not yet profitable.

And technology innovation enterprises are listed on the gem after one year listing.

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For example, at present, the securities law stipulates that one of the conditions for the listing of stocks is "stock has been approved by the securities regulatory authority under the State Council for public issuance", and the public offering of new shares companies must have "continuous profitability and good financial standing".

This obviously does not support the "green channel" for unprofitable enterprises.

In addition, if these enterprises are still unable to make profits after listing, according to the current delisting system, the 3 year loss will be directly delisted.

In this way, how to protect the interests of investors? Especially if these losses are not positive after listing, it is very likely that they will leave a shell to the market, and the final interests will be damaged by investors in the two tier market.

Therefore, when the relevant policies are not matched, the SFC's new policy is not suitable for implementation.

Moreover, from the perspective of developing the new three board market, it is prudent to support the Internet and technology innovation enterprises that have not yet made profits in the new three board listing to the gem after one year listing.

The new three Board companies, especially some relatively good companies, have been pferred. How can the new three board market develop? Therefore, on this issue, the market participants should form a consensus that the listing in the new three board market is also a manifestation of the capital market's support for the development of the Internet and technological innovation enterprises, and not only the A share listing is the support. Otherwise, what is the development of the multi-level capital market system in China's capital market?