The new three board is scratching the regulatory storm, 64% of listed companies are involved

Abstract The new three board supervision storm The new three board market has expanded rapidly in recent years, and the number of listed companies has approached 8,000. However, while rapid development, the lack of some system construction has led to frequent exposure of various problems. Nowadays, the problem of capital occupation by major shareholders is becoming this round...
New Three Board Supervision Storm
The New Third Board market has expanded rapidly in recent years, and the number of listed companies has approached 8,000. However, while rapid development, the lack of some systems has led to frequent exposure of various issues. Nowadays, the issue of capital occupation by major shareholders is becoming the core of this round of supervision, and the fixed increase of related "problem enterprises" will be affected. Moreover, this is likely to be just the beginning of the regulatory storm, not the end.

Guide
In the future, intermediaries will have to bear the risk of reoccurring capital occupation problems with the company.
"At first, Lexus's environmental protection did not attract everyone's attention. The problem of similar accounts, in fact, more or less existed, but this year, with the round of verification by the regulatory authorities and our internal investigation of enterprises, we found that The severity of the listing of the NEEQ listed companies far exceeds the previous estimates." A large-scale listed brokerage investment bank in Beijing said to the 21st Century Business Herald.
Since December 22, 2015, Lingzhi Environmental Protection (831068) disclosed that after receiving the decision on administrative supervision measures issued by Jiangsu Securities Regulatory Bureau, it has been in the CSRC and the National Small and Medium Enterprise Share Transfer System (hereinafter referred to as the “National Share Transfer System”). The local securities regulatory bureau and other levels have carried out verification and supervision actions against the listed companies of the New Third Board, and the verification actions are very frequent.
Undoubtedly, the problem of capital occupation by major shareholders and related parties is becoming the key word for the supervision of the New Third Board market in 2016. With the recent increase in the number of related enterprises, the regulatory measures at the regulatory level are gradually escalating.

Serious capital use problem
How serious is the problem of the funds occupied by the new three-board enterprises?
According to Wind statistics, as of July 7, 2016, among the 7,725 listed companies, 4,975 companies have announced the use of related party funds, and the proportion of enterprises with capital occupation problems is as high as 64%, most of which are in 2016. Released after the year. In addition, there are 134 companies that sponsored the brokerages to issue a “Prompt for Risk Notices for Related Party Funds” for the issue of corporate capital occupation.
According to the statistics of the Tianxing Capital Research Institute, the 134 enterprises that were prompted by the risk accounted for a total of 4.558 billion yuan, with an average of 34 million yuan each. The total outstanding funds were 684 million yuan, with an average of 5.1 million yuan. In terms of the type of capital occupation, there were 81 borrowing enterprises, which took up a total of 1.99 billion yuan of funds; 43 enterprises with non-operating funds from related parties, totaling 2.143 billion yuan.
In the case where many major shareholders took up the funds of the listed company, the actual controller of the Airbus (831335), Wang Enquan, raised the funds to the Judiciary because he could not repay the funds, and raised the capital occupation of the listed companies in the New Third Board market to a new height, or A focus event for the market.
According to the special opinion on the fund occupation situation issued by the auditing organization, in 2015, the non-operating capital occupied by the company's actual controller Wang Enquan occupied a total of 186 million yuan, which was the reason for the borrowing. On May 12, Time Airbus suddenly issued a notice saying that the company's board of directors received a notice from the company's chairman Wang Enquan on the day of the company's funding to the Dalian Public Security Bureau High-tech Park Branch.
A week later, the company announced that the CSRC decided to investigate the company. At the same time, the Dalian Municipal Public Security Bureau High-tech Park Branch decided to file a case for investigation based on the case of Wang Enquan’s misappropriation of funds.
A partner of a large law firm in Beijing told reporters of the 21st Century Business Herald that many new three-board companies are not aware of this aspect and often hide such problems. This is inconsistent with the supervision of intermediaries and the lack of education for the company. relationship. As far as the current situation is concerned, the issue of shareholders and related parties in the A-share market has become more and more popular in the New Third Board.

Before and after the most stringent regulatory measures were introduced
In fact, the current understanding of the seriousness of the capital occupation problem of the listed companies in the New Third Board is largely due to the regulatory actions of the regulatory level since the end of last year.
According to the 21st Century Business Herald reporter, the national share transfer system issued a notice twice in the fourth quarter of 2015, requiring all enterprises with record records since 2015 to “reserve large shareholders and increase the funds in advance”. Self-examination of violations of laws and regulations. The stock transfer system also gave feedback on the results of the self-examination.
However, starting this year, the regulatory authorities conducted a new round of detailed verification on the issue of capital occupation, and the scope of the enterprises involved was further expanded.
First, the national share transfer system requires all enterprises to disclose the capital occupation status together with the annual report when they disclose the annual report, and separately disclose it in the form of special audit of capital occupation.
Subsequently, the National Stock Transfer System and the Local Securities Regulatory Bureau conducted another round of financial check-ups for listed companies in March 2016, and the issue of payment once again became the focus of verification. In response to this verification, a brokerage core department revealed that the supervisory layer told the continuous supervisors that they must pay attention to the problem of the payment. The shareholders and related parties must pay back the money and cannot happen again.
After the enterprise used the annual report to report the capital occupation, the national share transfer system organized various sponsored securities companies in early May to initiate a special statistical report on the capital occupation of the listed enterprises.
“When the annual report is disclosed, in fact, the regulatory authorities have required the company to submit a special report on the capital occupation with the annual report, so the national share transfer system has this action.” Lu Xiande, general manager of the OTC market.
A large brokerage investment bank in East China told the 21st Century Business Herald reporter that "although the brokerage and enterprises have already conducted a round of fund-raising investigation and disclosure, at the time, the regulatory authorities did not explain the specific circumstances of the capital occupation. The company reported all the cases, so it also brought certain difficulties to the conclusion of the supervision."
This re-feedback is also equivalent to re-organizing and verifying according to the direction provided by the regulatory authorities. This feedback is partly the basis for future regulatory decision-making.
Subsequently, at the end of May, the local securities regulatory bureaus re-issued the relevant issues. The Shenzhen Securities Regulatory Bureau, the Beijing Securities Regulatory Bureau, and the Guangdong Securities Regulatory Bureau, including the Jiangsu Securities Regulatory Bureau, successively issued notices on the risk investigation of capital occupation problems.
Taking the Beijing Securities Regulatory Bureau as an example, the documents issued by it specifically pointed out that from the analysis of the annual report, the controlling shareholder of the listed company and its related parties are more serious in occupies the funds of the listed company.
The notice from the Beijing Securities Regulatory Bureau, which was obtained by the 21st Century Economic Reporter, stated that the purpose of the investigation was to further standardize the use of funds of listed companies and prevent shareholders and their related parties from occupying or transferring funds and other resources of listed companies in various forms.
Now, after several inspections, the regulatory authorities have finally introduced the most stringent regulatory measures. When a listed company issues shares, if there is a situation in which the majority shareholder funds are occupied, the company that is inspecting and rectifying will suspend the filing review. In other words, if the listed company is involved in the capital occupation of large shareholders, the company will not be able to increase. At the same time, the reporter also learned that the situation of large capital occupation during the listing review will be directly dismissed.

More than 100 companies are affected by the new regulations
According to the statistics of a new three-board research institute, according to the latest regulatory measures of the national share transfer system, the fixed increase of 79 involved enterprises will be affected.
However, according to the reporters of the 21st Century Business Herald, it is very likely that more than 100 companies will be affected. If the calculation has not yet been made, but the problem of capital occupation cannot be solved, the enterprises that cannot be carried out after the subsequent increase cannot be carried out. The scope will be wider.
"Our major shareholder has previously occupied the company's funds, and has not yet been fully repaid. At present, our issuance filings have been stuck by the regulatory authorities. The institutions we talked about earlier should not come in. We hope to get this matter now. Solve, now the situation is so bad, I don’t know if the future will affect the company’s subsequent increase.” The secretary-general of a Beijing-related company told the 21st Century Business Herald.
At the same time, as in the previous regulations of the regulatory authorities on intermediaries, the national share transfer system pointed out that for companies that have completed rectification as required, they can continue to initiate the issuance, but should increase the disclosure of rectification, including the rectification of funds. The internal control system is perfect, the controlling shareholder and the actual controller have no commitment to occupy the company's funds in the future, and the relevant board resolutions. The sponsoring brokers and accountants will issue special opinions on the above situation.
In other words, the intermediary agencies in the future will have to bear the risk of reoccurring capital occupation problems along with the enterprises.
"The new three board's regulatory thinking has always been to pre-empt the intermediary's responsibilities, which is consistent with some ideas of the registration system, but for intermediaries, this means more responsibilities and risks. With this capital occupation problem For example, in the case of supervision, an intermediary agency's request for a clear opinion is equivalent to endorsing the company involved. Once it is re-offended, the intermediary agency can hardly blame. From another perspective, the regulatory layer will also summarize the problem of capital occupation. Part of the responsibility is due to the fact that the intermediaries have not been diligent and diligent, and they hope to use such arrangements to urge the intermediaries to perform their duties.” The head of the market for a small and medium-sized voucher mall in South China analyzed.

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