Cao Zhongming: The Listing Of Sinovel Is More Like A Mirror Of A Shares.

A notice on the investment in China Textile recently revealed the "insider" of its subsidiary, the securities company, which was punished by the regulatory authorities.

Due to the continuous supervision of the China wind power company after its listing, it has not been diligent and conscientious.

There is a false record of documents that have not been effectively implemented and submitted in connection with the sponsor's work. As the sponsor of Huarui wind power company, Anxin securities was punished by the regulatory authorities for three months.

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It is claimed that the punishment of Anxin securities is bound to have adverse effects on the investment banking business, revenue and the overall operation of the listed companies.

Besides, the reputation of Anxin securities will also be discounted.

In addition, based on the warning that Ping An Securities has been taken by the same regulatory measures, the subsequent impact on Anxin securities will not be short-lived.

But the listing of Sinovel is more like that.

The "mirror" of IPO.

Before the listing of Sinovel wind power in 2011, it could be seen as boundless.

With its excellent performance and strong growth, Hua Feng Feng has issued a new stock at the price of 90 yuan / share, which has also created a big myth of issuing new shares in Shanghai stock market.

But Sinovel also once again continued to grow rapidly before the issuance of new shares.

At the beginning of the listing, Sinovel's performance quickly changed, and its operating income and net profit were 9 billion 510 million yuan and 599 million yuan respectively, down 48.66% and 72.84% respectively compared with the same period last year. The losses in 2012 and 2013 were 583 million yuan and 3 billion 450 million yuan respectively, and the listed companies also expected to still lose money in 2014.

On the other hand, the cost of underwriting and sponsorship in the issue of Sinovel wind shares is up to 128 million yuan, which is carved up by Anxin securities and Sino German securities.

It can be said that as a leading underwriter and sponsor, Anxin securities has made a lot of money from it.

But after obtaining huge benefits from it, the trustee of others is unfaithful.

Not only does it fail to perform the duties of continuing supervision, it also presents false records in the submitted documents.

Moreover, in view of the fact that Hua Feng Feng was able to issue new shares at an ultra-high price of 90 yuan, the sponsor was undoubtedly the "accomplice" in addition to the self advocacy of the issuer.

Before the listing, the growth was full, and then issued at a high price, and then the performance quickly changed, followed by a large number of small and medium-sized investors suffered heavy losses, coupled with the sponsor's not diligent and conscientious, the follow-up effect of the new shares issued by the Chinese wind power company had previously been familiar with each other.

As a matter of fact, the scene on Huarui wind power also took place in many new shares, which has become another "A" landscape.

Without the regulatory authorities to withdraw the sponsor qualification, Anxin securities is undoubtedly lucky.

The suspension of sponsor qualification for three months has adverse effects on Anxin securities, but it also once again reveals the low cost of market irregularities, as well as the regulatory authorities' side to the securities companies.

A listed company whose performance is fast and "changing face" is a sponsor that fails to perform its diligent and responsible duties. When such a broker forms a bond of interest with a listed company, it also destinies the fate of investors' interests.

The question is, how can similar tragedies not be repeated in the future?

Since 2015, the registration system reform of IPO has been getting closer and closer to the market.

Under the background of registration system, the issue of new shares is easier, and the loss making enterprises may also enter the capital market.

Although the revision of the securities law is in progress, it is still unclear whether the low cost of offending regulations can be eradicated.

Moreover, due to the major shortcomings of the new delisting regulations promulgated last year, even if the major illegal enterprises listed on fraudulent listing and fraudulent issuance are to make a full correction of the illegal activities before the decision of the stock exchange terminates the company's stock listing pactions, and make timely arrangements for the withdrawal of the responsible personnel and make proper arrangements for the civil liability for compensation, it may also apply to the stock exchange for the resumption of listing.

The stock exchange should make a decision to agree to resume the listing of its shares within the prescribed time limit, and objectively provides another "green channel" for those who are serious offenders.

In this context, can we avoid the tragedy of sinoelectric wind? Can the interests of investors be guaranteed? Listing of Sinovel is another mirror of the A share market. What can we learn from it?