Study On The Issue Of A-share IPO Issuance Examination For Pre-IPO Companies In China

With the reform of the economic system,the capital market has developed rapidly.Domestic enterprises in China have formed a diversified financing mode,which is mainly based on bank loans,supplemented by bonds and equity financing.Meanwhile,there is a gradual decline in the proportion of bank loans and a rise in the proportion of bonds and equity financing.Compared with bank loans and bonds financing,equity financing has a higher threshold for issuance and a longer examination period,but it allows companies a greater amount of financing and a more liberal use of funds,and there is no need to repay the funds.Therefore,equity financing is increasingly favored by more and more companies.From 2010 to 2017,1,771 companies have passed the IPO issuance examination.As of February 22,2018,there were still 404 companies waiting for IPO issuance examination.From 2010 to 2017,a total of 300 companies failed the IPO issuance examination,95 were suspended or canceled.The situation is not optimistic.A lot of high-quality companies hoped to get better and stronger through issuing and listing,but for various reasons,they failed to pass the IPO issuance examination,and hence missed the opportunity for development.After briefly reviewing the evolution of the financing structure of China's domestic enterprises and the A-share IPO issuance examination system,this paper combines the actual cases,analyzes the main reasons why some Pre-IPO companies failed to pass the IPO issuance examination in recent years from seven aspects,including sustainable profitability,finance and accounting,standardized operations and so on,wishing to sort out the main concerns and thoughts in the IPO issuance examination,and then puts forward some specific suggestions for improving the passing rate of IPO issuance.Secondly,this paper analyzes the current situations of the registration system reform and the IPO issuance examination under the background of reforming,and then makes predictions.It is hoped that it can help companies examine their existing problems that may constitute a barrier to listing,increase the approval rate for IPO issuance,and also promote the standardization of production and management.