Suspension of IPO review is equivalent to a death sentence

Depends on the situation

Hundreds of IPO suspension companies appeared on GEM in September. The review status of corporate IPOs is constantly changing, from accepted, inquired, suspended, to listed. The municipal committee meeting is adopted, terminated, submitted for registration to the final registration to take effect. In these states, two words with the same pronunciation appear. What is the difference between suspension and termination? When many people hear the word termination, they will know that it must be "Liangliang", but what if it is "suspension"?

From a literal point of view, the two words have the same pronunciation. If you don’t read the words and just listen to the sounds, I believe it will be confused and make a big joke, so be sure to read the words.

It's like a temporary pause for adjustments in the middle of a car race, such as changing tires and repairs. If an accident occurs during the game and the game cannot continue, the game can only be terminated. I believe it is not difficult to understand.

Generally speaking, the reasons for suspension of listing are:

(1) Incomplete application documents, etc., which prevent the review process from continuing;

(2) Situations where the issuer's subject qualifications are in doubt or the intermediary's practice is restricted, resulting in the review process being unable to continue;

(3) Situations where there are significant doubts about the information disclosed by the issuer that require further verification;

(4) The issuer actively requests to suspend the review or other circumstances that cause the review work to be unable to be carried out normally.

After applying for a suspension of review, the review can be resumed if the issuer and intermediaries have made clarifications and disclosures or taken corrective actions after the matters that have been suspended due to review have been eliminated. If the issuer's sponsor is investigated by the administrative agency for suspected violations of laws and regulations, it may apply to resume the review after the sponsor completes its review of the issuer's sponsorship work. (Guangfa Securities case in July 2020)

If the applicant voluntarily requests to suspend the review, when applying to resume the review, he should submit a written application and resume the review after approval.

After the review is resumed, the review sequence will be arranged with reference to the acceptance time of the issuer's initial public offering application.

On July 10, the China Securities Regulatory Commission issued a notice of “intended administrative supervisory measures against GF Securities.” This time, the China Securities Regulatory Commission proposed a penalty measure of suspending the sponsorship business of GF Securities for six months. On July 23, the sponsoring agency changed the review status of 23 IPO queuing companies of GF Securities to suspended. Due to the GF Securities incident, on September 18, Guangzhou Zhongwang Longteng Software Co., Ltd. showed that after changing the sponsoring agency, it returned to Inquiry Query status.