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Another new regulatory regulation for securities firms has been implemented.

On May 24, the Securities Industry Association of China issued the "Guidelines for Securities Companies to Provide Investment Value Research Reports"(hereinafter referred to as the "Guidelines"), which aims to further standardize the formation process of bidding reports, prevent conflicts of interest, and strengthen the professional independence of analysts. Sex, promote the improvement of the quality of bidding reports, and give full play to the important reference role of bidding reports in issuance pricing.

The bidding report is an important reference material for offline investors to judge the issuer's investment value. "However, in the process of carrying out related businesses, there are problems such as the low quality of bidding reports, the large deviation from forecasts of some bidding reports, and insufficient professional independence of analysts." China Securities Association said.

The "Guidelines" have a total of 23 articles, which mainly put forward standard requirements for the independence of bidding report production, analyst cross-wall management, IPO roadshows, etc.

Specifically, securities companies are required to maintain the principle of independence when providing bidding reports, strengthen compliance management of exchanges between securities analysts and investment banks, issuance underwriters, and issuers, and prevent conflicts of interest.

This includes requiring analysts writing bidding reports to maintain independent judgment and not be influenced or interfered by stakeholders. In addition, analysts and stakeholders are prohibited from discussing investment analysis such as earnings forecasts and valuations before providing bidding reports to offline investors.

Before securities analysts participate in the writing of the bidding report, they must first go through cross-wall approval procedures, and are not allowed to arbitrarily adjust cross-wall analysts. If there is a replacement, the original cross-wall securities analysts are not allowed to disclose and use sensitive information learned after crossing the wall.

During the writing process, investment bankers are not allowed to be present when analysts conduct surveys on issuersilluviumusers; Analysts can verify the authenticity and accuracy of relevant factual information involving the issuer with the issuer and investment banking personnel, but the two parties cannot exchange investment analysis contents such as profit forecasts and valuations in the bid report and the scope of the issuance pricing; Analysts should also and fully refer to the issuer's prospectus and the review opinions of the stock exchange to make risk warnings.

At the same time, the "Guidelines" also put forward corresponding requirements for IPO roadshows. Before the IPO prospectus is published, analysts are not allowed to conduct project roadshows to investors planning to participate in strategic placements, but can attend roadshows organized by issuers and lead underwriters, but cannot express opinions and opinions.

After the IPO prospectus is published, until the project is determined and the issue price is announced or the issuance is terminated, except for the lead underwriter who can conduct roadshows and promotion, each securities company is not allowed to invite or arrange the issuer's directors, supervisors, senior managers and other employees directly or in the form of external consultants to participate in various investor exchange activities, including but not limited to roadshows, one-on-one exchanges, and conference calls in the name of expert exchanges.

In addition, the "Guidelines" also put forward requirements for securities companies to entrust parent companies or subsidiaries, and underwriting syndicate members to write bidding reports, as well as relevant internal management systems, self-discipline management measures, etc.