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China Fund News reporter Zhao Xinyi

The reporter learned from the industry that the China Securities Association recently issued the "Measures for Evaluating the Professional Quality of Securities Companies' Financial Advisory Business for Major Asset Restructuring (Revised Draft)" to securities companies and solicited opinions.

In terms of content, this revision involves five aspects, includingAdjust the timing standards for registration-based projects included in the annual evaluation scope; strictly implement the selection criteria for Class A companies and increase the minimum requirements for the number of projects; improve the scoring method for project quality indicators; improve the scoring method and weighting of business scale indicators; delete the business innovation indicators and related expressions of the approval system。

The draft amendment states that securities companies rated as Class A should not only have a comprehensive score in the top 20%, but also have strong market influence.It is clarified that "in principle, securities companies with scores ranking in the top 20% and a number of projects above the industry average are classified as Class A"。

Five major revisions

This revision adjusted the timing standards for registration-based projects included in the annual evaluation scope.

The revised explanation points out that considering that the projects that have been disclosed but not accepted have not entered the review and registration process, it is impossible to rate the project quality.The registration-based projects included in the annual evaluation scope will be adjusted from projects that disclose independent financial advisor reports for the first time during the evaluation period to projects that are accepted by the exchange during the evaluation period.。

In addition, this revision also strictly stipulates the selection criteria for Class A companies.Increase the minimum number of projects required. Requires securities companies to be rated as Class A, In addition to the comprehensive score being in the top 20%, it should also have a strong market influence。

This revision also improved the scoring method for project quality indicators.Use the average of the quality scores of each project as the score of the company's project quality index, the termination situations such as project withdrawal will be reflected in the quality score of individual projects, and the reasons for termination will be differentiated according to the exchange's review rules and scored in three differentiated levels.

Specifically, for projects with a quality rating of A, B, or C that have not been terminated, the corresponding scores are adjusted to 50 points, 40 points, and 25 points. Terminated projects will be assigned 40 points, 20 points, and 0 points according to different circumstances.

In terms of the scoring method and weight of the business scale indicator, this revision is to more accurately reflect the differences in business scale of different companies. The business scale will be scored one by one according to the ranking of each company, so that the scores can change in a step-by-step manner, avoid abrupt changes, and retain the score differences but not be too disparate.

This revision also deleted the relevant statements about business innovation indicators and approval system.

Last year, 5 securities firms were rated A

In order to guide securities companies to effectively perform their "gatekeeper" responsibilities and promote the improvement of the quality of listed companies, the China Securities Association revised and issued the "Measures for the Evaluation of the Professional Quality of Securities Companies' Financial Advisory Business for Major Asset Restructuring" (China Securities Association [2022] No. 125) in May 2022, and carried out the evaluation work in 2022 and 2023 based on this.

The China Securities Association previously announced the results of the 2023 evaluation of the professional quality of securities companies' financial advisory business. A total of 41 securities companies participated in the evaluation, including 5 Class A, 28 Class B, and 8 Class C.

The five securities firms that received Class A are Guotai Junan Securities, CICC, China Securities, China Securities, and CITIC Securities.

It is worth mentioning that listed companies continue to receive policy support for improving investment value through mergers and acquisitions. The new "Nine National Regulations" encourage listed companies to focus on their core businesses and use a combination of mergers and acquisitions, restructuring, equity incentives and other methods to improve development quality.

The "Opinions on Strengthening the Supervision of Securities Companies and Public Funds and Accelerating the Construction of First-Class Investment Banks and Investment Institutions (Trial)" issued by the China Securities Regulatory Commission in March this year also proposed thatSupport leading institutions to become better and stronger through mergers and acquisitions, restructuring, and organizational innovation.

Editor: Captain

Review: Xu Wen