“一查就撤”成为历史是现场检查制度完善的必然结果

Core Insights - The announcement from the China Securities Association regarding the third batch of IPO companies for on-site inspections in 2025 includes two companies, Electric Power Construction New Energy and Yueya Semiconductor, both newly accepted in September 2023. This brings the total number of companies selected for on-site inspections this year to 16 [1] - Unlike previous years, none of the 16 companies selected for on-site inspections this year have withdrawn their applications, indicating a significant change in behavior compared to past trends where withdrawal rates often exceeded 50% [1] - The phenomenon of "withdraw upon inspection" in previous years was largely due to the influx of low-quality companies attempting to enter the market, which led to many companies choosing to withdraw when selected for inspections [1] Summary by Sections On-site Inspection Changes - The lack of a responsible mechanism in the past allowed problematic IPO companies to evade inspections by withdrawing their applications, leading to the prevalence of the "withdraw upon inspection" phenomenon [2] - The current year has seen a shift, with companies remaining confident in their applications due to stricter IPO reviews and the withdrawal of many problematic companies, leaving behind those that believe they meet the IPO requirements [4] Regulatory Improvements - The revised "On-site Inspection Regulations for IPO Companies" issued by the China Securities Regulatory Commission on March 15, 2024, emphasizes accountability, stating that withdrawal of an application does not halt the inspection process or prevent regulatory actions based on findings [4] - This new regulation effectively closes loopholes that previously allowed companies to escape scrutiny, making it clear that withdrawing an application will not shield them from inspections or consequences [4][5] Future Implications - Companies that choose to withdraw upon inspection may inadvertently signal their own weaknesses, leading to more stringent scrutiny from regulatory bodies [5] - The expectation is that the "withdraw upon inspection" practice will gradually become a thing of the past, reflecting the improvements in the regulatory framework and the overall quality of companies entering the market [5]