Research On Due Diligence From The Perspective Of STAR MARKET Registration System

In January 2019,the China Securities Regulatory Commission issued the "Implementation Opinions on Establishing a STAR MARKET(Sci-Tech innovation board)and Pilot Registration System in the Shanghai Stock Exchange";in July 2019,the STAR MARKET was officially opened;in March 2020,the new "Securities Law" Formally implemented,clarifying the direction of reform of the registration system.The establishment of the STAR MARKET and the advancement of the registration system reform are important measures to implement the national innovation-driven strategy,improve the capital market system foundation,and promote high-quality economic development.During the pilot registration process of the science and technology board,the China Securities Regulatory Commission(CSRC)is responsible for the issuance and registration of the stocks of the STAR MARKET,and the exchange is responsible for the review of the issuance and listing of STAR MARKET.The reform of the registration system with information disclosure at the core has brought about innovations in supervision concepts and supervision methods.Facing the new supervision concept and supervision method,the difficulty of due diligence of sponsors in the implementation of the registration system has become the key point of research.This article starts from the actual needs of the sponsor's IPO project,and explores the difficulties and solutions of the due diligence project from the perspective of the STAR MARKET registration system.It provides valuable references for sponsors and other intermediary agencies that conduct due diligence on the science and technology board.Under the pilot reform of the registration system,the focus of STAR MARKET IPO due diligence focus on issues such as the basis for determining the actual controller,the advanced nature of the core technology,the basic quality of financial accounting,and the effectiveness of related party verification.This paper summarizes the theoretical basis and regulatory basis of due diligence through the use of research methods such as literature exploration,inductive analysis,comparative analysis,and case analysis.It expounds the current operation status of China's STAR MARKET and the key points of the due diligence of regulatory authorities;The GEM project is taken as an example to analyze in detail the difficulties and main problems encountered in the due diligence of H company's IPO project,and to propose a complete solution and a practical operation method.This article believes that IPO due diligence can alleviate the asymmetry of information in the stock issuance market and protect the interests of investors;the advantages of the US registration system are the dual registration system and the regulatory concept with investor protection at the core.The STAR MARKET registration system has formed the embryonic form of dual registration system and investor protection,and the overall operation is stable;Case H company meets the science and technology board listing standards;H company's IPO due diligence has no actual controller identification basis,advanced core technology There are four major difficulties,such as sexual judgment,identification of original statements,and low efficiency of related party verification.Aiming at the difficult issues in the due diligence process of Company H,combined with the registration system audit concept,in strict accordance with legal requirements,and referring to the feedback from the STAR MARKET,the innovation proposed the evaluation criteria of "two impacts and two effective" without actual controller identification.Basis;put forward the "two perspectives,three stages" verification ideas to resolve the difficulty of advanced core technology judgment;put forward the "two points,one verification" verification ideas to solve the problem of identifying the original report;and use Python program design to realize the suspected related party screening To solve the problem of low efficiency of related party verification.Based on the above investigations,it is recommended that sponsors should build a solid foundation for due diligence,attach importance to the study of feedback case difficulties,build a due diligence system,grasp the focus of the STAR MARKET review,attach importance to technical means verification,and effectively improve due diligence capabilities in three aspects.Fully adapted to the requirements of due diligence for the STAR MARKET.