Wu Xiaoshou: IPOs should neither be angelized nor ICUized.

Mr. Wu Xiaochou, the director of the National Institute of Finance, Renmin University of China, and the director of the China Capital Market Institute, pointed out on June 16 that in the 1980s and 1990s, China's capital market served to provide services and convenience for state-owned enterprises to raise funds to solve their problems. Now, it serves to provide services and convenience for high-tech enterprises to raise funds. The essence of the concept is the same, with the change only in the form of the enterprise, from state-owned enterprises to high-tech enterprises. Therefore, the IPO has started to bear the function of angel investment. However, Wu Xiaochou believes that this will lead to market misalignment. "We cannot angelize the IPO of China's capital market." Because once an enterprise has a new idea, it needs a large amount of capital to develop it. This actually requires multiple perspectives and assessments such as due diligence, risk identification, and whether it can form a new industry in the future. But once it is handed over to the market, "it is very difficult to judge." Of course, the IPO cannot be turned into an ICU. Wu Xiaochou said that if an enterprise is about to die, it thinks of raising capital through an IPO to save it. In this way, the IPO has been turned into an ICU, and the enterprises that go public in such a market are full of risks and uncertainties.