Intelligent “Weapon” in The Financial Industry

Reporter / Li Lisha

With the transformation of society, the national financial industry has gradually replaced the status of industry and manufacturing, and has become the leading industry in society. Since the beginning of the 21st century, Chinese business circles have been constantly producing corporate stars. The development of these outstanding enterprises is advancing rapidly, and their wealth accumulation speed is getting faster and faster. Under the background that the trend of globalization is becoming more and more obvious and the social environment is becoming more and more complex, the development of all enterprises cannot bypass this level – listing. The challenges faced by enterprises when they go public are huge, but the opportunities are endless.

In recent years, the IPO of domestic companies has shown some drawbacks, and the preliminary examination has become increasingly strict. For example, issuers or related parties conduct malicious collusion with their customers or suppliers in private exchange of interests to achieve false growth in revenue and profits. The company used funds outside the system to pay for goods, under-counted the quantity and amount of raw materials purchased, deducted current costs, and fabricated profits. In addition, more companies use technical means or other methods to instruct related parties or other legal persons or natural persons to pretend to be Internet customers to conduct transactions with issuers to achieve false growth in income and profits, which disrupts the order of the capital market. For the financial industry, IPO review is conducive to controlling corporate risks and promoting market stability. DING Guisheng, an expert in the financial field for many years, has taken the lead in the research and development of intelligent IPO listing review software since 2019, and some of his achievements have been put into application and achieved outstanding results.

Intelligent “Weapon” in The Financial Industry

1. Introducing artificial intelligence to reduce decision-making costs.

The corporate regulatory compliance review system researched by DING Guisheng can use artificial intelligence algorithms to automatically detect corporate listing violations. The system analyzes listing criteria based on domain experts to determine the factors involved in regulations and standards. Then, use the artificial intelligence algorithm to intelligently recommend the regulatory standards required by the enterprise according to the full text of the regulations, summarize the knowledge and experience of experts in the IPO field, design a customized artificial intelligence expert reasoning algorithm, and finally generate an intuitive report to help decision makers judge whether the listed company complies with the relevant regulations or standard requirements. Through “Enterprise Regulation Compliance Review System Based on Artificial Intelligence Algorithm”, enterprises can reduce the heavy workload caused by manual work in traditional risk management, reduce the risk of non-compliance and decision-making costs of financial enterprises, and improve the competitiveness of enterprises.

2. The evaluation of listed companies is more accurate.

In addition, DING Guisheng designed the “Enterprise Management Evaluation System Based on IPO Application of Listed Enterprises” based on the actual situation of my country’s securities market and the operation characteristics of my country’s listed companies, and drawing on the evaluation methods of domestic and foreign listed companies’ business performance. The evaluation system takes financial benefits as the core, integrates asset operation, solvency and development capabilities and other aspects, and sets up multi-level evaluation indicators. The system is not easy to be manipulated by operators, can take into account the cost of equity capital, more accurately reflect the operating performance of listed companies, and adapt to the requirements of the new economic environment. The scientific evaluation system provides an effective value measure for the parties involved in mergers and acquisitions of listed companies, ensures the simplicity of evaluation and the accuracy of evaluation results, and maintains the openness, fairness and impartiality of China’s capital market. Scientific and comprehensive evaluation has become a key link to ensure and improve the asset quality of listed companies, and to give play to the important role of mergers and acquisitions of listed companies in my country’s economic restructuring and industrial upgrading. The system has been put into use and has been praised by senior IPO expert Hong Jun: “The system developed by Mr. DING integrates a variety of IPO evaluation methods, which can improve the scientificity and operability of selecting high-quality IPO companies in investment banking business. To provide a scientific decision-making method for the decision-making process of investment banks, Mr. DING’s research and development results represent the development direction of future IPO evaluation.”

3. Refinancing is also guaranteed after the company goes public.

For listed companies. DING Guisheng also developed a corporate refinancing plan formulation system, which includes four modules: business acquisition module, financing product acquisition module, reverse factoring module and digital credit certificate module. The system can realize the connection of financing needs and resource sharing between financial institutions and enterprises, which can not only improve the service level, but also promote the development of enterprises. At present, DING Guisheng has cooperated with a number of financial institutions through the promotion platform to carry out the practical application of this innovative system. According to the feedback, the system effectively solves the problems such as the issue limit caused by the misjudgment of the company’s economic scale, the idle capital of the listed company, and the complicated financing process. The system helps Sinocelltech to successfully refinance. Sinocelltech Group Limited is an innovative biopharmaceutical R&D company founded by Dr. XIE Liangzhi, an internationally renowned expert in biopharmaceutical R&D and industrialization, and an expert in the overall group of major new drug creation projects. Through refinancing, Sinocelltech Group Limited raised a total of 2.2 billion yuan. The company was able to smoothly promote innovation in life sciences and engineering technology, solve technical difficulties and bottlenecks in the development and production of new drugs, and obtain industry-leading new technologies. Obviously, this innovation system indirectly provides strong financial support for the subsequent healthy and stable development of listed companies. 

Photo: DING Guisheng at work (second from right))

DING Guisheng’s innovative achievements have been widely recognized by major enterprises and peers in the financial industry, but he is not proud of it. He said: “Although technology has promoted a virtuous circle of IPO, there is still a lot of room for improvement in my country’s entire financial supervision field. The accuracy of the model and the timeliness of early warning still need to be further improved, and the depth and breadth of the system also need to be improved. In the face of new situations, new problems and new challenges that continue to emerge in the reform, I will improve and upgrade system functions according to actual business needs, and continue to use technology to empower supervision and improve efficiency.” It is believed that China’s financial industry, with elite pilots like DING Guisheng, will surely create good results.

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