Fang Xinghai’s speech releases reform signals

Fang Xinghai’s speech releases reform signals

On the first day of listing, the new shares attempted to “lock up”. Source: Beijing Commercial Daily “second stop” on the first day of listing, followed by multiple “one” daily limit boards. This “templated” trend of new shares after listing was broken.

On January 12, Fang Xinghai, vice chairman of the China Securities Regulatory Commission, raised significant concerns about the “recommendation of lifting the limit of the first day limit of new shares” and gave the market an expectation of reform of the new share issuance system.

In the eyes of most people, removing the limit on the first day limit of new shares will not only help alleviate the hype of the new shares, but also reduce the sharp rise and fall of the new shares and protect the interests of small and medium investors.

  Fang Xinghai’s speech releases the signal of reform On January 12, Fang Xinghai, vice chairman of the China Securities Regulatory Commission, attended the Twenty-third China Capital Market Forum’s speech on “Suggesting to Cancel the Limit of the First Day Limit of New Stocks”.Also being monopolized by the market is a reform signal released by the regulatory authorities.

  Specifically, on January 12, Fang Xinghai said at the 23rd China Capital Market Forum that “the price of new shares increased by 44% on the first day. There is no trading volume, and the price without trading volume is unreal and inaccurate.Price, artificial restrictions lead to unreasonable prices.

Moreover, there was no trading volume in the past few days, which was very unreasonable and limited trading. The issue of daily limit trading on the first day should be studied, and I personally think it should be cancelled. ”

  It is reported that the current limit on the first day of listing of new shares is the reform of the new share issuance system launched at the end of 2013.

On November 30 of that year, the CSRC issued the “Opinions on Further Promoting the Reform of the New Share Issuance System”, which clearly required the issuance of “improving the opening price formation mechanism on the first day of listing of new shares and the initial trading mechanism for new shares to be listed, and establishing a new stock issue price as a benchmark for comparison.The suspension system on the first day of listing has strengthened restrictions on new speculation. ”

  Wind data statistics show that for new shares listed before 2014, the first day of listing can achieve a breakthrough or increase a few times or even twenty or thirty times.

Later, in order to prevent and control the hype of new shares, maintain the level of market transactions, and protect the legitimate rights and interests of investors, the Shanghai Stock Exchange issued the “Notice on Further Strengthening the Supervision of the Initial Trading of New Shares” on December 13, 2013. According to the regulations, the first day of listing of new shares, theThe effective declared price in the auction stage shall not exceed 120% of the issue price and shall not exceed 80% of the issue price; the effective declared price in the successive auction stage shall not exceed 144% of the issue price and shall not exceed 64% of the issue price.

  On December 13, 2013, the Shenzhen Stock Exchange issued the “Notice on Matters Concerning the Temporary Suspension of Trading on the First Day of Listing of Initial Public Offerings” in order to effectively prevent the risk of trading on the first day of listing of initial public offerings and maintain the security market structure.Protect the legal rights and interests of investors, and stipulate that the effective bidding range for new shares on the first day of listing is the upper and lower 20% of the issue price. If the transaction price is enlarged or decreased for the first time from the opening price on that day to reach or exceed 10%, the temporary suspension of tradingFor 1 hour, if the intraday trading price rises or falls for the first time to reach or exceed 20% from the opening price of the day, the trading is temporarily suspended to 14:57.

  The trading of new shares on the first day of listing is not sufficient and practical. Although the reform of the new share issuance system has been implemented, although the new shares cannot increase several times on the first day of listing, they will basically have a “second stop”, followed by multiple “one” daily limit boards.The hype of sub-new stocks still prevails.

  Accompanying the hype of new shares is the low turnover rate on the first day of listing and the sharp rise and fall in the market outlook.

Wind data statistics show that before the reform of the new shares issuance system, the turnover rate of the first day of listing of new shares was mostly between 50% and 95%.The turnover rate is 86%; On the first day of listing, Dongtu Technology, which was listed on September 27, 2012, has a turnover rate of 68%; On the other hand, Anjie Technology, which was listed on November 25, 2011, has a turnover rate of 90 on the first day of listing%.

  After the reform of the new share issuance system, the turnover rate of new shares on the first day of listing was minimal.

For example, Huapei Power, which was listed on January 11, 2019, changed hands manually on the first day of listing.

177%; Longli Technology, which was listed on November 30, 2018, changed hands by inserting 0 on the first day of listing.

094%; For Huaneng Hydropower, which was listed on December 15, 2017, the first day of listing was 0.

18%.

Without sharp exit, after the reform of the new shares issuance system, the first day of listing of new shares reached full trading.

  From the perspective of a small private fundraiser in Beijing, the “second stop” on the first day of listing of new shares, followed by multiple “one” daily limit boards is an “abnormal” market behavior.

In addition, under the current issuance system, the fact that sub-IPO shares have soared sharply frequently.

Li Daxiao, chief economist of Yingda Securities, believes that due to the existence of new speculators, new chasers, and new enthusiasts, the listing of new shares will generally be overhyped. After that, small and medium investors chase after buying up, resulting in a round of plunge.Investors suffered heavy losses.

  Taking Chunguang Technology as an example, the company officially entered the A-share market on July 30, 2018 with an issue price of 18.

46 yuan / share, the company has obtained eight “one” daily limit board after listing, the company has always reached 61 intraday on August 28, 2018.

The high point of 98 yuan / share, but after that, the company continued to fall rapidly and continued to fall.

As of the close of January 13, 2019, the company closed at 30.

23 yuan / share.

According to a calculation by a reporter from Beijing Commercial Daily, if investors who chase after buying high still hold shares of Chunguang Technology, only one lot has now lost more than 3,000 yuan.

  The sharp rise of the new stocks and the plunge will ease a number of experts who told the Beijing Business Daily that cancelling the limit of the first day limit of new stocks will help reduce the market’s speculation on the new stocks and ease the sharp rise of the new stocks.

  Pan Xiangdong, chief economist of New Times Securities, pointed out in an interview with a Beijing Business Daily reporter that the IPO system is a substantial replacement for the market-oriented reform of the capital market. It is also a step for companies to enter the capital market for financing.An important way for companies to provide efficient financing.

However, the current IPO issue system has resulted in no trading volume in the secondary market on the first day of listing of new shares, artificially distorting the supply and demand relationship on the first day of listing of new shares, resulting in the closing price of new shares not being a true equilibrium price.

In the following trading days, the signal of excess demand for new shares will make investors expect prices to continue to increase. This expectation increases the demand for new shares and reduces the supply of new shares. In the end, the new shares continue to grow, and even the daily limit limit appears.Some investors are hyping the phenomenon of new shares.

“And the lifting of the limit on the first day’s limit of new shares will effectively alleviate the hype of the new shares to a certain extent.

Said Pan Xiangdong.

  Yang Delong, chief economist of Qianhai Open Source Fund, believes that although the limit of the new stock issuance limit system has inhibited the growth of the stock on the first day of listing, subsequent multiple daily limit boards have eventually caused the IPO premium rate to be too high.The rate far exceeds the reasons for mature markets.

Therefore, removing the limit on the first day limit of new shares can also effectively alleviate the sharp decline of new shares, which is an important step in the market-oriented reform of IPOs.

  In addition, a small private fundraiser in Beijing pointed out that on the first day of the listing of new shares, the price of the main board stopped and there were many billions of dollars in queue to buy, and this part of the funds may generally be queued for 7 or 8 days.In this case, a large amount of funds will be absorbed in the new shares, which is a waste of resources.

“If the limit of the daily limit for new shares is lifted, these funds will be free to come in and out, which will help release a portion of working capital.

Said the private equity firm.

  In addition, the above-mentioned private equity people also believe that the lifting of the limit of the first day of new stock restrictions should also be formulated while supporting the issue pricing mechanism, the market should be priced, so as to more effectively avoid the big stocks on the first day of the big rise or fall.

  Beijing Commercial 西安耍耍网 Daily reporter Cui Qibin’s horse change / Wen Lihuan / watchmaking