Beijing Stock Exchange completes customs clearance test tomorrow, the initial trading volume may be 15 to 30 billion yuan

Since September 2, the Beijing Stock Exchange has gone all out to implement the preparatory work for the opening of the market. Currently, the Beijing Stock Exchange is ready to open the market, and the market is scheduled to open on November 15.

On November 11, the National Equities Exchange and Quotations announced that, in order to verify the technical readiness of various market participants’ technical systems for the opening of the Beijing Stock Exchange, a customs clearance test was conducted on November 13.

Beijing Stock Exchange Quotes

Update frequency is every 3 seconds

According to the test notice, the National Equities Exchange and Quotations, the Beijing Stock Exchange, China Clearing, Shenzhen Stock Exchange, and China Securities Index Co., Ltd. jointly set up a test environment for the market to conduct customs clearance tests. All scenarios are subject to the business scenarios that took effect on November 15th. For example, the market update frequency of the Beijing Stock Exchange is every 3 seconds; the stocks listed on the Beijing Stock Exchange (the stock abbreviation starts with N) do not have a price increase or decrease. When a temporary suspension is triggered, the Beijing Stock Exchange will issue a temporary suspension announcement; the original selection Tier shift stock price limit remains unchanged at 30%, etc.

The test also requires that qualified investors who have been submitted in the previous period can trade the stocks of companies listed on the Beijing Stock Exchange. The functions of the securities company’s peripheral system and the information business market system meet the technical specifications. The basic level and innovation level of the national equity transfer system stock trading, the market is normal, etc.

“All preparations are basically in place, and the Beijing Stock Exchange is on the line and ready to go.” said Zhu Haibin, assistant general manager of Essence Securities Research Center.

From the perspective of equity attributes, the Beijing Stock Exchange launched 81 companies, of which private companies accounted for the largest number, accounting for as high as 85%. From a geographical point of view, Jiangsu was selected 12, ranking first, followed by Beijing and Guangdong, and Zhejiang had three.

Up to now, at least 8 public offering funds have reported innovative products that have been invested in the Beijing Stock Exchange. The reported fund products are all hybrid funds that are regularly opened for two years. As of October 28, there were 31 public fund products that can be invested in the New OTC Market, from 13 fund companies.

In addition, in order to promptly introduce the characteristics and rules of the Beijing Stock Exchange to market players, the Beijing Stock Exchange held a special training on system interpretation.

Ten companies

The median issued price-to-earnings ratio is 18.7 times

Wang Hanfeng, chief strategist of CICC, and Li Qiusuo, executive general manager of the research department, recently released a research report that it is recommended to pay attention to 10 companies that have completed public offerings and other procedures and will be listed directly on the Beijing Stock Exchange.

According to the research report, the ten companies are Jingsai Technology, Keda Automation, Zhonghuan Co., Ltd., Tongxin Transmission, Dadi Electric, Zhisheng Information, China Engineering Consulting, Hanxin Technology, Guangdao High-tech, and Henghe Co., Ltd.These companies were listed in accordance with the selection level in the early stage, and all adopted the model of cash payment and fixed price issuance. The median issuance price-earnings ratio is 18.7 times, and the issuance valuation range is[11.3，47.1], The average fund-raising is 180 million yuan, and the fund-raising range is[1.1，2.7]100 million yuan comes from information technology (6 companies), industry (3 companies), and optional consumption (1 company).

In addition to the above ten companies, another company, Yoshioka Precision, has also completed the preliminary listing process, but it is slightly later than these ten companies. As of November 10, the selection layer has listed 71 companies, which will be transferred to the Beijing Stock Exchange, mainly concentrated in machinery, electronics and other sectors, with a total market value of 274.3 billion yuan, a circulating market value of 108.5 billion yuan, and a median price-earnings ratio of 31.3 times.

Initial turnover

It may be around 15 billion to 30 billion yuan

On November 10, the median turnover rate of selected companies was 1.0%, and on the same day the Sci-tech Innovation Board and ChiNext Board were 2.3% and 3.8% respectively. After landing on the Beijing Stock Exchange, the initial turnover rate will be significantly higher than that of the previous selection layer: on the one hand, the initial market attention may be higher, which is expected to bring about active trading; on the other hand, the Beijing Stock Exchange is more refined at the liquidity level. There are more system optimizations for the selection of layers, such as allowing more types of institutional investors to participate in the investment of the Beijing Stock Exchange, lowering the participation threshold for individual investors of the Beijing Stock Exchange, and so on.

The overall performance of the above ten companies is expected to be relatively positive in the initial stage of listing on the Beijing Stock Exchange. There are three main reasons: the initial market attention is high, and it is not ruled out that there will be a periodical valuation premium; the significant improvement in liquidity will also affect the valuation of the Beijing Stock Exchange. It is expected to play a certain boost; the overall valuation of the above companies is not high (the current price-earnings ratios of the Sci-tech Innovation Board and ChiNext are 69 times and 50 times respectively). The nature of subsequent corporate performance still depends on the company’s fundamentals, growth and other factors, and it is expected that differentiation will gradually appear.

It is expected that the above companies will have a limited impact on the overall performance and liquidity of the A-share market in the initial stage of listing on the Beijing Stock Exchange. At present, the total market value of the selected layer is less than 300 billion yuan. According to estimates, even based on the assumption of an initial turnover rate of 5%-10%, the initial turnover of the Beijing Stock Exchange may be around 15 billion to 30 billion yuan, accounting for the total A-share market turnover. 1.3%-2.7% of the value (calculated based on an average turnover of 1.1 trillion yuan in the last ten trading days), the impact is relatively small.

Linkage with the Beijing Stock Exchange system

29 adjustments to business rules of the National Equities Exchange and Quotations System

In accordance with the principles of overall coordination and system linkage between the Beijing Stock Exchange and the basic and innovative layers of the NEEQ, the National Equities Exchange and Quotations recently revised 29 business rules including the “Regulations for Information Disclosure of Companies Listed on the National SME Share Transfer System”. Released on the 12th.

This revision has made adaptive adjustments to the relevant rules concerning the stock listing, continuous supervision, transaction supervision and comprehensive market management of the National Equities Exchange and Quotations System (National Equities Exchange and Quotations System), and deletes regulations related to the selection layer. To ensure the orderly connection of various businesses and rules after the opening of the Beijing Stock Exchange.

The above-mentioned business rules shall come into effect on November 15th, the day when the Beijing Stock Exchange opened.

In view of the fact that after the opening of the Beijing Stock Exchange, the review of the selection of the issuance of the selected layer will be shifted as a whole, the National Equity Exchange Corporation simultaneously abolished 13 relevant business rules.

On November 12, the National Equity Exchange Corporation also issued the business rules and supporting guidelines for the directional issuance of convertible bonds under the National Equity Exchange System, which will come into effect on November 15.

The National Equity Exchange Corporation stated that the convertible bonds have both debt and equity properties and are more compatible with the characteristics of the new third board market. The National Equity Exchange Corporation will continue to promote the optimization of the basic layer and the innovation layer system and service innovation, and enhance the function and vitality of market financing , To better support the innovation and development of listed companies.Text/Reporter Liu Shenliang