Securities Times reporter Cheng Dan
Under the comprehensive registration system, the issuance of new shares tended to be stable. In the past 4 days, the first batch of new stocks under the main board registration system did not break out or go crazy. The 10 new stocks rose between 20% and 186%. The market-oriented valuation and pricing system has withstood the test.
Recently, there have been new share issuance subscriptions one after another, and the normalization of issuance has become a set trend. According to market participants, the comprehensive registration system gives the market the right to choose, the market mechanism of survival of the fittest will be strengthened, and the function of price discovery will be realized as much as possible. Companies with good sustainable operation capabilities and better governance will grow stronger; Companies with poor face and relying on concept hype will be eliminated.
The first batch of main board registration system
IPOs run smoothly
On April 10, the first batch of 10 new shares of the main board registration system officially landed on the A-share market. Stomatology, Zhongdian Port, Haisen Pharmaceutical, Nankuang Group, and Shaanxi Energy represent the official implementation of new trading regulations under the comprehensive registration system.
As of the close on April 13, during the four days of trading, the above-mentioned 10 new stocks did not break out or go crazy. In terms of issue prices, the overall increase was between 20% and 186%. Among them, CLP Port had the highest increase. , followed by Dengkang Dental, Haisen Pharmaceuticals, and Parkson, and Shaanxi Energy, which had the least increase, also had a 20.1% increase.
Overall, the first batch of registered new shares on the main board opened smoothly, and the market-based valuation and pricing system has withstood the test. From the perspective of the new stock issuance stage, the market-based pricing issuance under the registration system has broken the hidden restriction of “23 times the price-earnings ratio” in the past, and the pricing flexibility has been greatly improved. The 10 main board new stock market earnings ratios are between 20 times and 40 times. The lowest issuing price-earnings ratio is CITIC Metal (20.21 times), and the highest is Shaanxi Energy (90.63 times). The total funds raised by the 10 companies are 21.211 billion yuan.
According to the new trading rules, there is no price limit for the first 5 trading days after the listing of new shares registered on the main board, and the price limit is 10% from the 6th trading day, and the first day of listing can be included in margin trading and securities lending The target, qualified investors, can carry out financing and financing transactions on the first day of listing of new shares, which also means that the stock price of new shares fluctuates greatly after listing.
Li Zhan, Chief Economist of the Research Department of China Merchants Fund believes that under the comprehensive registration system, the hidden red line of 23 times the price-earnings ratio of the issuance has been broken, and investors’ optimistic expectations will be reflected in the pricing of new shares in advance, and the issuance price of new shares will be correspondingly high. Therefore, the upside after listing may be limited.
“The expected income from new ventures will be significantly differentiated, which will test investors’ analytical ability and stock selection ability. It is not advisable to blindly launch new strategies. It is recommended that investors should focus on companies that have mastered core technologies and are in line with the country’s long-term development strategy. .” Li Zhan said.
Normalized issuance has become a set trend
In recent days, the China Securities Regulatory Commission has successively approved the approval of the initial public offering stock registration of Aerospace Nanhu, Weston, Jiangsu Xiangteng and other enterprises, and another enterprise Milison and Minstar have applied for purchases. The normalization of issuance has become a set trend.
Deloitte China predicts that in 2023, there may be 430 to 510 new shares issued in the A-share market, with a fundraising amount of about 620 billion to 699 billion yuan. Among them, the Science and Technology Innovation Board may have 120 to 140 new stocks, raising 305 billion to 340 billion yuan; it is estimated that there will be 150 to 170 new stocks on the Growth Enterprise Market, raising 185 billion to 210 billion yuan; There are only 80 new shares, raising 111 billion to 125 billion yuan; the Beijing Stock Exchange has about 100 to 120 new shares, raising 20 billion to 24 billion yuan.
The calculation results of the research team of CITIC Securities show that after the full implementation of the stock issuance registration system, the new stock market will achieve a smooth transition. It is estimated that the annual financing amount of the A-share market will be about 550 billion to 600 billion yuan.
“Under the comprehensive registration system, the pace of listing new shares will be accelerated, and the scarcity of new shares will be greatly reduced.” A person in charge of the asset management department of a securities firm said that the market prefers targets with better fundamentals and higher growth; Market value will become an important indicator reflecting scarcity. The more scarce a company is, the more potential it has to become a stock with a large market value and become the core of stock market transactions.
It is worth noting that, in line with the full implementation of the reform of the stock issuance registration system, the reform of the basic system of the capital market will be further improved to promote two-way expansion of investment and financing, increase the intensity of medium and long-term funds entering the market, and superimpose the deepening of delisting rules and the improvement of delisting mechanisms. Unimpeded, will effectively promote the dynamic balance of the primary and secondary markets.
It is particularly important to speed up the reform of the investment side and build a market environment in which long-term funds are “willing to come and stay”. The China Securities Regulatory Commission held the 2023 system work conference, and once again emphasized guiding more medium and long-term funds into the market.
Li Zhan believes that the current A-share market is still dominated by retail investors, with a relatively high proportion of short-term funds, which to a certain extent has caused irrational declines in the A-share market to occur from time to time. Next, we need to take multiple measures to attract more institutional investment. Those who enter the market can better play the role of long-term capital “ballast stone”.
Chen Li, chief economist of Chuancai Securities, believes that for medium and long-term funds, the differentiated tax and fee system for different holding period arrangements can be further refined, and preferential income tax, stamp duty, and transaction fees can be given to entities with longer holding periods. and other tax incentives.
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