More and more listed companies use idle funds to buy financial management.
On February 8, Citic Securities Company Limited(600030) announced that according to the use plan and actual rhythm of the company’s A-share allotment fund, it is planned to use the temporarily idle 8 billion yuan for the purchase of financial products. At the end of January, Citic Securities Company Limited(600030) A-share allotment just raised 22.4 billion yuan.
Citic Securities Company Limited(600030) said that in order to further improve the use efficiency of funds and make rational use of idle raised funds, cash management should be carried out on the premise of not affecting the company’s daily operation and ensuring the safety of raised funds, so as to better maintain and increase the value of the company’s funds.
Chinese reporters of securities companies noted that listed companies are more keen to buy financial management with idle funds. Data show that in the past year, more than 1200 listed companies have invested about 1.28 trillion yuan to buy financial products. Among them, 10 listed companies have invested more than 10 billion yuan in financial management.
Mou Guohong, head of the Central China Securities Co.Ltd(601375) Research Institute, told reporters that on the one hand, the purchase of financial products by listed companies can indeed improve the utilization efficiency of funds, but on the other hand, it is also suspected that funds are idling in the financial system.
Citic Securities Company Limited(600030) invest 8 billion yuan of idle funds to buy wealth management
At the end of January, Citic Securities Company Limited(600030) completed the allotment and fund-raising of a shares, raising a total of about 22.4 billion yuan. Citic Securities Company Limited(600030) has stored the raised funds in a special account in accordance with the provisions of the guidelines for the supervision of listed companies No. 2 – regulatory requirements for the management and use of raised funds by listed companies and the guidelines for the self discipline supervision of listed companies on Shanghai Stock Exchange No. 1 – standardized operation, and has communicated with the sponsor The bank that deposits the raised funds has signed a tripartite supervision agreement on the storage of the special account for raised funds.
According to the use plan and actual rhythm of the funds raised by Citic Securities Company Limited(600030) A-share allotment, it is proposed to increase the investment in subsidiaries by 5 billion yuan. Due to the prior approval procedures of the regulatory authorities for the establishment and capital increase of subsidiaries, some funds must be used after obtaining the regulatory approval, and the rest must be invested according to the business capital needs of subsidiaries and after completing the relevant approval process, It is expected that some funds will have a certain idle period.
The 3 billion yuan to be used to strengthen the construction of information system shall be used in batches according to the construction progress of the company’s information system.
Citic Securities Company Limited(600030) said that in conclusion, the company expects some A-share raised funds to have a certain idle period. In order to further improve the use efficiency of funds and make rational use of idle raised funds, the company plans to carry out cash management within the maximum amount of 8 billion yuan (including 8 billion yuan) without affecting the company’s daily operation and ensuring the safety of raised funds, so as to better maintain and increase the value of the company’s funds.
Citic Securities Company Limited(600030) investment products with high security, good liquidity and investment period of no more than 12 months, including bank certificates of deposit, time deposits, structured deposits, appointment deposits and bank financial products. Such investment products shall not be pledged, and the special settlement account for products (if applicable) shall not deposit non raised funds or be used for other purposes.
Citic Securities Company Limited(600030) said that the company’s use of some idle raised funds for cash management was implemented on the premise of ensuring that the investment plan of raised funds would not be affected, the normal turnover needs of the company’s project construction of raised funds would not be affected, and there was no behavior of changing the purpose of raised funds. At the same time, timely cash management of the temporarily idle raised funds can improve the use efficiency of funds, increase the cash investment efficiency of the company and seek more investment returns for the shareholders of the company.
the reporter found that for listed securities companies, there has been no announcement of other securities companies using idle funds to buy financial products in the past two years. Not only securities companies, but also listed financial enterprises, including banks and insurance, rarely issue announcements on using idle funds to buy financial products.
more than 1200 listed companies spend 1.28 trillion on financial management
Chinese reporters from securities companies noted that A-share listed companies have always been keen to use idle funds to buy financial products in order to improve capital utilization efficiency.
Data show that in the past year, a total of 1266 listed companies (all non-financial enterprises) have invested 1.28 trillion yuan to buy all kinds of financial products. These products include structured deposits, call deposits, bank financial management, brokerage financial management, etc.
In terms of the amount of financial products purchased, the cumulative amount of 10 listed companies exceeded 10 billion yuan. Among them, one exceeded 30 billion yuan and two exceeded 20 billion yuan.
The listed company announced at the end of January that it would use 7.5 billion yuan for cash management. Name of this cash management product: Industrial And Commercial Bank Of China Limited(601398) structured deposit, China Construction Bank Corporation(601939) structured deposit. Cash management period: 110 days, 91 days and 180 days.
It is understood that Aecc Aviation Power Co Ltd(600893) previously considered and approved the proposal on using idle self owned funds for cash management, and agreed that the company and its subsidiaries use idle self owned funds for cash management without affecting normal operation. The maximum amount of cash used in this cash management shall not exceed 20 billion yuan. Within the validity period of the resolution, the fund limit can be used on a rolling basis.
Aecc Aviation Power Co Ltd(600893) the announcement said that as of the end of January this year, the company had invested a total of 32 billion yuan in the last 12 months to buy financial products, and the actual principal recovered was 22.7 billion yuan, but the principal not recovered was 9.3 billion yuan. The actual income was 188 million yuan.
In this regard, Mou Guohong, head of the Central China Securities Co.Ltd(601375) Research Institute, told reporters that the cash management of idle funds held by listed companies through the purchase of financial products is conducive to improving the efficiency of fund use and thickening the company’s performance. On the one hand, the projects raised by listed companies have a certain construction period. Secondly, in the macroeconomic downturn, the company lacks confidence in business development. It is also a rational choice to use “idle” funds for safer bank financial management. In addition, banks actively solicit deposits from listed companies through the structural deposit method with “fixed + floating” income characteristics, which has also attracted many listed companies to invest in them. The purchase of financial management can further enhance their mutual trust and cooperation.
“It is worth noting that the financial management of listed companies also has an adverse impact on the real economy. The idling of funds in the financial system makes it impossible for funds to be invested in the development of the real economy, resulting in a waste of resources, and does not match the orientation of the capital market to serve the real economy.” Mou Guohong said.
