The recommendation institution not only recommended the stock, but also participated in the underwriting and follow-up investment, and then the research report that sang more came out.
Recently, Citic Securities Company Limited(600030) released a research report on “the most expensive new share in history” Hemai shares. According to the research report, the share price of Hemai shares can reach 1000 yuan. Citic Securities Company Limited(600030) is the lead underwriter of Hemai shares, underwriting 363 million yuan of abandoned new shares and investing 112 million yuan. China Mobile is similar to this, Citic Securities Company Limited(600030) , China International Capital Corporation Limited(601995) are both sponsor and underwriter, and recently released the read more research report.
According to the relevant provisions of China Securities Association, the sponsor and lead underwriter of IPO shall not release relevant reports within 40 days after the issuance price is determined. The above case has exceeded the 40 day silence period.
However, the above provisions are for the sponsor or lead underwriter of the IPO. Is there a silent recommendation period or a silent recommendation period? People from several research institutes told the securities times that it is not clear at present.
sponsor and investment underwriting sing one more stop
Recently, Citic Securities Company Limited(600030) released a research report entitled “Hemei shares: Micro inverse nova, great potential”. According to the research report, Hemai Co., Ltd. is deeply engaged in the field of component power electronics. It is a leading manufacturer of micro inverters in the world. Its products have the advantages of cost, applicability, performance and reliability, outstanding cost performance competitiveness, and continues to expand its sales network and customer base, with rapid business growth. The research report predicts that the company’s earnings per share (EPS) from 2021 to 2023 will be 4.93 yuan, 12.47 yuan and 22.50 yuan respectively, with a target price of 1000 yuan (corresponding to 80 times PE in 2022), the first coverage and a “buy” rating.
It is reported that Citic Securities Company Limited(600030) is the main underwriter of the IPO of Hemai shares, with an investment of 363 million yuan to underwrite 650000 shares of Hemai shares; In addition, it also conducted follow-up investment through its subsidiaries, with an allocation amount of 112 million yuan. Therefore, Citic Securities Company Limited(600030) has invested 475 million yuan in Hemai shares.
In addition to Hemai shares, Citic Securities Company Limited(600030) is also optimistic about the share price of China Mobile.
Recently, Citic Securities Company Limited(600030) released the Research Report “how to see China Mobile” α》。 According to the report, China Mobile is a high-quality core asset with both technology and consumption attributes. The Growth Logic of 5g era is reconstructed and has great allocation value. It gives China Mobile A shares and Hong Kong shares 1.3 times and 1.0 times the average price to book ratio (PB) in 2022 respectively, corresponding to the target price of 75 yuan and HK $70 respectively, maintaining the “buy” rating.
China International Capital Corporation Limited(601995) also released the Research Report China Mobile (600941. SH) / China Mobile (0941. HK): chbn multi wheel drive, leading operators and leading the high-quality development of the industry. The report said that for the first time, China Mobile was rated as outperforming the industry, with a target price of 81.00 yuan.
Citic Securities Company Limited(600030) , China International Capital Corporation Limited(601995) are the co sponsors and lead underwriters of China Mobile. Together with other underwriters, the two companies underwritten a total of more than 700 million yuan of abandoned new shares of China Mobile.
is this singing more compliant?
Some market investors believe that there may be irregularities in the above-mentioned acts of recommendation, underwriting and follow-up investment, as well as issuing more research reports.
In this regard, there are relevant provisions in the code of practice for publishing securities research reports implemented by China Securities Association in June 2020. Article 24 of the code of practice states that when issuing securities research reports, operating institutions shall establish and improve the information separation wall system in accordance with the relevant provisions of the Interim Provisions on the issuance of securities research reports and the guidelines on the information separation wall of securities companies, and follow the arrangement of silent period.
A recommendation institution or lead underwriter acting as the issuer’s initial public offering of shares shall not publish a securities research report related to the issuer within 40 days from the date of determining and announcing the issue price.
The pricing announcement date of Hemei was December 9 last year, and the release date of Citic Securities Company Limited(600030) Hemei bullish report was February 8, with an interval of two months. The pricing announcement date of China Mobile was December 21 last year. The release time of Citic Securities Company Limited(600030) and China International Capital Corporation Limited(601995) reports was February 8, with an interval of nearly 50 days.
If calculated according to the silence period of 40 days, the release of the research report is compliant. However, the reporter also noted that the above provisions are for the sponsor or lead underwriter of IPO. However, in the case of both follow-up investment and underwriting by the recommendation institution, is the silent period unified with this or otherwise stipulated? Many researchers told reporters that it is not clear at present.
“don’t rely too much on the Research Report”
Some researchers also said that underwriting includes underwriting and consignment. Therefore, for underwriting stocks, the above 40 day silent period should also be observed. In case of follow-up investment, the provisions of “relevant securities research reports shall not be published within 40 days from the date of determining and announcing the issuance price” shall still apply.
“However, for listed companies with a shareholding ratio of more than 1% of the securities firm or its holding subsidiaries, if the securities firm publishes the Research Report of the listed company, it needs to indicate in the research report that the shareholding ratio is more than 1%.” A researcher told reporters that this provision has nothing to do with the silent period.
“The research report needs to be subject to compliance review before being distributed.” A person from a medium-sized securities firm Research Institute told reporters, “whether the research business or researchers are in a silent period is one of the important contents of the compliance audit of the research report. The research report that is not subject to the OECD compliance audit is prohibited from being distributed.”
“The stocks underwritten by securities companies themselves should be allowed to be covered by research reports after the quiet period.” A broker told reporters, “there are many star projects in large investment banks. If they don’t give up the research report, why should the research institute eat?”
Another interviewee told reporters that the research report has basic normative requirements, but is not responsible for the rise and fall of stocks. Research reports in the market are both bullish and bearish, but the final market trend is not determined by a research report. “Investors should know more about the market information, especially the trend of real gold and silver trading of institutions. The information of the research report can be used for reference, but the investment should not rely too much on the research report.”
