Today, China Mobile has attracted much attention from all parties for online and offline subscription in the A-share market, with an issue price of 57.58 yuan / share, or becoming the largest A-share IPO project in recent 10 years. This also means that the three operators will gather in “big a”. In addition, Chunli medical “Huia” applied for purchase yesterday, after it was listed on the Hong Kong Stock Exchange in 2015.
Red chip enterprises “return to a” run out of “acceleration”. In this regard, industry insiders have said that with the superposition of multiple factors, the “return to a” of red chip enterprises is timely and natural.
The scientific innovation board has welcomed the return of many “wanderers”. Last February, China Resources Microelectronics Limited(688396) successfully landed on the science and innovation board and became the first stock listed on the red chip. Since then, Galaxycore Inc(688728) , Semiconductor Manufacturing International Corporation(688981) and No. 9 company have successively returned to A-Shares and successfully listed on the science and innovation board.
In order to attract red chip enterprises, the policy continues to add weight and broaden the road for the “return” of more enterprises.
In March 2018, the CSRC issued the notice on Several Opinions on the pilot issuance of shares or depositary receipts by innovative enterprises in China, which made it clear that “pilot red chip enterprises are allowed to issue depositary receipts for listing in the domestic capital market according to procedures; pilot red chip enterprises with conditions for stock issuance and listing can apply for stock issuance and listing in China”.
In April 2020, the CSRC issued the announcement on the relevant arrangements for the domestic listing of innovative pilot red chip enterprises; In June of the same year, the Shanghai Stock Exchange announced the notice on matters related to the application of red chip enterprises for the issuance and listing of science and innovation board, which further facilitated the return of red chip enterprises.
On September 17 this year, the CSRC officially issued the announcement on expanding the pilot scope of domestic listing of red chip enterprises, which expanded the scope of pilot industries from 7 to 14. In particular, it mentioned that the application of red chip enterprises of great national strategic significance for inclusion in the pilot is not subject to industry restrictions.
Behind a series of policies is the acceleration of the reform of the registration system. The registration system has led to the expansion of the capital market, widened the channels of enterprise equity financing, effectively increased the proportion of direct financing, and accelerated the “capital profit” of the real economy.
During the year, the number of A-share IPOs and total fund-raising have set a new historical record. According to the statistics of IPO date, as of December 21, the number of A-share IPOs in the year had reached 504, an increase of 15.3% compared with 437 in 2020; The total fund-raising exceeded 500 billion yuan for the first time to 518.1 billion yuan, an increase of 7.8% over last year.
It can be seen that the growing capital market is injecting surging momentum into China’s high-quality economic development. After the three major telecom operators gather a shares, “three barrels of oil” is also expected to gather A-Shares (CNOOC, a Hong Kong listed company, announced on September 26 that it plans to apply for A-share issuance and listing). This not only sets an example for the return of red chips, but also creates a win-win situation for the market and investors. As Yang Jie, executive director and chairman of China Mobile, said at the IPO roadshow, “China Mobile will strive to become a high-quality target in the A-share market and return investors with better performance.”
Build a nest to attract Phoenix, flowers bloom and butterflies come from. I believe that with the continuous maturity and improvement of the A-share market, more and more excellent entity enterprises will land in the capital market and continue to write a new chapter of development.
China Mobile’s subscription today may become the largest IPO in nearly a decade
(Securities Daily)
