Data show that in the last two weeks (March 14 to March 27), 15 new shares issued by inquiry on the science and innovation board and gem were listed, and 8 broke on the first day of listing, accounting for 53%. More than half of the new shares "lose money", causing investors' concern.
Many experts interviewed believed that the breaking of many new shares on the first day of listing was an example, which was mainly affected by factors such as the downturn of the stock market and the recurrence of the epidemic. The large-scale breaking of new shares will not become the norm. After the implementation of the new inquiry regulations, the pricing power of new shares will be returned to the market, and the pricing will gradually return to rationality and value.
frequent breaks will not be the norm
According to data statistics, after the implementation of the new inquiry rules, as of March 27 this year, among the 123 listed new shares issued by inquiry, 31 were broken on the first day of listing, accounting for more than 25%.
It is worth noting that the breaking probability of 53% in the past two weeks is extreme compared with the average of 25%.
Pei Juan, head of the capital market department of the securities investment bank of the Federal Reserve, believes that the main reason for the recent breaking of many new shares is the downturn of the overall market environment. Since this year, the Shanghai and Shenzhen stock markets have fallen sharply, which has a great negative impact on the listing performance of new shares. Especially since March, affected by the epidemic and geopolitical conflicts, the A-share market has been relatively depressed in the short term, and the breaking of new shares has a great relationship with market sentiment.
"The amplitude of new shares is no longer affected by a variety of secondary factors." Tian Lihui, Dean of the Financial Development Research Institute of Nankai University, told the Securities Daily.
"In the Hong Kong stock market with a high degree of marketization of IPO pricing, the breaking rate on the first day of IPO in 2021 was as high as 44.8%." The head of the capital market department of Minmetals securities told the reporter of Securities Daily that with the further marketization of the pricing of new shares in China, the breaking of new shares will promote the return of new shares to rationality, and the pricing of new shares will change from game behavior to the judgment of the real value of new shares.
The person in charge said that the breaking of new shares is the best touchstone, which reflects the market-oriented pricing under the registration system and breaks the thinking pattern of "invincible new shares".
"Large scale breaking is a short-term phenomenon." Pei Juan believes that the market has the ability of self balance and will adjust dynamically. In the long run, the pricing of new shares will return to rationality.
Tian Lihui believes that with the adjustment of primary market valuation, the improvement of secondary market conditions and the realization of economic recovery, large-scale break will not become the norm.
online innovation tends to be rational
After the implementation of the new inquiry regulations, the "myth" of making new profits without losing has been broken, and the investment strategies of individual investors and inquiry institutions have changed significantly.
The reporter found that from January 2021 to the implementation of the new regulations on inquiry, among the new shares issued by inquiry, the average number of effective subscription households for the online pricing issuance of 125 new shares on the science and Innovation Board was 5.54 million, and the average number of effective subscription households for 98 new shares on the gem was 14.17 million. In contrast, since the implementation of the new regulations, the average number of new online households of 59 new shares on the science and innovation board has been 5.33 million, and the number of new online households of 65 new shares on the gem has been 13.39 million, a decrease of 210000 and 780000 respectively compared with that before the new regulations.
In terms of the scale of online purchase abandonment, before the implementation of the new inquiry rules, the average number of new shares on the science and Innovation Board was 28300 shares. After the implementation of the new rules, this number rose to 227400 shares, an increase of 704%; The number of new shares on the gem was 25100, an increase of 457% to 139700 after the new regulations.
In this regard, industry experts believe that the decline in the scale of online innovation and the increase in the number of abandoned purchases reflect the change of investment strategy. Innovation is no longer blind, but targeted and selective investment in new shares. "Investors should innovate rationally and carefully analyze the information of new shares. They should not apply for new shares at will. In view of the time and professional ability of small and medium-sized investors, they can achieve 'expert innovation' and rational innovation by purchasing new funds." Tian Lihui said.
In addition, after the implementation of the new regulations on inquiry, inquiry institutions also tend to be rational, pay more attention to the quality of new shares, and the phenomenon of "group quotation" has been improved.
The relevant person in charge of Minmetals Securities said that on the whole, after the implementation of the new rules on inquiry, institutional inquiry has become more cautious and rational. Considering the possibility of "breaking", institutional investors no longer focus on the number of new share applications and focus on the "quality" level with valuation as the core.
"After the implementation of the new rules on inquiry, the concentration of institutional quotation has been significantly reduced. Some institutional investors have withdrawn from the inquiry business of new shares." Pei Juan said that the "Bo shortlisted" strategy is no longer effective, which will force institutional investors to pay attention to the fundamental research of new shares and improve their research and valuation ability. At the same time, under the background of the first day break of some new shares and the decline of expected returns, the quotation institutions that lack the research pricing ability and blindly quote high prices to "win the shortlist" began to leave the market gradually, which is conducive to the survival of the fittest.
