Under the tide of breaking and abandoning the purchase of new shares, the pricing ability and professional ability of securities companies need to be improved. According to the statistics of the economic information daily, as of April 24, 114 new shares (including the shares of the Beijing stock exchange) were listed this year, and 32 fell below the issue price on the first day of listing, accounting for 28%. The broken stocks are mainly concentrated on the science and innovation board and the gem. Among the 33 breaking companies, from the perspective of the initial lead underwriters, Citic Securities Company Limited(600030) and China International Capital Corporation Limited(601995) initial lead underwriters have a large number of breaking. In addition, Weijie chuangxin-u, Puyuan jingdian-u and Aojie technology-u had the largest declines on the first day of listing, with 30.93%, 26.08% and 20.99% respectively. Their initial lead underwriters were China Securities Co.Ltd(601066) , Guotai Junan Securities Co.Ltd(601211) and Dahe securities (China), Haitong Securities Company Limited(600837) . Insiders said that in the current situation of the increase in the breaking of new shares, the increase in the abandonment of investors and the superposition of the pressure of underwriting and follow-up investment by securities companies will force securities companies to improve the professional ability and pricing ability of project screening.
CITIC, China International Capital Corporation Limited(601995)
initial lead underwriter breaks the most
From the perspective of the initial lead underwriter of the company that broke off on the first day of listing, the maximum number of projects recommended by Citic Securities Company Limited(600030) is 7, that of China International Capital Corporation Limited(601995) is 6, that of Haitong Securities Company Limited(600837) is 4, and that of China Securities Co.Ltd(601066) is 4.
Among them, Citic Securities Company Limited(600030) initial underwriters are Haichuang pharmaceutical, Yahong pharmaceutical, Longyuan Power, Jingwei Hengrun, Laite optoelectronics, Han’s CNC, Junxin Co., Ltd. and Zhenlei technology China International Capital Corporation Limited(601995) the initial underwriters are anda intelligence, Zhongyi technology, science and technology navigation, Rendu biology and wankai new materials Haitong Securities Company Limited(600837) the initial underwriters are Aojie technology, Maiwei biology, Fengyi technology and Geling Shentong China Securities Co.Ltd(601066) the initial underwriters are Weijie Chuangxin, Shouyao holding, Jingwei Hengrun and softcom power Citic Securities Company Limited(600030) and China International Capital Corporation Limited(601995) investment banking have always been in a leading position. According to the annual reports of the two companies in 2021, the income from securities underwriting business of Citic Securities Company Limited(600030) and investment banking business of China International Capital Corporation Limited(601995) were 7.753 billion yuan and 6.295 billion yuan respectively, with a year-on-year increase of 19.5% and 11.87% respectively.
With the advancement of the reform of the registration system, the number and scale of A-share IPO issuance in 2021 hit a record high. According to the annual report, Citic Securities Company Limited(600030) a-share IPO and refinancing projects have a market share of 15.83% and 19.29%, and many lines in the investment banking sector rank first in the industry. In 2021, Citic Securities Company Limited(600030) completed 194 A-share lead underwriting projects in China, with a lead underwriting amount of 331917 billion yuan (cash and assets), a year-on-year increase of 5.84% and a market share of 18.26%, ranking first in the market. With the reform of the registration system, Citic Securities Company Limited(600030) continued to increase the coverage of IPO customers such as the science and innovation board and the gem, completed 68 IPO projects, issued a total of 85.922 billion yuan, with a market share of 15.83%, ranking first in the market.
according to the 19952021 annual report, 520 A-share IPOs were completed in 2021, with a financing scale of RMB Zhejiang Aokang Shoes Co.Ltd(603001) billion, an increase of 24.7% year-on-year. In 2021, as the lead underwriter, the company completed 23 A-share IPO projects, with a lead underwriting amount of RMB 100538 billion, ranking second in the market. Continued to consolidate the advantages of large projects and took the lead in completing A-share IPO projects including China Telecom Corporation Limited(601728) , Baiji Shenzhou.
Although the investment banking business of securities companies performed well, the regulators stressed the responsibility of intermediaries on many occasions, and the investment bank has also become the hardest hit area of fines for securities companies. According to the data of Yi Dong, in 2021, the regulators issued 266 tickets, pointing to 75 securities companies, and 78 investment bank tickets accounted for the highest proportion.
In 2021, the CSRC issued a warning letter to China International Capital Corporation Limited(601995) because China International Capital Corporation Limited(601995) failed to diligently urge the issuer to clean up the relevant gambling agreements and fulfill the disclosure obligations in accordance with the regulatory requirements in the process of recommending Chengdu Xgimi Technology Co.Ltd(688696) initial public offering and listing. In that year, the CSRC also took regulatory measures to conduct regulatory talks on the issuer because China International Capital Corporation Limited(601995) in the process of recommending Lenovo Group Co., Ltd. to apply for listing on the science and innovation board, the CSRC did not exercise due diligence and perform sufficient verification procedures for the identification of the issuer’s science and innovation attribute.
underwriting and follow-up investment
securities companies suffer serious floating losses
With the frequent breaking of new shares, investors often abandon the purchase of new shares, and the proportion of abandonment has increased. According to the current issuance system, some shares abandoned by online investors are underwritten by securities companies. In addition to the pressure of underwriting, securities companies also face the pressure of follow-up investment.
On April 19, Jingwei hengrun-w fell 17.35% on the first day of listing Citic Securities Company Limited(600030) and Huaxing securities are the co lead underwriters. The two securities companies purchased more than 4 million shares of the company through underwriting and follow-up investment, with a floating loss of more than 85 million yuan on the first day of IPO. Weijie chuangxin-u fell by 30.93% on the first day of listing. The underwriter China Securities Co.Ltd(601066) subscribed 1046400 shares, and the number of allocated shares was 1202400, with a floating loss of more than 50 million yuan.
The data show that the statistics from the data that came from the data that came from the initial broker’s participation in the placing after the IPO. As of April 24, the statistics from the statistics from the data that came from the data from the data from the data from the data from the data from the initial broker’s participation in the placing. As of April 24, the biggest losers were Tcl Technology Group Corporation(000100) 010666 \ \ Western Securities Co.Ltd(002673) and Guotai Junan Securities Co.Ltd(601211) securities. The loss of and Haitong Securities Company Limited(600837) , Gf Securities Co.Ltd(000776) and CICC’s wealth floating losses exceeded 50 million yuan.
One side is the breaking of new shares, and the other side is that investors “vote with their feet” have abandoned the purchase of new shares. On the evening of April 17, nasion micro, which is about to land on the science and innovation board, disclosed the issuance results. Online investors gave up the subscription of 3381527 shares, the number of shares abandoned accounted for 13.38% of the total issuance, and the amount of shares abandoned reached 778 million yuan, all of which were underwritten by the underwriter Everbright Securities Company Limited(601788) .
From the perspective of market conditions, not all abandoned stocks performed poorly. From April 18 to 22, a total of 15 new shares were listed, of which 6 broke on the first day. Known as the most expensive new share of this year, nano chip micro landed on the science and Innovation Board on April 22, with an increase of nearly 20%. As of the closing of the day, it was reported at 259.58 yuan, an increase of 12.86%. Based on the highest intraday price of the stock of 275.02 yuan, the new signer can earn 22510 yuan; According to the closing price, the floating profit of the first signing reached 14790 yuan. It is worth noting that CNOOC, which was abandoned by a large number of retail investors earlier, also performed well after listing.
Senior investment bankers said that under the current situation of breaking new shares, the increase of investors’ abandonment of purchases and the pressure of underwriting and follow-up investment by securities companies will force securities companies to improve the professional ability and pricing ability of project screening. On April 21, during the 2022 annual meeting of Boao Forum for Asia, Fang Xinghai, vice chairman of the CSRC, said that the reason why some corporate IPOs have fallen below the issuance price recently is not that there are too many IPOs, but that the pricing ability needs to be further improved. Fang Xinghai said that he believes that after more foreign capital enters the market, especially long-term institutional investors, international leading institutions will further provide services for the market, the pricing and investment level of the market will be further improved, and the market will be more resilient and dynamic.
