The breaking of new shares has become the norm. Since the beginning of 2022, the IPO of new shares has been frustrated. As of January 17, 14 new shares have been listed this year, of which 4 shares broke on the first day, accounting for 28%. The myth of "beating the new and invincible" is no longer. Investors who blindly beat the new should open their eyes and carefully screen the quality of the enterprise.
Tian Lihui, President of the Institute of financial development of Nankai University, said that under the background of the continuous promotion of the reform of the registration system, the breaking of new shares will not be an accidental phenomenon. In the future, with the improvement of market pricing ability, the game of new shares will return to a new balance, and the breaking frequency of new shares may be reduced. The breaking of new shares is jointly determined by factors such as the bull and bear state of the market and the quality of individual stock enterprises.
Recently, the phenomenon of breaking new shares has increased. On the 14th, the new shares of Aojie technology broke sharply on the first day of listing, with a closing price of 109 yuan, down more than 33.75% from the issue price of 164.54 yuan. At the beginning, Aojie technology, which was signed with joy, lost more than 20000 yuan on that day.
Since this year, a total of 14 new shares have been listed, of which 4 shares broke on the first day. In addition to Aojie technology, Yahong medicine, Xinghui huancai and Weike technology broke on the first day of listing, with breaking ranges of 23.41%, 9.12% and 6.07% respectively. If we lengthen the time, the normalization of new share issuance began in the fourth quarter of last year. Since the first day of a more intensive listing in late October 2021, the probability of new share issuance under the registration system has indeed increased compared with previous years. Previously, the A-share market was mostly new.
Statistics show that from last year to January 17, 2022, 26 new shares broke on the first day of A-share listing, of which 20 broke after October last year.
IPO pricing will become more and more perfect, and breaking will be a normal situation. On September 18 last year, the CSRC, the Shanghai and Shenzhen Stock Exchange and the Securities Industry Association simultaneously issued a series of adjustment rules for issuance and underwriting under the registration system, which promoted the balanced game between buyers and sellers and improved the market-oriented level of IPO pricing by improving the high price exclusion ratio, canceling the pricing, breaking through the requirement of delaying the issuance when the "four numbers are lower", and strengthening the supervision of inquiry and quotation behavior.
In the past, the phenomenon of holding together to lower the price led to the low inquiry and pricing of offline new shares. Almost all new shares rose sharply on the first trading day of listing, and some even soared two or three times, indicating that the inquiry of offline new shares is unreasonable. With the frequent breaking of new shares, the era of "lying and earning" by closing your eyes and playing new shares in the past is over.
Chen Li, chief economist of Chuancai securities and director of the Research Institute, said that the first day of the listing of many new shares was the result of the dual influence of the new rules of the registration system and the company's fundamentals. After the implementation of the new rules on inquiry, the problem of institutions holding down the issue price has been improved, and the issue price of new shares tends to be reasonable. Listed companies can raise more funds through IPO to maximize their interests. However, some institutional investors have not yet adapted to the new rules, and tend to report higher prices or even issue at a premium in order to win the lot successfully, resulting in the phenomenon of breaking new shares after listing.
The breaking of new shares on the first day of listing is largely the choice of the market. In the current new share market, listed companies not only can tell stories, but also need solid performance to get market recognition. The market will no longer pay for "high prices".
According to the data, a total of 10 unlisted stocks have been issued. Investors need to adjust their thinking on how to select new stocks.
Yang Delong, chief economist of Qianhai Kaiyuan, believes that under the new share inquiry system of the registration system, some institutions will raise the price to a certain extent in order to be shortlisted. It is precisely because the issue price is too high, coupled with the recent relative downturn in the secondary market, the phenomenon of breaking new shares occurs from time to time. Investors should not blindly make new ones, but should analyze them in combination with fundamentals.
In fact, as investors' enthusiasm for playing new has cooled down, many stocks have a high abandonment rate. For example, Baiji Shenzhou's previously published listing and issuance results show that its online investors give up the subscription of 1032500 shares. If calculated according to the number of shares issued by the company of 115 million shares, the amount of abandonment reaches 199 million yuan.
"Under the registration system, market-oriented pricing is improved, and institutional quotation needs to return to value rationality from the shortlisted game." A broker said that the differentiation of new shares listed in the future will become more and more obvious, which will be a test for institutions participating in offline placement. After all, it is easy to suffer losses if they blindly quote high prices. The inquiry mechanism should promote professional institutions' true understanding of the value of new shares. In the future, it is necessary to establish a qualified bidder mechanism to encourage those who quote accurately in line with the long-term average value of new shares, At the same time, implement the main responsibility, promote professional construction, and further improve the pricing ability of institutions.
