Lifting The Ban Is Now Small Climax Block Trading Continued Hot ETF Reduction Restrictions Public Fund Scale Contraction

This week, another round of restricted climax was lifted.

According to wind data, on November 18th -24, a total of 43 A share listed companies were lifted and the number of tradable shares reached 16 billion 171 million shares, and the total market value of circulation was as high as 157 billion 633 million yuan. This is the second highest peak for lifting the market value this year.

The highest market value of lifting the embargo was Shanghai bank. In November 18th, 6 billion 508 million of the restricted shares were lifted, corresponding market capitalization was as high as 59 billion 349 million yuan, and 4 billion 590 million shares were lifted and the market value of the lifting of the ban was as high as 31 billion 857 million yuan.

Among them, the lifting of the ban on China's PICC led to a great stir in the capital market. In November 18th -11 20, the total number of PICC dropped by 11.93%.

With the advent of the small climax of the lifting of the ban, the reduction behavior of listed companies has also attracted more attention. In twenty-first Century, the economic news reporter noted that, recently, many listed companies that had lifted the ban had entered the reduction boom.

Block trading activity

According to wind data, this year, as of November 20th, the number of listed company shareholders intends to reduce or reduce the implementation of the record up to 4909, of which, since November, the reduction or reduction of the record is 779, many of which have just 2019 years in the sale of shares lifted shareholders.

If the 378 million shares of MINDRAY medical treatment were lifted in October this year, there were 15 major transactions in November alone, with a turnover of up to 737 million yuan, of which 12 of the bulk transactions were party seats.

Reduction of the current trend, block trading as the preferred way of reducing shareholder holdings of listed companies, has become increasingly active in the A share market. Since November 2019, shareholders of listed companies have seen 1024 transactions. Among them, only one day in November 20th, the A share market appeared 47 block transactions, involving a turnover of up to 1 billion 112 million yuan.

"Compared with the specific shareholders themselves in the two tier market reduction, through bulk trading not only reduces the number of holdings, but also has little impact on stock prices, so many shareholders prefer to reduce transactions through bulk transactions." A private agency in Southern China has been interviewed.

Specifically, since November, most of the listed companies in bulk trading have a higher discount rate. According to the collation of twenty-first Century economic report reporters, the 1024 major transactions, the transaction price relative to the closing price of the day has only 88 transactions, while the parity transfer is only 171, and the rest are all discounted transactions, totaling 765, accounting for up to 74.71%.

Among them, Nanyang share price with the highest discount rate, in November 18th, Zheng Zhongnan, the controlling shareholder and actual controller of the company, made up 23 million shares by reducing the total amount of shares of the company through the block trading. The average reduction price was only 13.77 yuan (closing day price was 15.30 yuan), which was 18.18% higher than the closing price of Nanyang shares, and the total turnover was 317 million yuan.

This is not the case. Since November, the discount rate has been as high as 268 of the 10% transactions, involving 115 listed companies.

"Our business is bound to be a discount, not a strategic stake. Now we are going to have to wait until the expiration of 6 months to sell it, so the operation needs some technology. We will offer different prices according to the quality of the company. The price will be between 15% off and 5% off, depending on the quality of the company. For example, the market value will be 5 billion or more than 8 billion, with normal business operations and good financial results. The above private equity agencies said.

ETF fund scale contraction

It is worth mentioning that, in addition to the reduction in bulk trading, after the new rules were introduced in 2017, many shareholders of Listed Companies in the market realized the disguised reduction of shares through subscription of ETF funds.

According to statistics, in the first half of the year, there were as many as 27 A share listed companies in the field of ETF switching, exceeding the sum of the previous year's purchase. Up to now, more than 50 major shareholders of listed companies have implemented the exchange buying action or announced the replacement plan, with a total scale of tens of billions of yuan.

In the first half of the year, ZTE, 37 mutual entertainment and other listed companies had the behavior of shareholders buying ETF. Among them, ZTE's largest shareholder Zhongxing new communications Co., Ltd. had completed the subscription to the share of ICBC Credit Suisse 300ETF share in May. The average share price of the A share stock used to subscribe to the fund share was 29.77 yuan / share, and the subscription market value exceeded 1 billion yuan.

But not long ago, the Shanghai and Shenzhen stock exchange simultaneously voicing that it would strictly regulate the ETF stock subscription business. "Referring to the new regulations to reduce the stock subscription behavior of the ETF fund, there are no situations in which the relevant shareholders of the listed companies use stock to subscribe to ETF, and there is no case of reduction in disguised form or reduction in violation of regulations". The replacement operation has little effect on the two tier market.

Subsequently, a market view pointed out that through the subscription of ETF disguised reduction behavior was blocked, or to encourage more shareholders to reduce holdings through other ways, such as block trading.

However, through interviews with some business people, the reporter learned that after the restriction of ETF's "reduction" channel, the volume of business cut by bulk trading has not changed significantly.

"Through the subscription of ETF, the scale of reduction in disguised form is relatively small, because many businesses can not do so unless there are public fund channels." The above private equity agencies pointed out.

In November 20th, a private company engaged in financing consultancy business in Shanghai also said: "now (reduction) has limited sales for 6 months, many of them are in the market, and the market is short of funds. If the big market is good, there will be more capital, but fewer shareholders will be reduced.

On the same day, a large brokerage business department in Southern China also pointed out to the twenty-first Century economic news reporter: "we have no advantage in changing ETF, and there are not many public funds for cooperation, and there are not many public awareness funds. However, after ETF was restricted, the size of the public offering fund had some shrinkage.

It is worth mentioning that in November, a number of listed companies such as NavInfo, network technology and aviation power issued a notice to terminate the subscription of fund shares.

In the meantime, the ETF of the Great Wall's fund, such as Jing Shun, the Great Wall's 180 weight, and so on, was terminated on the market. The GF fund extended the deadline for raising the 100ETF of GF, Guangdong, Hongkong and Macau, from November 8th to December 6th, and the League of Nations Security Fund also extended the deadline for the CF's CSI 300ETF to November 19th.