Category: Money Tips Date: 2006-03-06
Sally teacher's words
Yesterday, the "listed corporate securities issued Regulations (draft)" to investors and the community to seek constructive opinions or suggestions. It is a major event in the securities market, but also basically completed the share reform around the goal of this year, which began a reform and innovation in the development of an important measure. Therefore, our staff at the 17, from various angles on the "management approach" to the interpretation in order to help investors to understand the "management approach." As a small investor how to respond to changes in refinancing of listed companies, we ask the professional to make an analysis.
Thoughtful
For "the issuance of securities of listed companies management approach (draft)" in the spirit, small and medium investors can make some aspects of the following focused.
Do not blindly subscribe for additional shares
In the past, listed companies issuing new shares, using the secondary market price discount approach. Secondary market price of a company 10 yuan, the price may be additional 9 yuan. On the surface, a listed company giving benefits to the investors, in fact investors into a very passive position. If the 1:1 ratio of issuance, and the old shareholders have priority rights to subscribe, then its ex-rights price of 9.5 yuan. If an investor to give up the subscription, then the loss of his shares will be 0.5 yuan per share in the market. Therefore, he had only two choices: either to subscribe for new shares, diluting costs; or sell at a loss out of the game. This is the China Securities Regulatory Commission spokesman said diluted the investing public's interest.
According to the spirit of the draft, public issuance will be issued with the principles of market value. Draft of Article XIII provides that: "the issue price should not be less than the IPO announcement letters of intent before the 20 trading day average price or the stock's average price of the previous trading day" is "to collect non-public shares of a particular object" should be consistent with one of the conditions. If the market is stable, then open the additional price, should be the secondary market prices are pretty. If small investors want to overweight the stock, then he can be roughly equal the price of shares purchased from the secondary market. Only in the secondary market prices have increased, investors from the market of shares is a cost-effective. Of course, those who want a large number of shares of the company's investors, is a different matter. This is clearly more conducive to the protection of small shareholders. As the China Securities Regulatory Commission spokesman said: "In the distribution market under the principle of the success of the company issuing shares, not just simply look at the past results of operations, but also on investors in the company's overall situation and future development of recognition. Issue price of the principle of distribution will increase the difficulty of the issuer to increase lead underwriter of the underwriting pressure, but also to strengthen investor financing behavior of listed companies re-bound to provide a strong guarantee. "
Non-public offerings of stock are also small and medium investors in the relevant
Allow listed companies to non-public offering of securities is a revised "Securities Act" to implement the spirit. In the past, listed companies, there is targeted to specific investors, issued in the case. Listed company's non-public offering of securities as a system put in place, reflected in the revised "Securities Act". The revised "Securities Law" Article states: "to the specific targets of securities issued more than 200 people total," are public offering. This means that objects to specific securities issued by the accumulated dissatisfaction with 200 people, and all belong to the non-public offering. For listed companies in specific circumstances, the provisions of the draft Basic Law is more stringent. Its thirty-seventh section, said: listed company's non-public offering of shares, "object does not release more than 10." This is to some extent, it can be restricted to non-public listed companies to issue stock too.
Listed company's non-public offering is not nothing to do with the small and medium investors. 38th draft stipulates: "The listed company's non-public offering of stock, shall meet the following requirements: (a) the pricing issue price of not less than 20 trading days before the benchmark stock average's 90%; ( 2) The second issue of shares since the end of the date of issuance, may not be transferred within 10 months; controlling shareholders, actual controllers and the controlled enterprise subscription of the shares may not be transferred within 30 months. " Therefore, the strategic investors of shares of the costs might be lower than the cost of secondary market investors holdings. In addition, after the expiration of the lock, the strategic investors to sell stocks, but also has the potential to put pressure on the market. But the listed company's non-public offering of shares of listed companies increased the financing channels, which allow small investors to reap the profits.
Self-determination is needed to subscribe for allotment
Draft of listed companies did not make provision for allotment of financial indicators. And listed companies to disclose additional issuance of convertible corporate bonds as the financial requirements are lower than the target, so that more compelling.
Failure mechanism for the introduction of provisions for issuance will allow the risk of placement of shares of listed companies has increased considerably. Draft of Article XII states: "Adoption of the provisions of the Securities Act of consignment were published" and "to the original shareholders to subscribe for shares" should be consistent with one of the conditions. Draft further provides that: "consignment period ends, the original shareholders, the number of shares proposed placement does not meet the amount of 70 percent, the issuer when the issue price, plus the balance in accordance with bank deposit interest return over the same period have been subscribed to shareholders." Thus, allotment specification published, and the success of distribution does not necessarily linked. If the issue fails, then investors will not have to subscribe for the formation of any loss. From possible risks of view, placement of shares of listed companies to make decisions, but also cautious than previously. However, the small and medium investors to judge is still very important. As the number of placements can be seen having a trading system, then, when there you are not very willing to subscribe for share placements, it is expected that other investors allotment may reach 70% the number of the proposed placement, if you give up share placements, would be brought ex losses. This is the case the previous allotment of listed companies is still similar.
Stock options attached to warrants market of corporate bonds will be developed
Listed companies to issue stock options attached to the financial indicators of corporate bond requirements, but also not very high. 27th draft stipulates that: "the last three fiscal year to achieve an average annual distributable profits of not less than corporate bonds issued this year's interest" and "the last three fiscal year, cash flow generated from operating activities Net an average of not less than the amount of corporate bonds issued this year's interest "is generally listed companies to issue stock options attached to corporate bonds should be consistent with conditions.
To allow listed companies to issue stock options attached to corporate bonds, in the mainland stock market is a system innovation. Attached to stock options and convertible corporate bonds, corporate bonds, an important distinction has been reflected in the draft 28th article: "attached to stock options in corporate bonds, corporate bonds and stock options were in line with stock exchange listing requirements, it should be publicly traded. "and convertible bonds, share transfer is a bundle of rights and corporate bonds listed. Because the bonds, the right to split the rights and warrants, so attached to corporate bonds, stock options are more flexible and investor-friendly disposal of features. Therefore, if a listed company issuing stock options attached to corporate bonds will also bring new opportunities for investors. Of course, the investor warrants are exercised after the impact of expansion to achieve should also be estimated.
With corporate bonds attached to the introduction of stock options, warrants market will usher in new opportunities for development. Currently listed Angang JTC1 (030001. SZ), Wu Liang YGC1 (030002. SZ), Steel and Vanadium PGP1 (038001. SZ), Vanke HRP1 (038002. SZ), Valin JTP1 (038003. SZ), Wu Liang YGP1 (038004. SZ), Baoshan Iron and Steel JTB1 (580000. SZ), Wuhan Iron and Steel JTB1 (580001. SZ), Baotou Steel JTB1 (580002. SZ), Handan Iron and Steel JTB1 (580003. SZ), first CTP1 (580004. SZ), raw water CTP1 (580994. SZ), Baotou Steel JTP1 (580995. SZ), Shanghai field JTP1 (580996. SZ), China Merchants Bank CMP1 (580997. SZ), the airport JTP1 (580998. SZ), Wuhan Iron and Steel JTP1 (580999. SZ), are as a product of split share structure reform. With the advance of split share structure reform, these warrants will be gradually completed its historic mission. Attached to the introduction of corporate bonds, stock options, warrants market is to enter the new blood. Of course, the put warrants further development and the investors can be concerned about.
