Category: Money Tips Date: 2006-03-14
According to media reports, the listed companies through stock reform of the machine bundled with equity-based incentives, "false start" phenomenon has attracted great attention of the SASAC and may lead to reinvent the wheel. Figures show that as of April 1, 2006 until, in the share reform program in the equity incentive travel has 23 listed companies.
The Chinese saying goes, is called the twisted and misrepresented chanting, and the more read the more crooked. This implies that, after, or good economics, the problem lies in chanting to humans.
Linked to the now vigorous stock reform, water, skin that had been equity incentive this is the good classics, but is now faced with the more twisted and misrepresented the risk of read more distorted.
According to media reports, the listed companies through stock reform of the machine bundled with equity-based incentives, "false start" phenomenon has attracted great attention of the SASAC and may lead to reinvent the wheel. Figures show that as of April 1, 2006 until, in the share reform program in the equity incentive travel has 23 listed companies, of which way the stock of the implementation of awards, 19 home exercise price of net assets as also the benchmark 19, account for 80%.
2 80% in violation of two explicit. A provision was in December 2005 the SASAC and the Ministry of Finance jointly issued by the state-owned enterprise reform and regulate the comments. In this opinion, the opening up of management holding, but it clearly is directed issuance of an incremental change, rather than holding the stock. A provision is January 6, 2006 China Securities Regulatory Commission promulgated the "Regulations Listed Companies equity incentive" in this provision is equally clear that the exercise price of stock options should take based on secondary market prices, whether incremental or the stock of the case today.
Of course, more importantly, 23 companies are 100% in violation of a pre-condition, this pre-condition is that equity-based incentives must wait until after the completion of share reform, rather than before or synchronous bundle.
Of course, the 23 listed companies, the reason equity incentive and stock reform simultaneous bundle is nothing but free-riding. Water in the relevant Zatan skin had pointed out that, stock reform has become a bus, everybody wants to try to get on, whether it is relevant or not relevant. Stock Exchange took the opportunity to carry the C of E, a major shareholder took the opportunity to carry debt-equity swaps, while the management of listed companies took the opportunity to carry holdings.
Everyone knows that the share reform is the size of the adjustments between the interests of shareholders, equity-based incentives between shareholders and management, balance of interests. But not everyone recognized that, for many of the major shareholders of listed companies and large shareholders, there is no difference, but for many of the state-owned listed companies, management is the so-called de facto control of major shareholders who become equity-based incentives executive stock reform initiative to promote a strong rhetoric. There is no equal opportunity, who would get up early go to the market? Equity-based incentives are not tied up with the voting shares of reform, how can muddle through in the future?
Have noted that the 23 "grab and run" is a six enterprises in the central enterprises, the SASAC has 4 under the jurisdiction of the Ministry of Finance under the jurisdiction of a 2. In this six central enterprises, there are three rows of the right equity incentive price to net asset-based, and only three rows of the right price based on market-based.
CITIC Securities, CITIC Anhe Sailing shares are the net assets of the three rows of the right price for listed companies.
CITIC Securities provides that, in stock at the same time reform of non-tradable shareholders 3,000 shares of CITIC Group, is temporarily assigned to the account in order to stimulate appraised net asset to the company executives. The total share capital of 2.482 billion CITIC Securities shares, outstanding shares of 540 million shares in 2005, the performance of 0.16 yuan per share, price of 8.15 yuan, net assets of 2.28 yuan, the lowest of history is also 4.14 yuan, net assets and the market price spreads reach 587 yuan, the difference is that 250% of net assets, 3.7 times book value.
CITIC Anhe against the price of CITIC Securities were 10:3.5 Major Holders, and CITIC Securities consistent equity incentive program, which provides shares to management reform at the same time to provide 1650 million shares, the exercise price to net asset basis. The net assets of CITIC Guoan is 4.69 yuan, total capital was 660 million shares, was 335 million shares outstanding, performance was 0.34 yuan, market price of 10.25 yuan, the historical low of 7.81 yuan. Market price and net asset spreads reached 5.56 yuan, 2.2 times book value.
Compared with the two CITIC, windsurfing shares a similar fashion, although the net assets as a line of human rights standards, but the row over the right of the scale is much lower, only 160 million shares, but also the performance of the provisions in 2006 and 2007 profit growth 30% to the right line. Sailing the total equity shares is 218 million shares, outstanding shares is 106 million shares, performance was 0.24 yuan, 3.37 yuan in net assets, the market price of 6.50 yuan. Market price and net assets of the spread of 3.23 yuan, almost 100%.
The purpose of split share structure reform is one of a unified pricing system, based on market value as the value of listed companies to consider standards for state-owned assets in the agreement to avoid the transfer of shares priced in the net assets resulting from losses. The net assets of equity-based incentives for the price, not only violate the relevant regulations, but also defeats the purpose of reform and stock is not the loss of state assets then what is it?
Is also a "false start" of the listed company, Sinochem International's share reform program provides for the phased provision of 2000 million of management incentives, the exercise price is 5.58 yuan. Sinochem International is the total share capital of 1.258 billion shares, outstanding shares of 4.76 billion shares, performance of 0.57 yuan, net assets of 2.46 yuan, the market price of 4.19å…? Market value and the exercise price of 1.39 yuan upside down. Sinochem International who were committed to the market because of a violation cast aside holdings, but the design of equity-based incentives are rhythmic, reflecting the option value. Hualian Integrated Ultra provides that if the 2004-2006 compound annual net profit up 25%, 700 million will be paid an additional incentive to the management of the price of an exercise price of 8. Hualian Comprehensive super is only 251 million of total equity shares, the outstanding shares of only 123 million shares, performance of 0.32 yuan, net assets reached 3.11 yuan, the current market price of 13.01 yuan.
OCT is a six central enterprises in the private placement warrants only to the implementation of equity incentive. As a combination of price, OCT tradable shares to the shareholders of delivery of 3.8 per cent of new shares of 10 warrants, the exercise price of 7 yuan, at the same time, OCT is also the backbone of the executives, including 50 million copies of warrants issued, line Like the right price is 7 yuan. The total share capital of OCT was 1.111 billion shares, outstanding shares is 503 million shares, the returns were 0.43 per share yuan, net assets, and 2.37 yuan, market value is as high as 13.35.
OCT and CITIC Securities Liutong Pan is the same, the net assets of roughly the same price, performance is much better than CITIC Securities, the stock is much higher than CITIC Securities, also equity-based incentives, a net asset valued, one has to market price as a reference, the difference is great self-evident. There is no doubt that it is imperative specifications.
Some people say that, to equity-based incentives in exchange for the share reform of listed companies executives passion is no different from "commercial bribery", the water skin is that, identification of "commercial bribery" in the main it is not easy, who is the payer, who is the bribe-takers, who can speak clearly? Therefore, if it is "commercial bribery," as it is more accurate embezzlement, executives have been invited to shareholders, and now took the opportunity to hold shares of major shareholders to send yourself a red envelope, not to eat while helping things then what is it?
