Category: Money tips Release Date: 2006-09-06
Choose to issue a larger number of large cap stocks purchase. Such as the Datong-Qinhuangdao railway, Air China. Although the Air China IPO issue price have fallen below expectations, but the break from the past issued shares of view, stock prices rose in both afternoon, so break is only temporary. Purchase large-cap stocks in the success rate will be relatively high in the ballot can be certain degree of protection.
The stock market investors know, in the secondary market playing the stock market risk, in a market "playing new shares" risky. But in a market, people are investing in China CAMC and other stocks, earning a bowl full of pots of the day over, there are Air China, such as buying shares, listed on the hold-up. Then the "fight" this new breed, how to select shares that do?
Understand the mechanism for issuing new shares
As an investor to participate in the subscription of new shares should first understand the mechanism for issuing new shares.
June 5, 2006, CAMC board market in Shenzhen small and medium public offering of new shares issued in the stock market opened a prelude. As of September 15, there have been 18 new shares landing small board market in Shenzhen, Shanghai stock market has also ushered in the five new shares listed, including the Bank of China, Air China and other super-large capitalization stocks. In the split share structure reform, one years after the IPO market is heating up again, to the robust investor has brought new investment opportunities.
New shares of the distribution system in China has undergone many changes, from the beginning of the cash subscription to 2004, placing the market value (based on the equity market value of the proportion of placements), and then to resume this year, the cash subscription, A-share market, though circuitous road to the issuance ups and downs, but also in progress.
Since 2004, the initial public offering of Securities Regulatory Commission in order to achieve the stock issuance of market-oriented pricing mechanism. Inquiry launched the original intention of the management system is good, is conducive to the issue price of new shares priced at more fair and just. However, after the concrete manifestation of the market's ability to achieve management's intentions also depends on the art of management's control. In the inquiry system for the use of less than two years time, or the market has been questioned. Main performance: first, the issue price of the drive up. Air China's distribution sector inquiry into the old system, under the mechanism of the bad side of the full exposure. In the course of the preliminary inquiry, quote at 2.8 yuan to the institutions of up to 57, while placing in the final offline Shique winding paths offer at 2.8 yuan leaving only 27. 50% of institutions have bid up the price of the suspect. Secondly, online and offline purchase requisitions time lag. Of this seemingly insignificant time difference, but contrary to the fair and just principles. It is precisely because of the time interval, giving the institution the opportunity to purchase two.
There are four aspects of the rules to adjust
It is evident from the old inquiry to the market mechanism has caused a lot of adverse effects, so urgently needed change. "Securities issuance and underwriting management approach," September 12 until September 15 open to the public for comments. New approach for large enterprises inside and outside will also be issued listing the actual needs of the IPO Inquiry's current procedures for issuing the stock placement, pricing, and links to further refinement in order to improve distribution efficiency. Inquiry system for the adjustment and supplement the four main aspects:
First, small plates listed on the Shenzhen Stock Exchange provides companies, whose prices are determined by the preliminary inquiry. This arrangement would allow SMEs to reduce the four days of the issuance process.
Second, is to provide offline and online purchase purchase simultaneously, this arrangement with the Hong Kong public offering market in the same process will enable the issuance process and two working days shorter than the current procedure.
Inquiry is to require all three objects can be independently choose whether to participate in the initial inquiry, lead underwriter shall not refuse to attend a preliminary inquiry inquiry object; only participate in the initial inquiry of the inquiry under the net purchase an object in order to participate. At the same time, in order to enhance the representativeness of the pricing, methods also stipulates that the initial inquiry stage in the inquiry objects offer less than 20, or the issuance of more than 400 million shares to participate in the inquiry objects offer less than 50, the issuer shall not be pricing and distribution should be discontinued.
Fourth, to achieve a smooth release large-cap stocks listed on the scale of the provisions of IPO shares in more than 400 million may be placing shares to strategic investors, can be used "over-allotment option (green shoe)" mechanism. "Over-allotment option" actually is an international common practice. The so-called "green shoe mechanism", that is, issuing new shares prior to the signing of lead underwriters and issuers the means to distribute over-allotment shares. If the market subscription enthusiastically shares above the offering price after the listing, then the underwriter may require the issuance of the company will soon be placing additional shares to the subscribers; if below the issue price, then the lead underwriters using IPO investors to subscribe for additional shares of the funds from the secondary market to buy shares, and then to issue the original subscription price of sold to investors, equivalent to the number of the same issue.
Security earnings five points of new shares
Inquiry system with changes in IPO, investors purchase shares in the choice when you need to seize the opportunity the following areas:
First, from time to grasp and improve capital utilization. Under the present system, on-line subscription of new shares subscription to the publication of the results from the need for five trading days, during which subscription funds will be frozen, so dense in the subscription of new shares, when considered a good time to improve efficiency of fund utilization is the key. If you have multiple branch issuance of new shares as much as possible to avoid pre-purchase a few pieces of new shares, the more into the back of the higher success rate.
Second, the concentration of superior force, purchase one. In the new shares issued during the intensive, decentralized funds than the probability of successful purchase of a centralized subscription and passed much lower.
Third, choose a good industry fundamentals purchase individual stocks. Usually based on industry status, market share growth for the company expected to raise funds to invest in and so to judge. Note that the content of these needs, investors can get from the prospectus. Issued listed Poly Real Estate, Jiangshan chemical, in the secondary market to perform well. Although these leading stocks will be more money congregation are optimistic about the success rate is not high, but once in the ballot, earnings will be increased substantially.
Fourth, choose to issue a larger number of large cap stocks purchase. Such as the Datong-Qinhuangdao railway, Air China. Although the Air China IPO issue price have fallen below expectations, but the break from the past issued shares of view, stock prices rose in both afternoon, so break is only temporary. Purchase large-cap stocks in the success rate will be relatively high in the ballot can be certain degree of protection.
Fifth, the public not to rush to sell that day. Generally optimistic about the market of individual stocks, the first day of orientation if the market is low, the stocks change hands too large, you can consider a longer time to hold, such as Poly Real Estate, the listing of the 25 trading day period, stock prices have more than 40 % increase.
Overall, the new share subscription is a safe, profitable business model. With the development of securities markets, a number of the advanced experience of mature markets will also be introduced, such as the Hong Kong market, "one hand" system was introduced voice is high. The mechanism for issuing new stock is constantly improving and perfecting, the medium and small investors will have higher returns. (Send
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