Category: Money Tips Date: 2007-05-29
Source: Jiangsu Tianding Author: Qin Hong
Recently the media reported that, with the A-share market share reform is becoming the great cause of every success increasingly marginalized B-share market road must be taken gradually become the focus of all market participants, from the recently held in Shanghai "post-split share structure reform period of pure B-share companies to explore a way out "seminar can also be seen this. It seems, B shares of the investment opportunities are in the pipeline.
B shares of the way out?
From the media reports it can be inferred, B shares, as a relatively independent existence of the market is no longer necessary, B-share market financing, refinancing was almost lost, has been seriously marginalized in the short term is difficult to change from large organizations favor pattern.
As the B-share market as a relatively independent market is there for less and less adequate, industry sources have speculated that the future of B-share market is not a way to scale-up financing, refinancing functions in reshaping the B-share market, but rather to remove B-share market will be B-share market listed companies in the institutional arrangements through the A shares or converted into H shares, and thus completely solve the B-share market this historical legacy.
Market expectations, B stock solution to the problem, the time might not be too long because the A-share market-tradable share reform asymptotic're done, A-share market of the new from the old has started, in this case, as a historical legacy issue B-share market is expected to put on the agenda of the relevant administrative departments. Industry is expected, in the end of 2006, first half of 2007, B-share market will reveal the whereabouts of potential mystery.
Routing
Then STAQ, NET system trading market after the abolition of the relevant departments of the companies listing in order to be a way out, in part to A-share market listed companies, G the South China Sea, G-ning in the business and other firms are coming true; are also part of the transfer the transfer agent for shares of the market (commonly known as three board) deal to build the north, nature, etc. for the resulting. Where G the South China Sea, G-ning in the business and other firms to the original investors are substantial return on investment.
Therefore, the industry is expected to address the issue of B-share market will bring about a corresponding investment opportunities, and different path selection, the birth of different investment opportunities. A growing number of industry believes that the issuance of A shares B shares buy-back is a good choice, although this was smaller than B shares with A shares directly to the merger is expected that program, the available opportunities to significantly reduce speculation, but because of the current A share market price is much higher than B shares, therefore, once the market came to solve the information B shares, then, B shares will generate rising market, not even rule out the possibility of more than two limit-and thus bring about a great set of profit opportunities.
Concerned about the two types of stocks
Of course, in practice, also need to select individual stocks value investing ideas and not be able to look confined to A shares and B shares on the difference. Solution because B shares may not be a simple merger, but the repurchase B shares, which may limit the price difference arising from arbitrage opportunities, therefore, investors need to be focusing its attention to the performance excellent, but because B-share market restrictions on the mobility of low stocks position.
I suggest that investors focus on two types of stocks, one extremely good performance of the B shares with A shares, including Lu Jia B, Jinqiao B, Changyu B, Chenming B, Lutai B, type B shares in the current valuation on the low side, if we can buy back, it will enhance the intrinsic valuation of A shares. Therefore, these B shares, A shares can be tracked.
2 is a new generation of blue-chip growth stocks B, namely, the recent positive changes in the fundamentals of individual stocks, such as the deep base of B, are already signs of Jiancang funds, because the logistics business has become the company's new profit growth point, and its shares of Red Wan-Sheng Wang Bao's somewhat similar to the G sea engineering, offshore oil exploration is expected to enjoy the prosperity brought about by high returns, it is worth tracking. Lead B as well.
