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IPO break brokers are the most hurt! "Follow-up investment + underwriting" under pressure, investment bank IPO contracting, pricing, underwriting to meet the "high-voltage test"

IPO break brokers are the most hurt! "Follow-up investment + underwriting" under pressure, investment bank IPO contracting, pricing, underwriting to meet the "high-voltage test"
IPO break brokers are the most hurt! "Follow-up investment + underwriting" under pressure, investment bank IPO contracting, pricing, underwriting to meet the "high-voltage test"

Under the frequent breakout of new stocks, the securities companies that have made the industry's eyes red follow the investment income, or become a burden that drags down the performance.

According to wind statistics, there are 99 newly listed A-share stocks this year, and as of April 15, 57 stocks have fallen below the issue price, with a break rate of 57%. Among them, 23 stocks on the science and technology innovation board broke, which made the securities companies that followed the investment "seriously injured", and 10 follow-up securities companies such as Haitong Securities and Guotai Junan had a total floating loss of 209 million yuan.

At the same time, in addition to the stocks purchased with investment, under the break of new stocks, the proportion of investors abandoning purchases is rising, and securities companies also need to "tearfully" underwrite the shares abandoned by investors and bear double pressure.

On the evening of April 17, Naxin Micro, which is about to land on the Science and Technology Innovation Board, disclosed the results of the offering, and online investors gave up the subscription of 3,381,527 shares, accounting for 13.38% of the total number of shares abandoned in the offering, and the amount of abandonment reached 778 million yuan, all underwritten by the underwriter Everbright Securities. The scale of the abandonment amount has caused an uproar in the market.

Chen Mengjie, chief strategist of Guangdong Kai Securities, told the Chinese reporter of the securities company that in the current situation where new stock breaks are not uncommon, investors abandoning purchases and their own follow-up investment pressure will force securities companies to improve their professional ability and pricing ability of project screening, strengthen the quality control of IPO, and promote the subsequent issuance pricing to return to objectivity and rationality.

Sci-tech board follow-up investment is very "hurt"

Since the opening of the Sci-Tech Innovation Board, the follow-up investment system can be described as an institutional innovation of the board, which requires securities companies to use their own funds to follow up on sponsored listed projects through alternative subsidiaries.

Therefore, since the implementation of the follow-up investment system, the head securities companies with alternative subsidiaries have the advantage of being the first mover and have obtained considerable floating income through the follow-up investment in the science and technology innovation board project.

Wind data shows that since the opening of the Science and Technology Innovation Board, CITIC Securities has served more than 100 science and technology innovation board companies, and the number of joint service companies of CICC, CITIC Construction Investment, Haitong Securities, Guotai Junan and Huatai has exceeded 50.

However, with the normalization of new stock breaks this year, the follow-up investment business of securities companies no longer seems to be "fragrant", and the follow-up investment of real money and silver may have huge floating losses.

According to wind data statistics, as of the close of april 15, there were 57 new stocks that broke this year, mainly on the science and technology innovation board and the ChiNext board. Since the beginning of this year, there have been 31 newly listed stocks on the Science and Technology Innovation Board, and the number of broken stocks has reached 23.

Among the 31 new stocks on the Science and Technology Innovation Board, the follow-up securities companies are still dominated by haitong securities, CICC, Guotai Junan, CITIC Construction Investment and other leading securities companies. The data shows that among the 31 new listed companies on the science and technology innovation board, there are 23 companies with floating losses, of which 17 have floating losses of more than 10 million yuan, while only 8 have followed the floating profits.

IPO break brokers are the most hurt! "Follow-up investment + underwriting" under pressure, investment bank IPO contracting, pricing, underwriting to meet the "high-voltage test"

Haitong Securities is a "big investor" in the science and technology innovation board, and has invested in 8 science and technology innovation board companies, and the "injury" is the most serious. The two new stocks of the science and technology innovation board with the largest breakthrough range, Aojie Technology and Maiwei Biological, Haitong Securities have followed the investment, with a floating loss of 80.35 million yuan and 50.11 million yuan respectively, and the 8 science and technology innovation board companies co-invested by Haitong Securities have a total floating loss of 156 million yuan.

In addition, Guotai Junan invested in Tianyue Advanced, Puyuan Precision Electric and Zhongfu Shenying with a total floating loss of 59.93 million yuan; CICC Wealth Securities invested in 6 science and technology innovation board companies, and 5 broke down, with a total floating loss of 58.87 million yuan.

Although there is a general large-scale floating loss in follow-up investment, there are also brokers who bet on the treasure. For example, CITIC Construction Investment co-invested in 4 science and technology innovation board companies, with floating profits and floating loss companies accounting for half of them, especially JinkoSolar, an old player in the photovoltaic track with 200 million yuan, which floated 214 million yuan in one fell swoop.

It is worth mentioning that although the recent break in new stocks has been more violent, securities companies need to lock in for 2 years with investment in science and technology innovation board companies, and whether the final loss depends on the future market environment and whether the company's performance is as expected. "The offline issuance of the follow-up investment system itself is inclined to long-term investors, which can guide investors, issuers and lead underwriters to set reasonable prices, and can also guide the sci-tech innovation board to form a long-term value concept and optimize the investor structure." Chen Mengjie said.

Investors are under pressure to abandon underwriting

With the large-scale breakdown of new stocks this year, investors have also become a common phenomenon in the market, and the proportion of abandonment has shown a high trend. Under the balance underwriting system, investors abandoning the purchase also puts a lot of pressure on underwriters to "take over".

On April 12, Jingwei Hengrun, a new stock on the Science and Technology Innovation Board with an issue price of 121 yuan, was abandoned by investors for 395 million yuan in the issuance, with a abandonment ratio of up to 1/3. According to the established arrangement, all the shares abandoned by online investors are underwritten by the joint lead underwriters CITIC Securities and Huaxing Securities.

On the afternoon of April 17, Matrix Partners Hengrun issued an announcement that it would be officially listed for trading on April 19. According to the announcement, CITIC Securities underwritten 2.935 million shares this time, becoming the fifth largest shareholder of the company holding 2.45% of the shares. Based on the issue price, the market value of CITIC Securities' holdings reached 355 million yuan. In addition, the CITIC Securities subsidiary also spent 100 million yuan to invest in follow-up investment.

According to Jingwei Hengrun, in the first quarter of this year, after deducting non-recurring gains and losses, the company will lose 60 million to 80 million yuan.

"Sci-Tech innovation board companies and CHINext companies with high issue prices, high price-to-earnings ratios, and superimposed performance losses are basically the hardest hit areas abandoned by investors." An executive of a small and medium-sized securities company in charge of mergers and acquisitions told the Chinese reporter of the securities company that the breaking of new stocks is normalized, and in order to avoid loss-making investors, they choose to abandon the purchase.

In fact, CITIC Securities' participation in the sponsorship and follow-up investment of the science and technology innovation board company Jingwei Hengrun is only the epitome of the double pressure on securities companies under the tide of new stock breaks.

According to Wind data statistics, since the listing of new shares this year, the total balance underwriting of securities companies has reached 2.058 billion yuan, of which the top three companies are China Mobile, Aojie Technology and Tengyuan Cobalt, with underwriting amounts of 756 million yuan, 175 million yuan and 100 million yuan respectively.

At the same time, the top five underwriting ratios of newly listed companies are all science and technology innovation board companies, namely Haichuang Pharmaceutical, Puyuan Precision, Weijie Chuangxin, Aojie Technology and Shouyao Holdings, and the underwriting ratio of securities companies is 3.24%, 3.14%, 2.61%, 2.55% and 2.52% respectively.

Chen Mengjie believes that after the market enters the adjustment, investors are worried about the sustainability of the subsequent profit growth of these high-priced stocks and the prospects for the development of the industry, and it is not uncommon for new stocks to break, and the belief of "steady profit and no loss" is broken, "It is expected that under the upward trend of the abandonment rate, the investment banking income of securities companies will be under pressure in the short term, which is not conducive to securities companies to obtain capital returns, so as to form a virtuous circle of capital replenishment." ”

Observation: Brokerage pricing underwriting ushered in "high voltage test"

Reporter: Tan Chudan

The first day of the new stock listing is not a new thing, but the impact on the multiple businesses of securities companies cannot be underestimated, and many securities companies are obviously not fully prepared for this.

Recently, there have been more cases of investors "fighting new disputes", which have attracted much market attention. At present, the "one-click new" and "early freezing of new funds" in the mobile trading software APP of major securities companies are no longer popular functions. When the number of new stock breaks increases, the above-mentioned convenience means that were once regarded as brokers to provide new customers have now become "dispute points" - "one key to hit the new" may become "one key to lose money"; freezing funds in advance, so that investors believe that they have not been given sufficient trading freedom.

Whether the above functional design still meets the needs of current investors should be reflected. Behind this reflects whether securities companies have the concept of matching the registration system on the issues of "investor education" and "investor accompaniment". Taking "one-click new" as an example, this function has encouraged investors to "play new with a fool" and "open their eyes to fight new" for a long time in the past, and investors actually do not have a clear understanding of the relevant new stocks and risks, which is contrary to the concept of investor education under the registration system.

At present, the capital market has changed. The China Securities Regulatory Commission has made it clear that it should actively guide the cultivation of an investor team that is compatible with the market-wide registration system. Then, as an important participant in the capital market, securities companies should take the initiative to assume social responsibility, improve their understanding of the concept of the registration system, and have full cognitive preparation for the changes in the capital market ecology that may occur under the comprehensive registration system in the future.

Due to information asymmetry and the lack of support from the research system, investors, especially "small white" investors, lack understanding of the market. Securities companies should increase the supply of investment education products, assist retail investors to improve their risk identification ability and new stock investment knowledge, guide investors to actively read the information disclosure documents of new stocks, and enhance their value judgment and investment decision-making capabilities. More importantly, securities companies should have adequate risk warnings.

In terms of investment banks, securities companies should improve their underwriting capabilities. The pilot implementation of the registration system for A shares has been nearly three years now, and there has not been a single case of IPO issuance failure so far. Everyone understands the principle that "the reform of the registration system puts forward higher requirements for the pricing ability and sales ability of securities companies", but investment banks have not really implemented this.

Carefully investigating the reasons, in the current registered IPO market, whether individual investors or institutional investors, are still enthusiastic about fighting new stocks, although many new stocks are currently broken, but the phenomenon of oversubscription is still the norm. After the new regulations on the inquiry of new shares, it is more difficult for offline inquiry institutions to enter the quotation, and the quotation is floating in order to grab chips.

At present, some offline inquiry institutions have successively withdrawn from the new market, the amount of online abandonment is high, and the proportion of underwriters has increased significantly. In this context, the test of the pricing ability and underwriting ability of securities companies ushered in a "high-pressure test". This means that securities companies must not only "guarantee" but also "recommend", strengthen their research capabilities and pricing and sales capabilities, give play to the role of the investment report as an "anchor" in the pricing of the offering, and prudently write the investment report to reflect the true level of the listed company. From this point of view, the underwriting capacity of securities companies still has a lot of room for improvement.

The era of comprehensive registration system is coming, and in the new situation, securities companies cannot "wear new shoes and walk the old road", but should take the initiative to adapt to new changes and practice financial responsibility.

IPO break brokers are the most hurt! "Follow-up investment + underwriting" under pressure, investment bank IPO contracting, pricing, underwriting to meet the "high-voltage test"
IPO break brokers are the most hurt! "Follow-up investment + underwriting" under pressure, investment bank IPO contracting, pricing, underwriting to meet the "high-voltage test"

Editor-in-charge: Gui Yanmin

IPO break brokers are the most hurt! "Follow-up investment + underwriting" under pressure, investment bank IPO contracting, pricing, underwriting to meet the "high-voltage test"