Market Reform Of IPO Embarrassed

April 8th, China

Now, why do new stocks break even when the "three highs" of new shares are becoming more reasonable and rational?

How will the IPO marketization reform go on?

Breaking new shares will become normal

Since March this year, the market IPO has obviously accelerated, and the breakout pressure of the two tier market appears again, which seems to enter a new round of new share breaking cycle.

In April 7th, the gem four new listings, only Hai Lun zhe [21.98 -0.45% shares] increased by 8.71%, the 0.97% shares of the 0.97% shares of the company, the [29.95 3.10% shares of Han Yu pharmaceutical] and the new alliance [20.85 0.72% shares of high alliance] Qi Qi break.

Wind statistics show that as of April 7th, there were 94 new shares traded in two cities since 2011, of which 30 had broken down on the first day of the listing, accounting for 32%.

Up to April 7th, 42 of the 94 new shares were in a state of breakage, accounting for 45%.

Li Xunlei, chief macroeconomic economist of Guotai Junan, believes that the concentrated breakup of new shares, especially the concentrated breakage of IPO, is "very normal", mainly due to the high price of the gem and the overall decline in the growth enterprise market over the past few years. The return of gem stock prices is a trend, but this process is "tortuous".

Liu Jingde, deputy general manager of XinDa securities research and development center, believes that the issue price of the gem is still low, and the P / E ratio is still high, and the market is hard to accept.

He also believes that in the light of the current market structure, if there is no big change, the general breakage of new shares will continue.

On the "new stock valuation and pricing seminar", Zhang Yujun, general manager of Shanghai stock exchange, issued his own view on the breakup of new shares: reasonable new shares pricing is not correct after the IPO is launched. With the maturity of the first issue, the proportion of new shares breaking will rise further.

"Three high" will continue to decrease

The breakout of new shares will also affect the pricing and pricing of IPO, which will promote the success rate and lower the price earnings ratio.

Wind data show that in March, the average price earnings ratio of the 31 new shares was 54.55 times, which was 8.66% lower than that in February, of which the main board dropped by 14.84%, while the small and medium size board decreased by 6%.

In February, the average gem price earnings ratio fell sharply, and the gem continued to fall in March, with a decrease of nearly 5%.

The data of the Shenzhen stock exchange show that since June 2009, the stock of subscription funds in the primary market has been decreasing month by month.

Among them, in June 2009, the first tier market of small and medium sized boards was about 30 billion yuan under the net of subscription funds, with over 400 billion yuan online.

And in February this year, the purchase of funds under the net has dropped to 2 billion 263 million yuan, the net has been reduced to about 70 billion yuan, the decline is very significant.

Cai Huawei, [3.48 -1.70%] of Shenyang world, told reporters: "no matter what the environment is like, as long as new shares continue to break down, then the" three high "of new shares will have direct power to come down.

In the "seminar on valuation of new shares", Sun Yizheng, vice president of [19.31 0.78% shares of China Merchants Securities, said that with the deepening of market-oriented reforms, the "three high" problems in the next few years will be gradually reduced or even disappeared.

Cai Jinyong, President of Goldman Sachs high China Securities Limited, said that for the current "three high" problems in China's IPO, it is not conducive to the long-term development of China's capital market to rely too much on mechanical indices such as price earnings ratio.

"Therefore, in the future, the issue of" three high "of new shares will be significantly improved.

At that time, "three high" would no longer become a reason for breaking new shares.

Cai Huawei analysis thinks.

Xu Zengke, Ping An Securities [0.00 0.00%], told reporters: "the speed of issuance is also a very important reason for breaking new shares.

Market funds can not afford such intensive new issue, breaking new shares has become an inevitable trend.