He Wan Man Interpretation Of Common Stock To Preferred Stock

Following the September 13th Central Committee and the State Council's "guidance on deepening the reform of state-owned enterprises" (hereinafter referred to as the "guiding opinions"), in September 25th, the State Council issued the "opinions on the development of mixed ownership economy of state-owned enterprises" (hereinafter referred to as "mixed Reform Opinions").

However, the capital markets are not performing well.

In September 14th, the "guidance" was released the following day, the Shanghai index fell 85 points, or 2.67%, and the Shanghai stock index fell 50 points in September 25th, or 1.6%.

Of course, the one or two day index does not show anything, but in any case, the reform of state-owned enterprises is the highlight of the capital market and the most important driving force for reform.

The 2014 annual report shows that as of the end of the year, there were 1075 state-owned holding companies and 376 central enterprises.

In spite of the number of listed companies, the proportion of 1075 state-owned holding companies is only about 40%, but their total assets, net assets, main revenue and net profit account for 85.64%, 78.74%, 80.42% and 81.04% of all listed companies respectively. Among them, 376 of the total assets, net assets, main income and net profit of 376 holding companies account for 70.9%, 57%, 56.3% and 63.5% of all listed companies respectively.

In the two heavyweight documents of "guiding opinions" and "mixed Reform Opinions", the author's greatest concern is "allowing some state-owned capital to be converted into preferred stock and exploring the establishment of a special state management system in a few specific areas".

In the guiding opinion, this is mentioned in the seventh article, that is, the reform of the shareholding system of the company. To the "mixed reform opinion", there is a single article, that is, fourteenth: "explore and improve the preferred stock and the special management unit of the state". If implemented, it will be a major breakthrough for China's capital market.

Occupying 80% parts of China's capital market

If you do not move or move, it is of course great activity.

"Allowing some state-owned capital to be converted into preferred stock" is a "pformation" rather than an "additional issue".

So far, with bank stocks as the main concern, we have implemented the preferred stock issue of about 250000000000 yuan (including overseas issuance), plus the proposed plan and the SFC issued about about 250000000000 yuan, but this is incremental. Although the preferred stock is not common stock, it does not dilute earnings per share, but after all, the market needs real gold and silver to go down.

The two document is "

"That is, allowing the common shares held by some existing state-owned capital to be converted into preferred stock.

According to the author's rough statistics, the average holding ratio of the 1075 state-controlled listed companies is about 58%, and the average holding ratio of the central enterprises is about 65%, quite a number of companies.

Above 70%: for example, Baosteel 79.71%, Agricultural Bank 79.49%, Yangtze Power 73.33%, China Shenhua 73.01%, Sinopec 72.94%, ICBC 71%, Shougang shares 79.38%, Shandong steel 79.18%, SAIC 77.33%, and so on.

Such a large share of control is neither conducive to corporate governance, but also a waste of control. If it can avert 10% of the preferred stock, from 58% to 48%, which will be a great benefit to the A share, and it can fully meet the holding requirement of "two classification" to promote the mixed ownership reform of state-owned enterprises.

"To explore the establishment of a special administrative stock system in a few specific areas".

The so-called "special state management unit" is the golden share, the so-called "few specific areas", that is, "important state-owned media enterprises".

In November 2013, the decision of the Central Committee of the Communist Party of China on several major issues of deepening the reform in the third Plenary Session of the 18th CPC Central Committee put forward the need to explore the implementation of the special management unit system for important state-owned media enterprises.

Today, the two opinion reiterates that the national special management unit does mean that in the near future, China's stock market is about to open gold shares?