What Is The Impact Of Regulatory Rumors On The Capital Operation Of Garment Enterprises?

In a capital market full of bubbles and speculation, "bad money drives out good money".

The capital operation of clothing enterprises should take industry as the root, the main business as the basis, and the longer term "good currency".

Rumors of capital market regulation

In May 11th, it was reported that the SFC has halted the cross-border growth of listed companies, involving four industries, including Internet finance, games, film and television, and VR.

For example, cement enterprises are not allowed to invest in the four industries through fixed purchase or raise funds.

At the same time, mergers and acquisitions and refinancing of the four industries have been halted.

The SFC encourages listed companies to develop industries. For example, cement companies can increase cross-border industries to do photovoltaic industry, but the increase in cross-border industries will be banned.

As news came out, the A share market was in a state of agitation.

Virtual reality, hand travel, film and television animation and shell resources concept stocks and other sectors declined significantly during the news spread.

In May 13th, the SFC formally refuted rumors.

A spokesman for the securities and Futures Commission, Deng Ge, made a public response to the recent market rumors about the CSRC's halting "cross-border growth".

He said that the SFC actively supported eligible listed companies to carry out refinancing and merger and reorganization. At present, the relevant provisions and policies have not changed. If there is any amendment and adjustment, it will be released to the public through formal channels in the future.

The reform of China's capital market has strong policy nature, which is regarded as a "Chinese characteristic".

Although the securities and Futures Commission has now denied rumors of strict control over cross-border growth, it has reflected the changes in the regulation of capital market.

This change of thinking can be linked up by a series of capital events and hearsay in the near future.

Strategic emerging board ran aground.

The strategic emerging board of the Shanghai Stock Exchange, which has been brewing for nearly four years, is reported to be "Shelved" in March 15th.

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According to the SFC's opinion, the words "setting up strategic emerging industries board" should be deleted according to the plan.

In the subsequent announcement of the 13th Five-Year plan, there were indeed related words, indicating that the strategic emerging board that had been announced before was hovering.

Subsequently, the SFC responded that accelerating the cultivation and development of strategic emerging industries has always been the national established strategic policy.

The SFC has always attached importance to supporting the development of strategic emerging industries. With the development of multi-level capital market, the support of capital market for strategic emerging industries will certainly continue to increase.

The outline of the 13th Five-Year plan is a major event to determine the general trend of development in the next 5 years, define the general direction and make sure it is clear.

The specific problems of establishing strategic emerging industry boards should be further studied and demonstrated.

There is no need to outline the specific work that is still under study.

During the restriction, stocks were returned to hearsay.

In May 6th, the securities and Futures Commission issued a rumor that "the securities and Futures Commission has suspended the stock return to A shares". It should be highly concerned about the obvious spread of domestic and foreign markets and the speculation of shell resources.

Some analysts believe that this indicates that the SFC has admitted that it is considering how to limit the return of stocks.

Another Bloomberg News reported on May 10th that the SFC would consider restricting the backdoor measures in the stock market, taking into consideration the measures including the valuation of China's stock return and a certain price earnings ratio. Besides, it also considered limiting the number of pactions to be taken back in the stock market every year.

Rumors of improving the delisting mechanism.

In May 12th, according to Xinhua news agency, regulators are improving the delisting mechanism to protect investors.

Bo Yuan was delisted because of breaking the rules of information disclosure. Many companies failed to meet the profit requirement before they withdrew from the market.

Some companies continue to stay in the exchanges through mergers and acquisitions in the form of "shell companies".

Strictly controlling cross-border growth, limiting the return of stocks and improving the delisting mechanism, these rumors, coupled with the fact that the strategic emerging board has been stranded and registered system has slowed down this year, reflects the fact that regulators are trying to maintain stability in the capital market, keeping the market running on the track of rationality and protecting investors' rights and interests.

At the same time, we should avoid excessive speculation in the market and become a tool to encircling money. The listed companies should be hyped up under the banner of mergers and acquisitions, blowing up bubbles and reducing shareholders' cash holdings.

We must strictly control the speculation of shell resources, prevent the starting price of shell resources from sitting, and stir fry the concept, causing bad money in the whole market to drive out good money.

Regulatory rumors are frequent.

What is the impact of capital operation?

The SFC's strict control over cross-border growth has caused a stir in the A share market, and there are also some clothing listed companies involved in capital operation.

According to a message from flush flush, the company announced in the morning of May 12th that the company was unclear whether the SFC halted investment and mergers and acquisitions such as Internet finance.

The company adheres to the development strategy of garment as the main industry and Internet finance as the sideline industry.

At the same time, the company stated that the company adheres to the development strategy of garment as the main industry and Internet finance as a sideline. Investment will insist on small jog and prudent investment.

In 2015, the news bird announced the new strategy of "industry + investment", and set up a subsidiary company to promote mergers and acquisitions.

In March, invest in Renren stage; in April, invest in Yongjia Hengsheng village bank Limited by Share Ltd; in May, the news birds also invested in the establishment of small fish gold clothing, operating Wenzhou loan platform and pocket financial platform, the company said to build the Internet financial ecosystem.

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In addition to reporting birds, there are no shortage of apparel listed companies in the four industries of Internet finance, games, film and television, and VR.

For example, in June 2015, wells shares announced an investment of 3 million yuan to set up an Internet Financial Services Company, Hua Si Yi. In September 2015, Meng Jie home textile announced the establishment of the financial assets supply chain platform, "dream gold place". Haining Leather City announced in March 2015 that the Internet financial platform "leather city finance".

Kaiser bought a number of hand tours and IP operators in 2015. In March 2016, it announced a gradual withdrawal from the garment industry, joining the online game industry and making a thorough pition.

Mei Sheng culture, a cartoon costume maker, has landed in the capital market with animated concept and cultural stocks. In the capital operation, it further emphasized its cultural and creative positioning. It proposed to build the IP cultural ecosystem. In November 2015, it announced that it planned to buy 930 million yuan to buy the real interest network of the hand travel enterprises. In December, it announced that it planned to invest 60 million yuan in the micro media interaction of the new media operators.

Pathfinder said in November 2015 that its subsidiary owns a 10% stake in the public view field. The vision of the crowd mainly covers two aspects: AI (augmented reality) and VI (virtual reality).

Mei Sheng culture also announced in November 2015 that it would invest 20 million yuan to invest in the two dimension venture company to create magic technology. The capital increase of the magic technology will mainly be used in the development of AR and VR.

What is the impact of the frequent rumors of capital market on capital operation of clothing enterprises? What's more interesting is the SFC's response to "rumor".

The SFC responded that active support for eligible listed companies to carry out refinancing and mergers and acquisitions, there are no changes in the relevant provisions, policies, in the future, if any changes will be announced to the public through formal channels.

The meaning of the SFC can be interpreted as that there is no change in the current policy, but there may be changes and adjustments in the future. Moreover, the SFC has no positive response from beginning to end, strictly controlling the topic of "virtual" industries such as Internet finance, games, film and television, VR and so on.

No matter what, after last year and early this year, the capital market of two levels fluctuated greatly, I believe that regulators will be more prudent in launching the policy and avoid the "one size fits all" policy.

As a traditional industry, the garment industry is in the stage of pformation and upgrading. The main garment industry can not speak of prosperity. At present, the investment of garment enterprises in emerging industries and virtual industries is in the layout stage in general. Specific projects should be analyzed concretely. If it is around the main chain of apparel industry itself, it should be the right way to take advantage of new industries to enhance and upgrade.

If we just go to capital operation and join in the cash game of high cash, we will inevitably encounter the "magic spell" of regulatory policy.

Observation: making good money in capital market

In the clothing industry 2015 year-end observation article,

Has entered the era of integration of industry and finance, promoting the integration and pformation of garment industry, and forcing the restructuring and upgrading of garment industry will become a major trend in the apparel industry.

At the beginning of 2016, in the early 2016, the "big capacity expansion of the capital market: the strategic period of industrial and capital integration" was further emphasized. At the beginning of 2016, with the gradual advance of registration system, the acceleration of multi-level capital market construction, the increase of direct financing proportion, and the rapid expansion of capital market scale and the deepening of capital market reform, garment enterprises are facing the strategic stage of promoting the integration of industry and capital.

While emphasizing the use of capital market, Hua Shang observation also suggests bubbles and risks in capital market.

In the new spirit of "industry as king": the spirit of enterprise in the era of clothing industry integration, it is mentioned in the article that when capital markets flourish, bubbles are often accompanied by bubbles.

Japan also experienced a wave of asset bubbles in the 80s of last century, and even bought the US at the peak.

But the process of supporting Japan's capital in the bubble will not fall into the abyss. It is Japan's strong manufacturing base, and is a small number of thousands of small and medium-sized enterprises in Japan that are steadfastly engaged in industry and upgrading the level of manufacturing technology.

It is emphasized that the pformation and upgrading of garment enterprises must be based on industry.

At the same time, in the article "creating capital value, observing the dynamics of clothing industry capital", it is mentioned that there will be more participants and more capital entering the market. Clothing enterprises will also find that the direction of diversification is more and more concepts and patterns can be chased and more stories can be told.

The capital operation of clothing enterprises is often the same as the whole capital market, such as the pursuit of new concepts and new models, and new things often involve greater risks.

Clothing enterprises should combine capital with their own business models and development strategies, so that capital can better conform to the logic of industrial development and create firm value in a down-to-earth way.

Behind the regulatory rumors, such as strictly controlling cross-border growth, restraining speculation at high levels, limiting the return of stocks and improving the delisting mechanism, also confirm the above ideas: while promoting capital market reform, we should guard against market bubbles and risks.

In a market full of bubbles and speculation, bad money drives out good money, which is a necessary stage for market reform.

With the advance of reform, good money will find its place, and bad money will disappear without any trace, and the value will eventually return to its place.

We look forward to this day.