Under The Boom Of Debt To Equity Swap, A Shares Still Have Room For Growth.

The flow of capital into the stock market is in line with the policy level expectations.

Therefore, from the perspective of asset allocation of large categories, stocks are of value in a certain period.

Among them, the concept stocks such as debt to equity swap and equity pfer are opportunities to consider.

For A shares, it is undoubtedly an important day.

Why do we say so? Because on this day, the State Council issued a document that looked very cold: "actively and steadily reducing the number of enterprises."

In addition, there is a guidance on the pfer of creditor's rights to marketable banks.

This marks the "recluse" of 17 years of debt to equity swap, and A shares must have a "bloody storm".

This is not, the next day after the release of the document, that is, in October 11th, the stocks of debt to equity swaps rose sharply, with a net inflow of 1 billion 19 million yuan of funds, ranking the top of the A share concept plate.

The three party involved in debt to equity swap, that is, the target enterprise, the bank and the third party Asset Management Co, will get a share from it. It is a win-win situation.

First of all, look at the third party Asset Management Co.

At present, there are four major Asset Management Co in China -- XinDa, Orient, the Great Wall, Huarong, but unfortunately, they are not A share listed companies, and can not be included in the investment dishes of their friends.

However, dishes friends should not be too sad. According to public information, there are several listed companies in A shares directly or indirectly related to financial asset management business.

For example, Zhejiang Orient, Hyde shares, Shanxi investment A, etc., dishes friends can focus on (Note: the superscript only to illustrate the problem, not as a specific investment proposal.

Second, look at the target business.

So, what is the appearance of such a hot guy? How can we make investment operation under the influence of it? The dishes are quickly moved onto the stool, and the food guide is beginning to be analyzed and analyzed with everyone.

What is debt to equity swap? Let's make an analogy. Now there are three people: A, a dish company, opened a company, and opened a bank. The vegetable guide set up a financial asset company. B

Now, in order to manage the company, A, a dish friend, has made a loan from the bank opened by B. In order to reduce the pressure of interest payment and introduce strategic resources, Cai you A has decided to implement the debt to equity swap program for this loan.

The operation is like this. The Bank of the dish B sells the creditor's rights to the financial assets company which is guided by the food. Then, the vegetable guide pforms the debt into the equity interest of A company, and the vegetable guide becomes the shareholder of the company.

Cai you A no longer need to pay interest on loans, you can also get the strategic resources conducive to the development of the company from the vegetable guide. Of course, the stock of A is also diluted.

This is debt to equity swap.

Do you understand? Well, knowing what is debt to equity swap, the next step is how to invest.

We analyze the problem from two aspects: micro and macro.

It can be seen from the document that the implementation

Enterprises that are most likely to include the following categories:

One is the quality enterprises that encounter temporary difficulties; the two is the high quality and difficult enterprises that are in the low cycle of the industry, such as iron and steel, nonferrous metals and so on; the three is the growing financial enterprises with heavy financial burden, such as information technology, new materials, etc., and four are strategic enterprises related to national security, such as nuclear power and high-end equipment manufacturing.

Of course, these enterprises should still be dominated by state-owned listed companies.

Finally, look at the bank.

Although banks can not directly convert creditor's rights into their own shares, the rule design provides some gap for indirect operation.

It is mentioned in the document that the subordinate asset management organizations of a bank can act as a third party in the debt to equity swap business. Accordingly, the listed banks with subordinate asset management institutions can be regarded as important criteria for the concept of debt to equity swap.

On the operational level, the vegetable guide suggested that the relevant targets should be observed in the investment basket. As a medium term investment target, it is not urgent to catch up in the short term. After all, the greater the risk, the less sensible it is after a wave of adjustment.

At a macro level, we need to understand the intentions of decision making.

First of all, the core goal of this debt to equity swap is to help enterprises to leverage, while the large scale debt caused by high leverage will eventually be absorbed through A shares.

So, guide the capital to enter.

To improve the valuation center, we can leverage the enterprises to attract more players and create a good market environment for deleveraging.

From this point of view, there will still be room for policy increase in A shares in the future.

In addition, at present, the domestic RMB is too serious. In order to curb inflation, the decision-makers need to find a suitable reservoir.

From the contradiction between the stock market and the restriction of the purchase and loan, we can see that the property market does not rise or fall, and the sidewall arrangement is most consistent with the interests of all parties. Therefore, the wealth effect of the property market has been greatly weakened and can not afford the responsibility of the capital reservoir.

Under the premise that rural land circulation has not become a reservoir of funds, the stock market is still a good choice.

In the two aspects, are the friends who invest in stocks feel a little relieved?