Public Offering Can Be Dismantled By The New Three Board Policy Effect: The Stock Market Is Difficult To Increase, And Products Are Cautious And Short-Term Capital Inflows Or Limited.

At the beginning of the new year, the new three board market was immersed in the joy of policy landing, and the market was rising all the way. The market making index even recovered 1000 points in January 7th.

The hot performance of the market is closely related to a heavy policy in January 3rd. That is, the SFC has publicly solicited opinions on the public offering of securities investment funds to invest in the listing system of shares of the small and medium enterprises nationwide (Draft).

The release of the guidelines is a great stimulant for the new three board investors. However, careful study of the terms reveals that the symbolic significance of the policy is more practical than that of the new three board investors, and the possibility of the stock raising fund products entering the market is small.

Stock market difficult

There are 15 guidelines. The core contents are fourth and fifth, that is, the fund's investment in listed stocks. The fund should be stock fund, mixed fund and bond fund, and the fund property is limited to the investment selected layer stock.

But the market is more concerned about when the public fund products will enter the new three board market. As we all know, in the contract set up by public fund products, it is necessary to stipulate the direction of investment, but can invest in the stock raising fund of the selected level. Before the policy is promulgated, the contract does not specify that the listed stocks will be selected. Therefore, if the stock products want to enter the market, they must modify the contract.

The guidelines also mentioned that the fund has been approved or granted by the China Securities Regulatory Commission before the implementation of this guideline. The fund contract does not expressly stipulate that it can invest in selected stocks. After the appropriate procedures are implemented according to laws and regulations and fund contracts, it can invest in selected stocks.

In this regard, the securities and Futures Commission responsible for drafting the "guidelines" also pointed out that the stock of public funds to invest in selected stocks, may cause a significant change in the characteristics of risk and return. In order to protect the legitimate rights and interests of the holders, the guidelines require that the stock fund contracts do not expressly stipulate that they can invest in the selected stocks. After the appropriate procedures are implemented according to the laws and regulations and the fund contract, they can invest in selected stocks.

"Literally, the regulations and explanations here can be interpreted as that the SFC did not prohibit the future investment of the stock fund products in selected stocks, but the possibility of modifying the contracts by the stock fund was very low, and at the operational level, the possibility of the entry of the public stock fund products was locked." The middle level of a large public fund in Beijing told reporters.

In this regard, Shen Wan Hongyuan new three board research director Liu Jing also said that the public funds to increase the new three boards as investment scope, the operation process will face many difficulties. According to the ninth and fourteenth soliciting opinions, the stock raising fund must initiate the holder's meeting and modify the fund contract if it wants to invest in the new three boards. More than 50% of the holders of the fund are required to vote on the revision of the fund contract, and the 1/2 voters may pass through the fund, and may involve changes in the risk level of the fund. When the new third board selection layer is not yet mature, and the liquidity of the public fund is difficult to grasp, it is difficult for the stock raising fund to intervene.

He pointed out: "more than 50% holders must vote in the revision of investment scope. In the public offering products, the more dispersed the holders are, the harder to meet the requirements; secondly, the voters who are not more than 1/2 agree. Increasing the voting of a high risk level requires a lot of communication. If the holder is dispersed, it is not easy for 1/2 fund holders to vote in favor. In addition, it may involve the rise of the risk level of the products, so that the original sales objects such as banks and other consignment channels are no longer suitable, or even produce disputes. This requires communication and consultation between fund managers and affiliate channels. "

In the face of the issue of public funds, the regulatory authorities identified the shares listed on the science and technology board as the shares issued by the domestic authorities according to law. They belong to the "listed stocks" listed in the first seventy-second provisions of the fund law, which can be invested in A shares.

Now, the guidelines are still in the stage of soliciting opinions. Is there any room for change?

The industry believes that the selection layer is currently defined as "listed stocks" rather than "listed stocks", so it is very difficult to get the re amendment in the official documents. In fact, the public offering fund's entry to the market is more symbolic than the actual meaning, because the stock products can not be admitted quickly in the short term, so the contribution of the public fund to the overall capital inflow needs to be sober.

Incremental public caution

The stock market is facing difficulties in modifying the contract, but the incremental public fund products can avoid the corresponding problems when launching the establishment. Therefore, the new fund products that are directly related to the new three board market are issued after the publication of the guidelines. However, the entry of new fund products is also a long period of change, which is not a big increase in capital in the short term.

Liu Jing suggested that there are still some short-term obstacles to be resolved in the new fund intervention. "One is the competition between fund management companies and their subsidiaries," he said. Many fund management companies have delimited the function of investing in the new three boards, and the new three boards of the fund company's public offering products are not competing in the same industry. The two is the risk rating of fund products. Due to the general impression that the new three boards are liquidity risk, it is likely that the relevant departments should conduct further guidance on how to set the risk level.

In addition, according to the reporter's understanding, after several years of sluggish market, many public fund company's special account products crashed into the new three board market, which also caused a devastating blow to the research and development of the new three board products. Most of the public fund companies were originally responsible for the new three board investment. Most of them left their posts and transferred posts. Therefore, if some fund companies want to reopen the new three board market, they also need to solve the problem of investment and research, which is in line with the requirements for investment and research in the guidelines.

But in the long run, the guidelines still have a profound impact on the new three board market. With the passage of time and the continuous admission of public fund products, the structure of investors in the new three board market will undergo great changes.

Li Shiqiang, the investment manager of the Kowloon Thai fund, said that allowing the mainstream institutions such as public funds to invest in the new three board selected stocks is an important step in the new three board reform. If the public fund can become an incremental source of funds for the new three board market, the marginal improvement of the market liquidity should be obvious, especially the stock of the selected layer. With the effective placement of public funds, the top quality enterprises in the selected layer will get more attention, and play a positive role in activating market transactions and promoting the value discovery of quality enterprises.