Public Offering To Prepare For Gem Registration System Reform: 6 Companies Declare "New Fund" Or Participate In Strategic Placement

In preparation for the gem registration system reform, the public fund has made new moves.

In May 7th, the SFC website showed that 6 fund companies, such as Boshi fund, Wells Fargo fund, Huaan fund, China Europe Fund, Dacheng Fund and Wanjia fund, reported two years of closed or regular opening of hybrid funds for gem, and the latest progress is receiving materials.

According to the disclosure, the 6 products reported by the 6 fund companies are Bo Shi gem, 2 years of regular opening of mixed securities investment funds, rich country's gem selection, 2 years' closed operation, flexible allocation of mixed securities investment funds, Huaan gem Theme 2 years closed operation mixed securities investment fund, China Europe gem 2 years closed operation mixed securities investment fund, Dacheng gem selection 2 In 2003, it closed operation of mixed securities investment funds and ten thousand gem, and 2 years of regular opening of mixed securities investment funds.

Among them, Wells Fargo fund, Huaan fund, China Europe Fund and Dacheng Fund four fund company's products all take two years closed operation mode, and the products of the two funds of the time fund and Wanjia fund are two year regular open-ended funds.

"These products are ready to participate in the registration system reform of gem, and several products are closed or regularly open to operate, and the rate can be part of the strategic placement." In May 8th, a large public offering fund told the business reporter in twenty-first Century.

New products or participation in strategic placement

In April 27th, the thirteenth meeting of the Central Committee for comprehensive deepening reform and deliberation adopted the implementation plan of the gem reform and the pilot registration system. The SFC and the Shenzhen Stock Exchange began soliciting opinions on the relevant rules and regulations.

As a result, the public fund, as an important participant in the market, has also opened up many preparations.

"The background of this product is the release of regulatory policies for the relevant policies, as well as the reform and support of the capital market." A securities business department public fund people interviewed said.

According to the twenty-first Century economic report reporter combing, currently has declared 6 products related fund companies, including Boshi fund, Dacheng Fund two companies registered in Shenzhen, and Wells Fargo fund, Huaan fund, China Europe Fund, Wanjia fund are Shanghai fund company.

"Bo Shi gem" two years regular open hybrid securities investment fund takes the gem related securities assets as the main investment direction. The fund fully participates in and grasps the investment opportunities of growth oriented entrepreneurial innovation listed companies brought by the gem registration system reform. It aims at serving the real economy and the direction of capital market reform, and striving to create more investment returns for investors. In May 8th, the Boshi fund told the business reporter in twenty-first Century.

Judging from the relevant situation of the first batch of declared products, 6 products are all closed or regular open hybrid funds, and the intention of targeting strategic placement is obvious.

"This is a series of matching funds for registration system reform of gem, and products are also designed for participation in the placement." An analysis of a public fund company in Southern China said.

"Public funds choose products that are closed for a long time, which is conducive to the operation of fund managers, and encourage investors to invest in medium and long-term investments from the institutional perspective. In addition, the gem closed fund is also a preparation for the registration system of gem, and it can participate in the strategic placement in the future, and it can also cope with greater fluctuations in the closed period. Ping An Securities Fund research team executive general manager Jia Zhi told the twenty-first Century economic news reporter.

"Gem provides an important channel for innovative enterprises to connect from pre market venture capital to capital market financing. On the one hand, along with the transformation of the economy to high quality development, new economy and new technology enterprises need more inclusive listing conditions and institutional environment. On the other hand, the financial system's support for private enterprises and small and medium-sized enterprises needs to be further strengthened. A public fund company in Southern China said.

In its view, the number of private enterprises in gem accounts for 84%, which is 30% higher than that of Shenzhen's main board and 47% of Shanghai's A shares. The introduction of registration system can further expand the enterprise boundaries of the gem, and facilitate the financing of science and technology enterprises and private enterprises through the capital market, so as to further leverage and reduce costs.

Therefore, for the public fund, it is also an important force to participate in the reform of gem and serve the real economy.

"With the curtain up of the registration system reform of gem, the implementation of the registration system and the gem will be the two core of the capital market. The Yangtze River Delta and the Pearl River Delta will become the two major links to promote the development of science and technology industry in China. Public funds, as an important part of China's capital market and professional institutional investors in the A share market, will become one of the important participants in the registration system reform of gem. " A public fund company product department said.

"For investors, the risk level of such products is purely participation or full participation. Investors can choose products that are suitable for their products after approval. In addition, medium and long-term investment funds can be concerned about such products, and those with high liquidity requirements must be cautious. Jia Zhi said.

Optimistic about investment opportunities

From the market trend, the gem index has risen by nearly 5% since April 28th, and the Shanghai Composite Index has risen by about 3% during the same period.

"Facing the challenge of the new crown pneumonia epidemic, the global industrial system, science and technology system and financial system may face reconstruction. The financial markets both at home and abroad have seen significant shocks, and various reform measures are an important means to cope with the challenges. China's financing structure has long been faced with a situation of less than 5% of equity financing. Especially in the current complex domestic and international environment, direct financing, especially equity financing, will become a strong support for economic transformation. An investment director of a public brokerage fund in Beijing said.

"From a larger perspective, every big market cycle in China's capital market is derived from a major capital market policy reform cycle. It can be said that every round of bull market is to a certain extent enjoying the dividends of reform. Historically, capital markets have responded positively to every reform. " The source said.

"We are very optimistic about the development opportunities of the growth enterprise market in the next one or two years. We can see that the survival of the fittest brought about by the system will enhance the valuation of blue chips. At the same time, the relaxation of the listed profit conditions will also help the fast growing enterprises, especially those with light assets, to get better support from the capital market." The aforementioned public fund companies said.

"As of the end of April 2020, there were 807 listed companies on GEM, with a total market value of 6 trillion and 790 billion. In the past 10 years, the gem has been integrated into the implementation of a series of national strategies, and has become a gathering place for entrepreneurial and innovative enterprises. It is one of the fastest growing markets for global service innovation. " An investment director of a large public fund in Southern China said.

In the current growth enterprise market, nearly 60% of the listed companies are strategic emerging industries, and new industries are outstanding. They are typical representatives of China's new economy. From the perspective of the industry distribution of gem, the top three industries of weight distribution are medicine, computers and electronics. They are all high-tech and new industries that are expanding their capacity. Compared with the industry distribution of CSI 300, CSI 500 and CSI 1000, gem has a higher distribution in high-tech and emerging technology industries, and the latter effect will become more significant. The source pointed out.

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