In June, The First Case Of "Turning Board Market" Has Fallen Into The Ground Or Not Far Away

Turning board expectations once again ignited the enthusiasm of investors to participate in the select layer market transactions.

On July 27, 2021, the first batch of 32 new third board enterprises promoted to the selected level will be listed for one year. According to the current rules, the above-mentioned 32 enterprises will have the basic conditions for listing on the science and technology innovation board or gem. From the historical data, companies listed on the new third board can often get a very high premium when they are listed on the A-share market. Therefore, the stocks with the expectation of turning board become the object of competition among market investors, which also drives the whole selection layer out of a wave of beautiful "June market".

According to wind data, as of June 25, 34 of the 54 selected stocks rose by more than 10% in the same month. During this period, the stock prices of several newly listed "secondary new shares" continued to rise. From the perspective of market transactions, since the beginning of 2021, a total of 22.693 billion yuan has been traded in the selected layer, accounting for nearly 40% of the total turnover of the new third board. In June, the transaction volume of the whole market of the new Third Board reached 9.696 billion yuan, of which the selected layer accounted for more than half, reaching 5.149 billion yuan.

"This year will still be the year of reform for the new third board." Recently, Sui Qiang, general manager of the national small and medium-sized enterprise stock transfer system Co., Ltd., said at the exchange forum of the local financial bureau that he would refine and refine the selection layer, including refining the operation arrangement of the transfer board listing, ensuring the smooth and convenient transformation of enterprises, strengthening the role of connecting the preceding and the following, and enriching the listing path of enterprises.

"June market" broke out in selected layer

In June, the stocks of the selected layer strengthened in turn. First, the first batch of listed stocks led the rise, and then the newly listed stocks also attracted a lot of funds. Zhixin Electronics (837212. NQ) and Bingyang Technology (836675. NQ) have recently increased by more than 10% in a single day.

From the data of June alone, there are 34 selected stocks with an accumulative increase of more than 10%, accounting for more than 60% of the total. Among them, as of June 25, Lude medical (832278. NQ) increased by 58.9% in the 18 trading days of that month, and Fujita (835640. NQ) also increased by 47.1% in the same period. In addition, Yongshun bio (839729. NQ), Derui lithium battery (833523. NQ), Bingyang Technology (836675. NQ) and beiteri (835185. NQ) also increased by more than 30%. And from a longer period of time, Fujita, Bingyang technology, Lude medical three stocks accumulated growth of more than 130%.

"The hot trading of selected layer stocks is naturally affected by the expectation of board transfer, which can be reflected in the rise of the first batch of selected layer stocks. However, the subsequent pursuit of the so-called "sub new shares" should be more caused by the influx of downstream capital due to market switching sentiment. " Ze Hao capital partner Cao Gang thinks.

According to the current regulations on listing on the stock exchange transfer board, companies applying for listing on the science and technology innovation board and the growth enterprise market should be listed continuously for more than one year at the selected level. On July 27, 2020, the first batch of 32 enterprises will enter the selection level through public offering. That is to say, as soon as the end of next month, some selected companies will disclose their willingness to go public, which will lead to the expectation that the stock prices of relevant stocks will be raised to a certain extent.

As for the relatively hot market of the selected layer in the near future, Zhou Yunnan, founder of Beijing Nanshan investment, pointed out that the market expected that the operation guide for the listing on the transfer board would be issued soon, or there was a situation that the company would rush to raise money in advance for the dividend of Bo Zhuan board listing. In addition, there is the possibility that large funds will rush into the market one year before the listing of the first selection layer, which will benefit the policy of Bo selection layer. In addition, A-share hot money suddenly into the trial is also a potential factor to push up the stock price.

"For investors, we should not only invest in hot money, but also guard against the risks brought about by the withdrawal of hot money. On the whole, the valuations of the selected stocks are still very low. Hot money is seeking investment opportunities brought by sentiment after the release of the news of board transfer, but they may not really have the patience to get the day of listing on the board. " There are senior investors in the new third board in Beijing.

According to the statistical data of Anxin securities in early June, after excluding the top 10 enterprises, the average return rate of the first day of listing from the new third board to the science and technology innovation board, the main board, the growth enterprise market and the small and medium-sized board (which has been merged into the main board of Shenzhen stock market) reached 759%, 284%, 583% and 450% respectively. Cao Gang believes that even if the stock price of the selected enterprises generally rises after public offering, and does not issue new shares when transferring to the board, the potential investment return is still very considerable.

Public funds may miss the opportunity of allocation

However, judging from the position of funds at the end of the first quarter, some new third board products of public funds are likely to miss the "June market" of this round of selection layer.

From June 12 last year to the eve of the establishment of the selected layer, the first batch of six new third board products of public funds were established. As of June 25, the return rates of the three funds which have been established for one year are all positive. Among them, huitianfu's Innovative Growth Fund and Fuguo's active growth fund's latest yield has exceeded 48%.

However, judging from the fund's position at the end of the first quarter, wanjiaxin power, one of the six products, has cleared its positions in the first quarter of the year. According to the data at the end of 2020, wanjiaxin power only held more than 60000 shares of Bertrand at that time. According to the announcement, wanjiaxin power plans to invest 15% of the raised funds to the selected layer. At the initial stage of the launch of the selected layer, the fund also actively participated in the relevant stock innovation. The above-mentioned beiteri, Lude medical and Fujida are all within the scope of wanjiaxin power's innovation.

I don't know whether it is related to the strategy of abandoning the allocation of selected stocks. At present, wanjiaxin's dynamic yield ranks the last among the six public offering new third board products. Since its establishment, the yield has just reached 11%.

In addition to wanjiaxin power, Huaxia growth select and southern innovation select also reduced their positions in selected stocks in the first quarter. For example, Huaxia growth select has over 70% reduction ratio of holding Airong software, beiteri and Yongshun biology.

"The first batch of new third board public offering funds are actually aimed at new returns, and they are generally willing to hold selected stocks for a long time." Cao Gang thinks. In the annual report, some new third board products of public offering also expressed concerns about the problems such as insufficient liquidity, high volatility, and information disclosure quality of selected layer listed enterprises.

However, huitianfu's innovative growth increased its holdings of some selected stocks in the first quarter. It said that the selected companies holding positions are mainly enterprises in science and technology innovation industry, and they are the leaders in their respective subdivisions. With the growth of the income and profits of these companies, some of them will meet the conditions for listing on the transfer board, waiting for the liquidity and valuation improvement after the listing.

Securities companies and private placement compete for research

In fact, behind the hot market of this selection layer, there are also institutions competing for the help of research.

Institutional research has always been a routine operation in the capital market, but the relevant situation is rarely seen in the new third board market. From the information disclosed by the companies listed on the new third board in the past, only two listed companies have been investigated by three batches of market investment institutions for many years. But after the birth of the selected layer, this situation began to change.

On June 24, Longzhu Technology (831445. NQ), a selective listed company, announced that it had received research from five institutions including Fangyuan asset, industrial securities, Jianghai securities, Guohai Securities and Western securities. In fact, just in March this year, Longzhu technology has just accepted the survey of four securities companies.

Including Longzhu technology, eight selected listed companies have disclosed 10 institutional research announcements, and five of them were published in June alone.

"It is not known whether the market of" beautiful June "of the selected layer is closely related to intensive institutional research, but the positive correlation between the two is certain." Zhou Yunnan said that intensive institutional research has shown that the selected layer plate has a good investment attraction, and that investment institutions are gradually paying attention to the investment opportunities of the selected layer.

Zhou Yunnan said that according to the published research announcement, the main research institutions are securities companies, which are basically the market making departments of securities companies. This is related to market makers' long-term tracking of the new third board, familiarity with listed enterprises, and direct investment authority. It may also be preparing for future mixed trading. In addition, some private equity funds and venture capital institutions participated in the survey. These institutions have advanced strategies and flexible investment. Institutions have entered the market for research, adding a lot of popularity to the market.

The "transfer board" has become the focus of institutional research. For example, Zhixin electronics and Lude medical were asked about the transfer plan, and the willingness of Liancheng CNC to transfer board was continuously inquired by two groups of institutional investors.

"727" node to open the application for board transfer is too early

With the stock price of the selected stocks going up, the market value problem which restricted the company's listing on the stock exchange board has been solved to a certain extent.

According to the current listing method, the market value and financial indicators of the selected layer listed enterprises should meet one of the "five sets of standards" of the science and technology innovation board, that is, the minimum total market value of 1 billion yuan is required. The estimated market value in the relevant market value indicators of the company will also be subject to the lower of the arithmetic mean value of the closing market value of the 20 trading days, 60 trading days and 120 trading days before the date of submitting the listing application to the exchange.

Zhu Haibin, chief analyst of the new third board of Anxin securities, recently estimated that after the arithmetic average, about 31 selected layer listed companies met the minimum market value requirement of more than 1 billion yuan, and the market value of Bertrand, Liancheng CNC, Yingtai biology and Changhong energy exceeded the 5 billion mark.

In addition, listed companies need to have a minimum trading volume of 10 million shares 60 trading days before reporting. Under the background of hot market trading, Anxin securities estimates that at present, there are about 28 companies with 60 trading days' trading volume meeting the above conditions.

However, Zhu Haibin also pointed out that companies with high turnover expectations should not only consider liquidity and market value, but also consider the attributes of scientific innovation and growth ability. Taking the attribute of science and technology innovation as an example, at present, the top patents are Bertrand, Yingtai biology, Hanbo hi tech, Chuangyuan instruments, Longzhu technology, etc.

"As a new thing in China's capital market, those who eat crabs first have always been able to grab the policy dividend. Therefore, the selected enterprises that meet the conditions for listing on the board may be eager to try, but the difficulty in the examination of Shanghai and Shenzhen stock exchanges is certainly no less than the enthusiasm of enterprises to apply." Zhou Yunnan guessed that the year to be able to successfully transfer the board of the selected layer enterprises will not exceed 5.

The industry has also given a high degree of attention to when the first transfer board case will occur.

GUI Haoming, chief analyst of Hongyuan securities, predicts that the company will declare in August, and there may be successful cases of selective layer to board transfer in October. He pointed out that at present, the selected companies have proposed to the Shanghai and Shenzhen Stock Exchange to be listed on the science and technology innovation board or the growth enterprise market. They do not carry out IPO, but just audit“ Since the company has already gone through strict audit before entering the selective layer, it should be more reliable to complete the preparation work of transferring board in about two months. "

Previously, the Shanghai and Shenzhen stock exchanges all said that the examination time limit for listing on the stock exchange was shortened from three months for initial public offering to two months, and the validity period of the decision was shortened to six months. In terms of audit content, Shanghai and Shenzhen stock exchanges focus on whether the listed companies meet the listing conditions and whether the information disclosure meets the requirements. The reply time of the companies and intermediaries to be transferred to the board is 3 months. The implementation of on-site supervision is not included in the review time limit of the exchange and the reply time of the issuers and intermediaries.

"At present, the operation guidelines for rotating boards have not been issued yet, but they will be released before" 727 ", so there will be no practical obstacles to the operation. At present, the problem is that even if the board is transferred, it needs to abide by the financial data rule of "three-year period". That is to say, only after the half year report is released, will there be any actual reporting cases of board transfer‘ 727 'this node may be more about the enterprise disclosing the plan of transferring the board, rather than realizing it. " Some practitioners of the new third board of small and medium-sized securities companies speculate that it may take until the third quarter to see the cases of selected enterprises applying for transfer to the board, and it is expected that there will be real cases of listing on the board within the year.

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