The First Anniversary Of The Implementation Of The New Regulations On Refinancing: The Scale Of Additional Issuance Has Increased By 40% Year On Year, And Well-Known Foreign Institutions Are Eager To Buy A-Share Core Assets

After the implementation of the new regulation, the refinancing market will usher in a new year. Since the implementation of the new regulation on February 14, 2020, the fixed increase market has always maintained a high momentum.

Wind data shows that as of February 1, 2021, the new regulations have been implemented for nearly a year, and the actual scale of fund-raising is 811.4 billion yuan, an increase of 42.82% year-on-year.

It is worth noting that in the fixed increase projects implemented after the new regulations, well-known foreign institutions such as JP Morgan, UBS AG, Goldman Sachs and hillock have repeatedly appeared in the fixed increase list of leading companies such as Aier Ophthalmology, yaomingkant and Engel, and frequently scrambled for core assets.

New regulations are implemented and refinancing is booming

On February 14, 2020, the new regulation of refinancing was officially implemented. According to the announcement issued by the CSRC, the policy relaxed the requirements from several aspects: the upper limit of the discount rate was raised from 10% to 20%; the lock-in period was shortened from 12 months / 36 months to 6 months / 18 months; the number of investors was limited from 5 / 10 to 35; the validity period of the approval was extended from 6 months to 12 months; the refinancing conditions of gem were cancelled for two consecutive years, and the asset liability ratio was higher than 4 5% limit.

After the issuance of the new regulations, the fixed increase market is heating up rapidly.

Wind statistics show that after the implementation of the new rules, a total of 385 enterprises have implemented private placement in the past year. The total amount of funds raised was 811.417 billion yuan, an increase of 71.88% compared with 224 enterprises in the same period of last year, and the total amount of funds raised was 568.167 billion yuan, an increase of 42.82%.

An investment bank of a securities firm in Beijing said that the implementation of the new rules ushered in the new year of the refinancing market, with high enthusiasm for institutions to participate, and various securities dealers are increasing their efforts to contract and sell.

Ren Lang, an analyst at the small and medium cap of open source securities, pointed out that the implementation of the new refinancing policy promoted the recovery of the fixed increase market. In 2020, the number of newly announced fixed increase plans reached 926, a substantial increase of 313.1% compared with 222 in 2019. The number of new issues and financing scale increased rapidly from 30-40 cases per month and 30-40 billion yuan before the new deal to 90-100 cases, more than 100 billion yuan.

In the general environment of fixed increase market warming up, it is common for a single target to increase 10 billion level. Wind statistics show that since the new regulations were added, there have been 14 cases in which the actual scale of funds raised is more than 10 billion yuan. Among them, China shipbuilding, Haitong Securities and FAW Jiefang have raised 37.4 billion yuan, 20 billion yuan and 19.9 billion yuan respectively.

Attractive fixed bonus

The fixed value-added market continues to be hot, and the participating institutions are also profitable.

In 2020, public funds will be the main participants in the fixed increase market. According to the proportion of institutions allocated, the proportion of public funds allocated will reach 24.43%. Other participants include insurance capital, securities companies, trust and industrial capital, etc.

Public offering institutions participating in private placement have gained considerable floating profits. For example, wind data, a pioneer of Guangfa science and technology managed by Liu Gesong, shows that the fund participated in the fixed increase of Kangtai biology with 500 million yuan, and obtained 4.5455 million shares. Based on the closing price of 157.88 yuan on February 2, the floating profit of the investment exceeded 200 million yuan. Kangtai bio was listed on the gem in February 2017, and its main business includes the R & D, production and sales of human vaccines.

Securities companies are one of the institutional forces involved in the fixed increase subscription. Specifically, more than 40 securities companies participated in the fixed increase last year, with a total subscription amount of about 28 billion yuan. In terms of the number of participants in the fixed increase, CICC participated in the fixed increase of 45 companies, which was the largest number of securities companies.

Private equity institutions are also actively involved. Gao Yi assets Deng Xiaofeng also participated in the fixed increase of several enterprises in 2020, including 160 million subscription of central shares, fixed increase price of 20.18 yuan / share, allocation of 7.9286 million shares; allocation of Jinggong steel structure of 12.1457 million shares, fixed price increase of 4.94 yuan / share. Up to now, these two fixed increase floating profits have exceeded 68 million yuan.

However, there are also institutions involved in the private placement of losses, such as ningquan assets managed by Yangdong, the industry's conscience, to participate in the placement of tianxiaxiu at the price of 16.65 yuan per share. Yesterday, the opening price of tianxiaxiu was 12.15 yuan, a drop of 37%.

Foreign funded organizations rush for food

After the implementation of the new regulations, leading shares such as Aier Ophthalmology, Yaoming Kant, Engel and Ningde times have increased, and Chinese and foreign investment have begun to pile up.

Among them, the largest number of foreign shareholders participated in the fixed increase of Yao Ming Kant. On September 25, 2020, Yaoming Kant completed a fixed increase of 6.5 billion yuan. The announcement showed that 17 investors finally obtained the fixed increase share. Among them, Macquarie Bank of Australia, Deutsche Bank, UBS AG and other foreign institutions were successfully allocated. UBS AG spent 1.506 billion yuan to win the fixed increase of more than 20%.

Secondly, Aier ophthalmology and Engel Co., Ltd., with 5 foreign funded institutions. In the fixed increase of 5 billion yuan of the leading lithium battery diaphragm company, Tianjin Liren and Zhuhai Haocheng, two private equity funds of Hillard capital, have subscribed for 1.5 billion yuan, JP Morgan has subscribed for 450 million yuan, accounting for 9% of the total amount; Bill Gates Foundation has subscribed for 200 million yuan, accounting for 4% of the total amount; UBS AG has subscribed for 170 million yuan.

In addition, Hillard capital participated in the fixed increase of Ningde times and Tongwei shares on the new energy track, and took part in the fixed increase of Klein on the pharmaceutical track.

Market participants said that most of these companies are leading enterprises with a market value of more than tens of billion yuan. The secondary market has good liquidity, and its market share will be further improved in the future. All of these companies are the assets that foreign institutions are concerned about.

It is worth noting that 9 institutions such as Hillhouse invested 10 billion yuan in Ningde era, a leading lithium battery enterprise, in July last year. On February 1, Ningde Times announced that 5.25% of the total shares held by Hillhouse capital and other institutions would be lifted on February 4. As of now, the floating profit of the nine institutions totaled 25.3 billion yuan.