Ke, Chong Two Board Closed Fund To Declare Dense Tide: Registration System Reform Funding For War Is Imminent.

With the start of the registration system reform of gem, the ice breaking of A share issuing system is entering the second stage of tackling difficulties. How to inject long-term funds around market demand is becoming a new proposition.

In twenty-first Century, the economic news reporter was informed that there might be a larger wave of IPO based on the registration system reform trend around gem and Ke Chuang board, and a number of public offering agencies were launching a closed public offering fund related to the two boards of the creation and branch. Communication is not related to promotion.

According to the public offering close to the exchange, the purpose of these funds is to better cooperate with the steady progress of registration system reform, and these products are also expected to be listed on the stock exchange in the form of LOF in the future.

It is worth mentioning that since last year, a lot of science and technology theme funds issued by the public offering agencies have gained relatively good returns after a year or so of operation. Some analysts believe that this will help to promote the collection of related funds and two board closed funds.

In the industry view, the intensive declaration of these products will help hedge the siphon effect and potential market volatility risks that may arise from the oversize of the IPO under the registration system, and will also guide the market style to focus more on long-term investments.

Ke, Chuang two board, new base surge

In May 18th, a closed-end fund prepared by Yi Fang Da fund, "Yi Fang Dako, a three year closed operation hybrid securities investment fund," completed its report to the SFC.

As a matter of fact, this is just the tip of the iceberg, which has recently been closed up by closed compact funds.

Since May 13th, huitianfu has been selected for its growth and development. It has been selected for 3 years in the south, and 3 years in the rich countries, and 2 years have been completed.

Coincidentally, in May 12th, Guangdong Development Fund also announced a closed end fund for gem. "GF gem selects 2 years of closed operation and flexible allocation of hybrid securities investment fund", which announced earlier such products, as well as a number of public offering institutions including Huaxia, China, Yinhua, Huaan and so on.

According to incomplete statistics of the twenty-first Century economic report, as of May 20th, the total number of funds that had been submitted for registration was 6, while the closed fund for gem was 11.

It is worth mentioning that this kind of fund is different from the Ke Chuang Chuang theme fund which was established before and after the opening of the science and technology board in 2019. Its main investment scope will be consistent with the direction of the scientific creation board and the growth enterprise board emphasized in the name.

The "science creation fund" refers to the fund invested by the company, not only refers to the investment board or the gem, but the science creation board and the growth enterprise board fund are different. Their names contain the funds of the scientific creation board and the growth enterprise board, and the investment scope will be more focused on the plate to which they are directed. A public offering product designer said, "the main operation of these funds will be to find suitable investment targets in Ke Chuang Chuang and gem."

In twenty-first Century, the economic report reporters learned from many parties that most of the public offering agencies were competing to declare such funds at this point, which is closely related to the regulatory authorities' preparations for the registration system reform, and the declaration of related products by many agencies is also a result of the active promotion of the exchange.

"These funds and exchanges require reform supporting measures, the Shenzhen Stock Exchange corresponds to the gem fund, the Shanghai Stock Exchange corresponds to the" Chuang Chuang board fund ". A public offering close to the exchange said, "the two exchanges have communicated with the fund companies that declare products, and have actively promoted the preparation and declaration of these products."

"After the completion of the offering, most of these products are expected to be directly listed on their respective exchanges and become LOF products, so as to solve the liquidity problem caused by closed design." The above public offering personage discloses, "this will also be the system convenience provided by the exchange for this kind of fund."

In the view of analysts, the exchange is pushing the rapid declaration of such funds. On the one hand, it is supporting the registration system reform which is advancing rapidly. On the other hand, it is also related to the advance plan of the matching funds for the exchange.

"In the direction of the reform of the new share system, although there is a certain degree of difference between the Chuang Chuang board and the gem, it is inevitable that the two exchanges still have a certain competitive relationship. On the one hand, they compete for high-quality enterprises, and on the other hand they must contend for institutional investors and long-term funds." A strategist at a listed brokerage firm in Beijing has pointed out that "the reform of the science and technology board has just started for nearly a year since the reform of the gem has just started. However, the closed funds of the two blocks start to declare at the same time, to a certain extent, the performance of the exchange for the reform of long-term matching funds.

A number of public offering agencies are launching intensive closed public funds related to two boards.

Ten billion fund matching reform?

At present, the important reason for the intensive establishment of closed-end funds is still related to the larger scale of new shares raised by registration reform.

"Some issuers may have difficulty in listing because of profitability and fundamentals in the past approved system. However, under the registration system, the difficulty of listing is greatly reduced when the information disclosure is true and complete, and all aspects meet the requirements of the exchange." A Shanghai listed brokerage investment bank said.

"This also means that the speed up of registration reform may lead to more IPO enterprises' issuance and fundraising, and the demand for fund-raising in the large market, and easily induce the" bloodletting effect "- some investors may participate in the new market, and the stock market may be affected by the transfer of funds. The investment bankers said.

"Once the impact is expanded, it will lose more for the market. On the one hand, the stock price of the stock company will be impacted, investors may suffer losses, and even the liquidity risk of the market will increase. On the other hand, the downward movement of the stock market valuation center will further bring pressure on the issue price of the new shares." The investment bank said.

"Therefore, we need to co-ordinate investors at the investor level to prevent financial risks caused by profit seeking." The investment bank pointed out that "if we can guide more companies to issue the placement method in the process of issuing new shares, we will indirectly encourage new funds to be incorporated into the lock period management in the form of strategic distributors, thus forming a long-term investment encouragement."

The potential products in these declarations will provide incremental funding for subsequent registration system reform, and undoubtedly become the focus of market attention.

Data show that since last year, the average size of the 18 science and technology innovation closed funds is about 886 million yuan. If we calculate the data according to this data, 17 two board closed funds will bring about no less than 15 billion 62 million yuan of capital supply to the market.

In addition, according to a public offering, the declaration of closed-end funds on the main board and the Chuang Chuang board may be more than that.

"Finally, the establishment of the establishment of the Science Board or the gem closed fund may be more than those, and it is estimated that there will be more agencies to declare such products later." The public close to the exchange said, "in addition, some closed funds created by science and technology last year did not exclude participation in the investment of the" Chuang Chuang board, the gem, and the new and even placement. "

In the view of the above investment bankers, we do not rule out the IPO of gem and Chuang Chuang board in the future. They will also highlight the strategic placement system and link them with the products in terms of maturity and investment style so as to create long-term investment ecology.

"Some GEM companies and Science Innovation Board companies may highlight the financing role of strategic placement at the start stage, and guide them to become long-term investors. Besides, there may also be more types of long-term funds such as venture capital and so on, which will be guided to pay attention to new opportunities for Chuang Chuang and gem." The investment bankers pointed out.

Replicability of "science achievement"

So many science and innovation funds are being declared on the road, and their performance is also concerned by the market.

It is worth mentioning that since last year, the science and technology theme fund that has been set up has indeed achieved better performance.

According to the twenty-first Century economic report reporter statistics, in the two or three quarter of 2019, the fund of the founding of science and technology has been running for about 1 years. Over 11 funds have been established since the rate of return is not less than 40% (A, C share separately).

Among them, the South Science and technology innovation A and C two disciplines create theme products since the establishment of the return of up to 84.21% and 82.69%, in addition, Yi Fang Da technology innovation, Huaxia innovation technology A also achieved 66.43% and 59.87% since the establishment of the return.

Even in the closed end fund of science and innovation, Dacheng Ke created 3 years of theme, 3 years of innovation and 3 years of innovation in ICBC, and 55.14%, 46.70% and 46.45% respectively.

Some analysts pointed out that the relatively high yield of the fund originated from the overall valuation of technology stocks since the second half of 2019.

"New energy vehicles, 5G, semiconductors and other technology stocks in fact led to a rise in the market, if we hit the corresponding higher target, we can get good results." "These funds have become the beneficiaries of this technology stock market," said a person in charge of a private equity firm in Shanghai.

However, the proceeds of this kind of fund are not derived from the science and technology board. For example, at the end of the quarter, the position of Southern technology innovation A is almost all of the main board or GEM companies except Jinshan office.

"At that time, the valuation of the science and technology board was relatively high, so most of the public offerings were still unwilling to touch, even if it was the fund of science and technology, but these products still gained profits through investment in the main board and GEM companies." A Beijing public offering product pointed out. "The result of this kind of income may objectively bring about a certain effect on the sales of today's gem and gem funds."

But there are also insiders suggesting that since last year, whether the outstanding achievements of the science and technology theme fund could be duplicated in the future gem or the CIC closed fund, there is still huge uncertainty.

"If these funds are to invest mainly in Chuang Chuang and GEM companies, they will inevitably face the problem of overvaluation, because there may be a problem of high market heat at the moment of registration reform. Therefore, when the technology stocks and related sectors are relatively hot, whether the future will participate in the purchase of such funds is a need for investors to be vigilant." The above private placement authorities pointed out.