* ST Xinwei 43 falls and stops after a huge deal of public offering ceiling big escape

category:Finance
 * ST Xinwei 43 falls and stops after a huge deal of public offering ceiling big escape


After waiting for nearly three years, they finally sold it! The manager of a public offering fund said, Most of the positions have been sold on the trading board today, and a small part of them are going to be sold tomorrow. Fund managers with this sentiment should be in the minority. Wind data show that as of the first half of the year, 132 institutional products have * ST prestige, of which 121 are public fund products.

There are passive funds that choose to flee at the drop limit. * ST Credit has long been removed from the mainstream index, and for this kind of stock, we directly commissioned the sale at the drop limit. Today, open the drop limit, the vast majority of index funds should be sold, it is unlikely to do too much timing action on this stock. An index fund manager said.

Another ETF fund manager said that direct selling was definitely the first choice, and it would wait a day or two at most. On the one hand, the main purpose of resale is to make more profits for investors, but at present the proportion of the market value of * ST Credit is very low. One or two more fluctuations have very little impact on net value. On the other hand, there are risks in timing of * ST Credit. Prior to that, the stocks with continuous declines and stops have been opened and dropped for a short time, and then followed up. Continuous case of stop and fall. If we do not flee in time, we may lose more.

A public offerer adds that * ST shares are basically prohibited from investing in public funds. Once there is a chance to sell after a continuous fall, they are usually sold first. For index funds, * ST Credit does not belong to index component stocks, but will sell as soon as possible. The timing of individual stocks does not conform to the concept of index funds.

Selling means that the previous ups and downs are finally settled. Wind data show that as of the first half of the year, 121 public funds held * ST Credit 40.19.99 million shares, with a total stock market value of 587 million yuan. However, by the close of September 9, the market value of 40.19 million shares had shrunk to 68.339 million yuan, and 121 public funds had a total loss of more than 500 million yuan.

Bulk trading is difficult

In the long two years and seven months, in the 42 consecutive trading days of a word drop, in addition to waiting, public funds have other ways to deal with * ST prestige?

In theory, for long-term suspension or continuous decline of stocks, public funds can be dealt with through bulk trading and other means. However, there are two difficulties: first, it is not easy to find a counterparty in bulk trading; second, there are price constraints in bulk trading, usually discounted by up to 10% compared with the previous trading day. However, for stocks with continuous drop or long-term suspension, such prices are undoubtedly unattractive. The index fund manager said.

If we can get a big discount, such as a discount, we can theoretically find a buyer. However, there is moral hazard, because the market is changeable, it is not easy to accurately predict when the relevant stocks can resume trading and open a continuous drop and stop, and public funds generally do not operate like this. The ETF fund manager added.

Many fund managers believe that in this case, adjusting valuation is an important means for public funds to protect the interests of holders, and the relevant funds have repeatedly downgraded the valuation of * ST prestige. The above-mentioned public fund manager said: The end of 2016 began to suspend, at the beginning we adjusted the valuation of * ST prestige, and then many consecutive adjustments. However, with the stock price falling from 14 yuan to 2 yuan per share, its share of net fund value is less than 0.5%. The impact is getting smaller and smaller. Valuation can no longer be adjusted according to the contract.

The fund manager added: For the problem stocks, although adjusting the valuation will affect the net value of the fund on that day, it can prevent liquidity problems caused by large redemptions. If the valuation is not adjusted, the first redeemed investor is equivalent to selling the problem stocks at a high level, and subsequent losses are transferred to the investors who choose to continue holding. In extreme cases, when the fund copes with large redemptions and large sales of other stocks, it will cause other stocks to fall or even stop.

Its hard to repeat the situation.

In the view of the industry, such a situation is difficult to repeat in the future.

The ETF fund manager said: At present, there are more stringent requirements on the suspension time of individual stocks. The suspension time rarely exceeds one month, and the number of suspended stocks is also significantly reduced. For example, the suspension of * ST Xinwei for two and a half years is almost impossible to repeat. In November 2018, China Securities Regulatory Commission (CSRC) in its Guiding Opinions on Improving the System of Restructuring and Restoring Stocks of Listed Companies made clear the principles of non-stop trading as an exception, short-term suspension as a principle, long-term suspension as an exception, discontinuous suspension as a principle, and continuous suspension as an exception. At the end of the year, the Shanghai and Shenzhen Stock Exchanges issued new rules on suspension and reinstatement of the stock market. It is clear that if a listed company plans to issue shares to purchase assets, if it applies for suspension, the suspension time shall not exceed 10 trading days.

In addition, China Securities Regulatory Commission (CSRC) publicly solicited opinions on the Guidelines for Side Bag Mechanism of Public Offered Securities Investment Funds on August 16 this year. On the same day, the Fund Association issued the Standards for Operation of Side Bag Mechanism of Securities Investment Funds (Draft for Opinions), which will better protect the legitimate rights and interests of investors, especially small and medium-sized investors.

However, industry insiders believe that the side-pocket mechanism will be more suitable for bond funds. The manager of the aforementioned public offering fund said: If the bond can not be paid directly to zero, the valuation of the bond can be adjusted unlike that of the stock. The ETF fund manager adds that the draft clarifies that ETF and LOF do not use side bag mechanism in principle, mainly considering that there are many arbitrage traders and market makers in listed funds, side bag mechanism may restrict them, and adjusting valuation is enough to protect the interests of holders. Bond funds are limited by the lack of liquidity of individual bonds and are more likely to use the side-pocket mechanism. A proactive fund manager reviews the thunderstorm* ST prestige and concludes: In the future, companies with problems try not to touch, although some suddenblack Swan incidentcan not be judged in advance, but some can be predicted in advance. In fact, * ST Credit has been controversial since its inception. Its business ranges from the Grand Canal to Ukrainian engines. It wants to do too much and does not focus on its main business. Reporter Lin Ronghua and Li Huimin: Responsible Editor of China Securities News: Yang Bin_NF4368

However, industry insiders believe that the side-pocket mechanism will be more suitable for bond funds. The manager of the aforementioned public offering fund said: If the bond can not be paid directly to zero, the valuation of the bond can be adjusted unlike that of the stock. The ETF fund manager adds that the draft clarifies that ETF and LOF do not use side bag mechanism in principle, mainly considering that there are many arbitrage traders and market makers in listed funds, side bag mechanism may restrict them, and adjusting valuation is enough to protect the interests of holders. Bond funds are limited by the lack of liquidity of individual bonds and are more likely to use the side-pocket mechanism.

A proactive fund manager reviews the thunderstorm* ST prestige and concludes: In the future, companies with problems try not to touch, although some suddenblack Swan incidentcan not be judged in advance, but some can be predicted in advance. In fact, * ST Credit has been controversial since its inception. Its business ranges from the Grand Canal to Ukrainian engines. It wants to do too much and does not focus on its main business. Reporter Lin Ronghua and Li Huimin