Seeking discount safety cushion fund and actively participating in fixed increase

 Seeking discount safety cushion fund and actively participating in fixed increase

Shuanghui development announcement shows that Xie Zhiyus Xingquan Yiyi fund has established a large position in the company through directional additional issuance. As of October 12, the company had 16.28 million shares of the company, the price of which was 48.15 yuan, and the market value of the position was nearly 800 million yuan. Xianju pharmaceuticals announcement also showed that Haifutong star fund manager Zhou Xuejun participated in the companys private offering.

Bairun shares of the recent private placement, all allocated to the public funds. Zhang Kun and Xiao Nan, star fund managers of e fund Co., Ltd., jointly attacked. Among them, 4.5828 million shares were allocated to e-fund medium and small cap companies managed by Zhang Kun, and 7.638 million shares were allocated to e-fund consumer industry managed by Xiao Nan. In addition, seven products, such as Dongfang hongruize, Dongzheng asset managements three-year fixed opening and Dongfang Hongrui covering Shanghai, Hong Kong and Shenzhen, also participated in the fixed increase of Bairun shares. According to the data, as of November 16, Dongfang hongruize held 14.36 million shares of Bairun shares, 8.08 million shares of small and medium Cap Fund of e fund, and 7.64 million shares of e fund.

In addition to the above public fund managers, private fund managers are also actively involved in the IPO of listed companies. The products managed by Deng Xiaofeng of Gaoyi assets have participated in the fixed increase of Jinggong steel structure and Zhonghuan shares in the past few months; several products managed by Liu Xiaolong by juming investment have participated in the fixed increase of precision forging technology, with an allocation amount of 120 million yuan.

First, fixed increase can buy shares of listed companies at a discount. Under the new regulation of refinancing, the bottom price discount is reduced from 10% to 20%, which means there is a good opportunity for high discount arbitrage. Although there is a six-month lock-in period for participating in the bidding, it is a good arbitrage strategy for fund managers to buy long-term good quality stocks at a certain discount when the stock prices of listed companies have risen sharply in the early stage. In particular, some funds have a certain position in the early stage. When participating in the fixed increase, they can sell their original shares at the market price, which can greatly reduce the cost of holding shares.

Second, the impact of participation in fixed increase on fund liquidity is reduced. According to the new rules of refinancing, the lock-in period of fixed increase by bidding is only 6 months, and it is not subject to the restriction of the reduction system, which makes the fund can speed up the capital turnover and reduce the liquidity risk.

It is worth mentioning that, with the end of the year approaching, the institutional ranking war has begun to heat up. For fund managers, especially public fund managers, although they know that many companies early growth is not small, they still dare not leave the market easily. Arbitrage through fixed increase is a relatively good choice.

From the fixed increase announcement of listed companies, many companies have a larger discount in fixed price increase. For example, according to the fixed increase announcement of Junsheng electronics on November 10, its fixed increase issuance price is 19.11 yuan / share, which is equivalent to 81.39% of the average trading price of 23.45 yuan / share in the 20 trading days before the first day of the issuance period, which has a certain safety cushion.

Source: Ren Hui, editor in charge of Shanghai Securities News_ NBJ9607