China built into "double limit" issue is worth promoting

After five months of waiting for after, China on Wednesday formally implementing explain buy into was built. As this year's first only grail blue chip, China built into the new issues, no doubt, the great attention to the market. As early as in September last year has had success in the China will build, its originally set out to issue size is 3.5 billion, financing and to achieve 20 billion yuan of the giant. In the market downturn extreme in the background of shanxi coal with China last year shares into "big MAC" of the building, and have been interpreted as a major bad. But China built into the new issues but the certificate is not so, instead, their new issues still there were flashes. Window one, low p/e ratio is released. In 2009 the ipo market since the reform, last year in Shanghai stock market listing the motherboard of shares at 12.22 times the issue was creating p/e ratio is low; If from 2007,baseball sunglasses starting with China built into the issue of 10.59 times price-earnings ratio, only three steel than five years ago of fujian steel 10.34 times and 2008 years less than 10 times p/e ratio of new material issue with a little high. Therefore, even if the Chinese built into inquiry range to cap the price of 5.40 yuan issuing new shares, its ipo p/e ratio and low level. If an issuer further reduction if issue size, the ipo p/e ratio will also reduced. Point two, "double limit" issue. Before the ipo, an issuer basically all promised not to set more than the number of issued, also is our common says "set limit to not limit" issue, and China is to take a hand in building is limited and limitation of the model. The number of issued an issuer promises no more than 1.6 billion shares, or junk-rated not more than 5 billion yuan. This means that, no matter China built into final in what price issuing new shares, it is not more than 5 billion yuan or junk-rated the scale. Even the appearance of more than 5 billion yuan of the situation, will only in issue size fuss. The number of issued from 3.5 billion shares tuned to no more than 1.6 billion shares, or junk-rated from 20 billion yuan ($) for not more than 5 billion yuan, the Chinese/built "considering the demand to raise funds and capital markets actual situation, social influence and the future development of subsequent factors" after, take "thin body" issue is certainly worth extending, especially limitation distribution, but also in the market, establish a "example" role. For this company, we should to the show respect. China into the building of the "double limit" issue, maintained the many benefit is a win-win measures. First of all, the issuer after after the adjustment financing needs met. The issuer listed issuing new shares, the most important thing is being able to blend in urgent need of money. As long as financing requirements are met, and that the public is successful, China built into obviously doing it. Secondly, to ensure the underwriter's interests. 5 billion yuan financing limit, no small number, according to the lead underwriters or junk-rated underwriting fees for the same does not poor. Although more of the financing for the underwriter can bring greater interest, but there is no doubt that in locked or junk-rated, after the interests of the underwriter, also have the safeguard. Third, the low price to maintain the issue the interests of investors. On Wednesday, the listing in Hong Kong in China build H shares closing price of hk $7.28. According to the current 1 Hong Kong dollar against 0.812 yuan calculation, the h-share price of 5.91 yuan (RMB). That is, its relative H shares, China built into A shares of prices hit discount. And according to domestic brokers give valuations,mlb jerseys China built into the new shares also belong to the obvious low price distribution. The ipo system after two rounds of the reform, the "three highs" issue is popular, the deficiency in the system of course is the major factor, but the issuer and sponsors to agencies to steal more interests of market is also not ignore the important factors. While China into the building of the "double limit" issue, apparently can eradicate from one of the superb "magic weapons." China built since dare to eat into the first "crab" and made the model for the market, and the agency can absorb them whether the essence, and the generally useful?

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