Two-thirds of companies on the Sci-tech Innovation Board doubled their share prices after listing
Expanded to 140 listed companies on the first anniversary of the market, raising a total of 217.9 billion yuan; unicorns such as Ant Group "joined", and the market value of 6 companies exceeded 100 billion yuan
On July 22, the Science and Technology Innovation Board opened its first anniversary. In the past year, the Science and Technology Innovation Board has become the main force for A-share IPOs, expanding from the first batch of 25 listed companies to 140 listed companies, with a total market value of 2.8 trillion yuan.
As a pilot field for China's capital market, the Science and Technology Innovation Board took the lead in piloting the registration system, creating many precedents in the history of A shares. Over the past year, the Science and Technology Innovation Board has brought unprofitable listed first shares, red chip listed first shares, and first shares of the same shares with different rights to the A-share market, and has also brought reproducible experience to other sectors. Focusing on the performance of the Sci-tech Innovation Board in the past year, the Beijing News Shell Finance invited Xu Gao, chief economist of Bank of China Securities, Dong Dengxin, director of the Institute of Financial Securities of Wuhan University of Science and Technology, and Wen Huasheng, managing director of Dachen Caizhi, to discuss.
Expanded to 140 listed companies in one year
On July 22, 2019, the Science and Technology Innovation Board started to open, and 25 companies were listed for trading. On July 22, 2020, the number of listed companies on the Sci-tech Innovation Board reached 140, with a total market value of 2.8 trillion yuan, accounting for 3.5% of the total A-share market value; the Sci-tech Innovation Board companies raised a total of 217.9 billion yuan, accounting for A-share IPOs in the same period. Nearly half of the capital.
At the same time, the Science and Technology Innovation Board created many precedents in the history of A-shares with a more tolerant and open listing system, ushering in the first unprofitable listed company Zejing Bio, the first red chip share of China Resources Micro, and the first share with different rights. Guyou Kede and other companies that were unable to list on A-shares before.
Xu Gao used "the overall stability and many bright spots" to evaluate the performance of the Sci-tech Innovation Board in the past year. Within one year, the scale of the Sci-tech Innovation Board has expanded rapidly, and the support for financing of high-tech enterprises is relatively large. The registration system has been running relatively smoothly on the Sci-Tech Innovation Board for one year, and it is spreading to other sectors. In the past, A-share listings paid more attention to profitability. Due to the high threshold, many technology and innovation companies could only go overseas to list. The innovation of the sci-tech innovation board’s listing system has attracted many outstanding companies to go public in the past year. This not only enables companies to obtain sufficient financing support from the domestic capital market, but also enables domestic investors to share the dividends of the country’s economic transformation and industrial upgrading. "The institutional innovation of the Science and Technology Innovation Board has broken through a very large obstruction between investors and enterprises and is a win-win result."
Dong Dengxin said that in addition to its own development, the Science and Technology Innovation Board has also brought disruptive changes to the overall A-share market. The first is the implementation of the registration system reform, which can improve the efficiency of IPOs, shorten the IPO cycle, and reduce costs; second is the reform of the delisting system, where the sci-tech innovation board abolishes the suspension of listing, resumes listing, and relists, which makes junk stock resources lose value. In addition, the sci-tech innovation board has increased the inclusiveness of sci-tech innovation enterprises from the institutional level, which also means that investors will also be more tolerant of sci-tech innovation enterprises in the future.
Wen Huasheng said that the demonstration effect of the Sci-tech Innovation Board has driven the entire market's attention to technology companies. On the other hand, the sci-tech innovation board has also shown a certain driving effect. The capital market is an important part of cultivating innovation. The sci-tech innovation board has driven some regions with scientific and technological soil to continue to attract high-quality entrepreneurial talents and resources to form an innovative and entrepreneurial platform. A virtuous circle. For example, Shanghai has used the science and technology innovation board to drive the development of many technology companies.
Multi-unicorns "join", 6 companies have a market value of over 100 billion
The sci-tech innovation board has attracted many unicorn companies. For example, the domestic chip manufacturing giant SMIC landed on the sci-tech innovation board on July 16, the "first AI chip" Cambrian went public on July 20, and the financial technology unicorn Ant The group also announced the launch of a sci-tech innovation board listing plan. As of the close on July 22, the science and technology board has six companies including Kingsoft Office, SMIC, Cambrian, China Micro, Shanghai Silicon Industry, and Lanqi Technology with a market value of over 100 billion yuan.
Wen Huasheng believes that this means that the attractiveness of the science and technology innovation board for high-quality science and innovation enterprises is increasing. The market is forming a pyramid structure. Large, medium and small companies grow together. From a company with a market value of 10 billion to a company with a market value of 100 billion, this is the process of forming the pyramid structure.
Xu Gao believes that even on a global scale, the science and technology innovation board is very attractive to technological innovation companies, because China's capital market "is not short of money." Take SMIC as an example. In May last year, when SMIC was delisted from the U.S. stock market, its total market value was less than HK$50 billion. The total market value on the first day of listing on the Science and Technology Innovation Board exceeded RMB 500 billion, and the valuation of A shares was relatively high. Enterprises can obtain larger financing with relatively small equity, and the financing cost is lower than other markets, which will increase the attractiveness of enterprises.
Xu Gao is more optimistic about the prospects of the Sci-tech Innovation Board, which will eventually grow into a rival market with Nasdaq in the future. He believes that the financial system not only serves the real economy but also depends on the real economy. The development of the science and technology innovation board also depends on China's prospects for the development of high-tech enterprises. At present, the two countries with the largest number of unlisted unicorn companies in the world are the United States and China. Considering the continuous improvement of China’s scientific research capabilities, the number of global patent acquisitions is increasing very rapidly. Therefore, in this fertile soil of real economy and technological progress, The Sci-tech Innovation Board can leverage the development of China's real economy to grow into an internationally competitive market.
Two-thirds of the company's stock price doubles after listing and will stabilize subsequently
There is no limit on the rise or fall of new stocks on the Science and Technology Innovation Board in the first five trading days. Currently listed stocks have shown relatively high gains on the first day of listing.
As of July 22, the 140 companies that have been listed have an average increase of 163.87% on the first day of listing, and 91 companies with an increase of more than 100% on the first day, accounting for 65%, that is to say, nearly 2/3 of the companies are listed After the stock price doubled. Among them, the National Shield Quantum set a record with a first-day increase of 923.91%.
Regarding the pricing mechanism of the Science and Technology Innovation Board, Xu Gao said that the high increase in the first day of listing of new shares cannot be said to be due to the low price of the issuance. The average price-earnings ratio of IPO companies on the Sci-tech Innovation Board is about 70 times, which is much higher than that of the main board. This is because the issuance pricing mechanism of the Sci-tech Innovation Board is more market-oriented. The stocks of companies on the Sci-tech Innovation Board have risen sharply after they are listed. The reason for the small number of companies listed on the Sci-tech Innovation Board and the strong willingness of investors to follow may lead to a relatively large increase in stocks after listing. In the future, new listed companies will be continuously introduced in accordance with the registration system, and the stock trend will be more stable after matching the enthusiasm of investors.
Dong Dengxin believes that the secondary market of the Science and Technology Innovation Board has a bubble component, which may also overdraft the company's future growth. On the other hand, he proposed to cancel the market value placement model. Under the original approval system, there is an upper limit of 23 times the issuance price-earnings ratio, which is artificially lowering the price of new shares, leaving room for speculation in the secondary market, and ensuring investors to participate in new benefits. The market value allocation is a planned allocation model and is allocated to market shareholders. The result is a serious distortion of IPO pricing and blind new creation. The IPO pricing of the Science and Technology Innovation Board has been market-oriented, and there is no restriction on the issuance price-earnings ratio. The new launch is no longer a zero risk. At this time, the market value placement may cause potential risks. He suggested using the model of subscription for new shares in full payment.
As a primary market participant, Wen Huasheng believes that the stock price changes in the secondary market of the Sci-tech Innovation Board will also have an impact on the pricing of the primary market. The introduction of the registration system will accelerate the integration of investment strategies in the primary market and the secondary market in the future. The two will be more similar. The primary market must consider the performance of the company after listing, and investors in the secondary market will also combine investment in the primary market. Choose companies based on concepts. For example, some companies that have not yet made a profit actually have investment value. The sci-tech innovation board pilot registration system has brought many changes to the pricing system of the primary and secondary markets. It is a process of gradual unification of investment institutions in the primary and secondary markets. For some companies, the primary market pricing is not high, and subsequent investors can have certain benefits.
Future development direction: It is recommended to introduce T+0 to improve transparency
As the "newborn" of the capital market, the Sci-tech Innovation Board still has room for reform.
Dong Dengxin suggested that the Sci-tech Innovation Board can be the first to implement T+0 trading in the stage of no price limit. According to its statistics, among the sci-tech innovation board stocks listed so far, in addition to the large fluctuations in the stock price on the first day of listing, the four trading days after the first day have relatively converged, and most of them have not exceeded 20%. Therefore, in view of the concern that T+0 is likely to cause large fluctuations in the market, there is no need to worry too much at the stage when the new stocks on the science and technology board are not subject to price limits. If there is a T+0 reversal transaction, it is more conducive to the full game of supply and demand, which is very important for the balance of stock prices.
Another suggestion of Dong Dengxin is to extend the trading hours of the Science and Technology Innovation Board to be consistent with that of the Hong Kong Stock Exchange. At present, the A-share trading time is the shortest in the world, only 4 hours. He suggested that the trading time of the Sci-tech Innovation Board can be extended to the same as that of the Hong Kong Stock Exchange, that is, 5.5 hours. The opening and closing of the Hong Kong stocks at the same time can also promote Shanghai and Shenzhen. The integration of the three markets in Hong Kong is conducive to the upgrading of the Shanghai-Shenzhen-Hong Kong Stock Connect. In the future, conditions can be further extended to enhance the linkage with other international markets and facilitate the entry of foreign capital.
Xu Gao proposed that the science and technology innovation board should further improve its transparency in the issuance and listing process. The Science and Technology Innovation Board has different listing standards. Some listed companies are not profitable. The evaluation of companies depends largely on the accuracy of the data disclosed. Therefore, improving transparency is a very important aspect. At the regulatory level, penalties for violations of laws and regulations must also be increased.
Wen Huasheng pointed out that many systems of the Sci-tech Innovation Board are not considered innovative if they are viewed globally. Many of them are borrowing from systems that are already mature in overseas markets. The next development direction of the Sci-tech Innovation Board is also the further opening of institutional rules, including shorting individual stocks and shorting indexes, etc. "Since the Sci-tech Innovation Board is a test field, all rules should be introduced as much as possible."
Beijing News reporter Gu Zhijuan