(Economic Observer) What will "ant" becoming "elephant" bring to the A-share market?
China News Online, October 29 (Gao Zhimiao) Liu Hongxue, who has never "stocked" recently, started to pay attention to the stock market because she bought the strategic allotment fund of Ant Group.
"Using Alipay every day, if Ant is listed, can our ordinary users also get a bonus? I bought it with the mentality of a try. Anyway, the investment is very low." Liu Hongxue, who has just stepped into the workplace, told a reporter from Chinanews.com. .
On October 26, Ant Technology Group Co., Ltd. (Ant Group for short) disclosed the issuance announcement. After nearly 10,000 investment institution accounts, the final issue price of China’s A shares was determined to be 68.8 yuan per share (RMB, the same below). The total market value is 2.1 trillion yuan, and insurance and public equity institutions have also participated.
As the listing of Ant Group approached, more and more "Liu Hongxue" began to pay attention to the capital market.
So far, as the largest IPO project in 2020, what will the upcoming Ant Group bring to the A-share market?
Xia Lijun, a researcher at the Shanghai Institute of International Finance and Economics and a professor at the Antai School of Economics and Management of Shanghai Jiaotong University, said in an interview with a reporter from Chinanews.com that the "elephant" of Ant Group is listed on the Science and Technology Innovation Board, which will bring a share to the A share market. A whole new look.
"The A-share market has long been a market that matches the traditional economic model, not a market that matches the technological innovation economic model. The reform of the registration system and the establishment of the Science and Technology Innovation Board are gradually changing the ecology of China's capital market. The listing of Ants will Greatly improve the "technological content" of A-share companies with large market capitalization, and enhance investors' confidence in the healthy development of the capital market." Xia Lijun said.
Fu Ziheng, general manager of Huaxin Securities Private Equity Research Center, also said that Ant Group’s landing in A shares as a blue-chip technology giant has far-reaching significance in optimizing the structure of the domestic capital market and shaping the ecology of the stock market. It is in terms of A-share market stability, asset allocation, and derivatives. The role of creation and other aspects will be huge.
The listing of Ant Group also gives investors the opportunity to participate in the investment of leading companies in the new economy. Yang Delong, chief economist of Qianhai Kaiyuan Fund, told reporters: “New economy companies have more room for growth in the future, and their future growth expectations are also higher. It also needs to be verified gradually over time, so in the short term, if the valuation is too high, beware of the risk of the stock price falling."
Will more technology-based companies enter the A-share market in the future?
"With the advancement of the basic institutional reform of the capital market, our capital market is moving from a'country road' to a'highway', and the ecological environment of the capital market is constantly being optimized. It is expected that more and more science and technology companies will be The sci-tech innovation board’s sci-tech innovation attribute will also be improved when it goes public.” Xia Lijun pointed out.
Fu Ziheng also hopes that the future capital market will attract more startups with technological potential, so that it will be able to easily raise funds in the capital market, and then grow and become a "towering tree" in order to leave the capital market investment opportunities in China investor.
In the future, more and more unicorn companies will return to the A-share market. Yang Delong judges that this will greatly improve the proportion of new-economy companies in the A-share market, so that the A-share market can better represent the development of the macro economy.
It is hoped that the capital market will create a tolerant and strictly regulated market environment, and build an institutional environment and market mechanism that can truly promote entrepreneurship and innovation, so that technology companies can stand out.
In these respects, there is still a long way to go for the establishment of the sci-tech innovation board and the pilot registration system and the creation and optimization of the atmosphere and mechanism of the whole society, Fu Ziheng emphasized.
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