Securities Times reporter Liu Yiwen

  The sponsor not only sponsored the stock, but also participated in the underwriting and co-investment, and then a lot of research reports came out.

  Recently, CITIC Securities released a research report on Hemai, the "most expensive new stock in history".

According to the research report, the share price of Hemai shares can reach 1,000 yuan.

CITIC Securities is the lead underwriter of Hemai, underwriting 363 million yuan of abandoned new shares and co-investing 112 million yuan.

China Mobile is also similar. CITIC Securities and CICC both sponsored and underwritten, and recently released a bullish research report.

  According to the relevant regulations of the China Securities Association, the IPO sponsor and lead underwriter shall not issue relevant reports within 40 days after the issue price is determined.

The above case has exceeded a 40-day silence period.

  However, the above provisions are for the sponsor or lead underwriter acting as an IPO.

However, when the sponsor has both co-investment and underwriting, is the silent period consistent with this or is there any other regulation?

People from a number of research institutes told the Securities Times reporter that it is currently unclear.

  Sponsoring, investing, underwriting and singing more one-stop

  Recently, CITIC Securities released a research report entitled "Hemai Shares: Micro-Inverse Rising Star, Huge Potential".

According to the research report, Hemai is deeply engaged in the field of component-level power electronics and is the world's leading micro-inverter manufacturer. Its products have advantages in cost, applicability, performance and reliability, with outstanding cost performance and competitiveness, and continue to expand its sales network and customers. Group, the business is growing rapidly.

The research report predicts that the company's earnings per share (EPS) from 2021 to 2023 will be 4.93 yuan, 12.47 yuan and 22.50 yuan, respectively, with a target price of 1,000 yuan (corresponding to 80 times PE in 2022), the first coverage, and a "buy" rating.

  It is reported that CITIC Securities is the lead underwriter of Hemai’s IPO, investing 363 million yuan to underwrite 650,000 shares of Hemai’s abandoned shares; in addition, it also made follow-up investments through its subsidiaries, and received an allocation of 112 million yuan.

To this end, CITIC Securities invested a total of 475 million yuan in Hemai shares.

  In addition to the stock of Hemai, CITIC Securities is also optimistic about China Mobile's share price.

  Recently, CITIC Securities released a research report "How to Look at China Mobile's Alpha".

According to the report, China Mobile is a high-quality core asset with both technology and consumption attributes. The growth logic in the 5G era has been reconstructed and has great allocation value, giving China Mobile A shares and Hong Kong stocks 1.3 times and 1.0 times the average price-to-book ratio (PB) in 2022, respectively. ), corresponding to the target price of 75 yuan and 70 Hong Kong dollars, respectively, maintain a "buy" rating.

  CICC also released a research report "China Mobile (600941.SH)/China Mobile (0941.HK): CHBN multi-wheel drive, leading operators lead the high-quality development of the industry".

According to the report, China Mobile gave an outperform rating to the industry for the first time, with a target price of 81.00 yuan.

  CITIC Securities and CICC are the joint sponsors and lead underwriters of China Mobile.

The two joined other underwriters to underwrite a total of more than 700 million yuan of China Mobile's abandoned new shares.

  Is it legal to sing too much?

  Some market investors believe that there may be irregularities in the above-mentioned acts of sponsoring, underwriting, co-investing, and publishing research reports.

  In this regard, there are relevant regulations in the "Code of Practice for Issuing Securities Research Reports" implemented by the Securities Association of China in June 2020.

Article 24 of the Code of Practice states that when an operating institution publishes a securities research report, it shall establish and improve the information separation wall system in accordance with the relevant provisions of the "Interim Provisions on Issuing Securities Research Reports" and the "Guidelines for the Information Separation Wall of Securities Companies", and follow the period of silence. arrange.

  A sponsor or lead underwriter acting as an IPO of an issuer's stock shall not issue a securities research report related to the issuer within 40 days from the date when the issue price is determined and announced.

  The price announcement date of Hemai shares was December 9 last year, and the release date of the bullish report of CITIC Securities Hemai shares was February 8, with an interval of 2 months.

China Mobile's pricing announcement date was December 21 last year, and the reports of CITIC Securities and CICC were both released on February 8, with an interval of nearly 50 days.

  If calculated according to the 40-day quiet period, the release of the research report is compliant.

However, the reporter also noticed that the above-mentioned provisions are aimed at the sponsor or lead underwriter acting as an IPO.

However, when the sponsor has both co-investment and underwriting, is the silent period consistent with this or is there any other regulation?

People from a number of research institutes told reporters that it is currently unclear.

  "Don't rely too much on research reports"

  Some research institutes also said that underwriting includes underwriting and agency sales, so for underwritten stocks, the above-mentioned 40-day quiet period should also be observed.

In the case of co-investment, the stipulation that "relevant securities research reports shall not be released within 40 days from the date when the issue price is determined and announced" is still applicable.

  "However, for a listed company with a shareholding ratio of more than 1% of a securities company or its holding subsidiaries, if a securities company publishes a research report on the listed company, it needs to specify in the research report that the shareholding ratio exceeds 1%." The reporter said that this provision has nothing to do with the quiet period.

  "Research reports need to be reviewed for compliance before they are released." A person from a medium-sized brokerage research institute told reporters, "Whether the research business or the researcher is in a silent period is one of the important contents of the compliance review of the research report. It has not been reviewed for compliance. All research reports are prohibited from being published.”

  "Stocks underwritten by securities firms themselves should be allowed to be covered by research reports after the quiet period." A source from a securities firm told reporters, "There are many star projects in big investment banks. "

  Another interviewee told reporters that research reports have basic normative requirements, but they are not responsible for the rise and fall of stocks.

There are both bullish and bearish research reports in the market, but the final direction of the market cannot be determined by a single research report.

"Investors should have a wider understanding of market information, especially the trend of institutional real money trading. The information of research reports can be referred to, but investment should not rely too much on research reports."