Introduction to this report:
On May 24, the CSRC and the Exchange issued the official draft of the new regulations on shareholding reduction, comprehensively improving the system of shareholding reduction rules, maintaining the order of market transactions, and strongly protecting the legitimate rights and interests of small and medium-sized investors. In the third week of May, there was no IPO in Shanghai and Shenzhen markets.
As of May 24, only 3 new shares have been issued by Shanghai and Shenzhen, which are expected to be listed in the next two weeks.
Summary:
The CSRC and the Exchange issued the official draft of the new rules on shareholding reduction, comprehensively improved the system of rules on shareholding reduction, and built a benign ecology of A-shares. On May 24, the CSRC issued the Interim Measures for the Administration of Share Reduction by Shareholders of Listed Companies and the official draft of the Rules for the Administration of the Shares of the Company Held by Directors, Supervisors and Senior Managers of Listed Companies and Their Changes, and the Exchange simultaneously issued the guidelines for share reduction and inquiry transfer. This revision comprehensively improved the shareholding reduction rule system, strictly regulated the shareholding reduction of major shareholders, especially controlling shareholders and actual controllers, and resolutely prevented all kinds of bypass shareholding reduction. The rules require the persons acting in concert of the major shareholders and the major shareholders to jointly abide by the shareholding reduction restrictions, and clarify that the controlling shareholders and the actual controllers shall not reduce their shares through centralized bidding transactions or block transactions under the circumstances of breaking, breaking the net, and failing to meet the dividend standards. At the same time, it further clarifies that all parties shall continue to jointly abide by the original shareholding reduction restrictions after the divorce of the directors, supervisors, and senior executives. Through more detailed and strict regulatory measures, we blocked the space for reducing arbitrage, maintained the order of market transactions, and built a benign ecology of the A-share market.
In the third week of May, the performance of the secondary new sector was differentiated. The new stock index fell 1.30% that week, and the near end secondary new stock index rose 2.57% that week. In the third week of May, the overall performance of the near end sub IPO within four months of listing was better. Since 2023Q4, the pace of IPO has slowed down, and there are only 27 constituent stocks in the near end sub IPO index, of which Ruidi Zhiqu has risen by more than 50% in a single week, driving the overall upward trend of the index. At present, there are still 169 constituent stocks in the new stock index. Nearly 70% of the constituent stocks fell that week, and the index fell 1.30% that week. As of May 24, the deviation of the new stock index from the Shanghai Stock Exchange Index has dropped to 106.40%, and the deviation of the near end secondary new stock index has risen to -10.65%.
The pace of issuance of new shares slowed down, and no new shares were listed in the Shanghai and Shenzhen markets that week. Since August 2023, the regulator has conducted first and second level countercyclical adjustment, taken phased tightening measures for IPO and refinancing, and slowed down the acceptance, meeting, registration and other review processes. In April 2024, the new "National Nine Rules" and related supporting systems will be implemented, and the listed end will be further tightened. In the third week of May, there was no IPO in the Shanghai and Shenzhen markets. As of May 24, there were only three new shares that had been issued but not listed in Shanghai and Shenzhen. It is expected that they will be listed successively in the next two weeks.
Secondary new secondary market: secondary new shares were slightly corrected. In the third week of May, the Shanghai Composite Index fell 2.07% in a single week. Only the coal, public utilities and agriculture, forestry, animal husbandry and fishery industries rose positively in that week, while other industries fell. From the perspective of the secondary new market, nearly 70% of the new shares fell. Only 15 of the 45 shares (excluding the new shares listed in the week) listed in the Shanghai and Shenzhen markets in the past half year rose in the week. The overall average decline of the 45 secondary new shares was 0.15%, and the secondary new shares retreated slightly.
Risk tip: be alert to the risk of increasing the IPO breaking rate and breaking depth; The pace of IPO continues to slow down risks.
