"Stars and hats" stocks frequently appear in public offerings to upgrade the demining manual busy

Since May, a total of more than 90 A-share listed companies have been given risk warnings, thus "wearing stars and hats", including the explosion of large positions of public funds. The reporter of China Securities News learned that for active equity funds, once the individual stocks in position are ST, the risk control of the fund company requires immediate clearance, but if the individual stocks cannot be sold due to the continuous decline limit, it needs to be discussed on a case by case basis.

With the further tightening of the compulsory delisting standards, the compliance and risk control aspects of some large-scale public offerings have increased the screening of individual stocks with potential ST risks in accordance with the requirements of the new "National Ninth Article". For example, an early warning mechanism should be set up for failing to meet the dividend requirements. In addition, the public offering industry is still looking for answers to how the index based and quantitative funds can make rapid response to their ST stocks.

● Our reporter Yang Wanyu

Several publicly offered shares with large positions explode

According to the Letter of Decision on Administrative Punishment issued by Xinjiang Securities Regulatory Bureau, Zhongtai Chemical has false records in its 2022 annual report; The related party transactions occupied by the controlling shareholders and their related parties' non operating funds were not disclosed in a timely manner, and there were major omissions in the 2021 and 2022 annual reports; There are false records and major omissions in the annual report of the duration disclosure of corporate bonds and debt financing instruments involved in the case, and the information disclosure of the relevant bond prospectus is inaccurate.

On May 21, Zhongtai Chemical was implemented with "other risk warning", and the stock abbreviation was changed from "Zhongtai Chemical" to“ ST Zhongtai ”。 Choice data shows that by the end of 2023, this share has been held by 221 institutions, with a total of 1.105 billion shares, accounting for 42.65% of its total capital stock. Among them, 214 mutual funds held 158 million shares in total, accounting for 6.1% of their total equity.

As of May 21, 173 A-share listed companies have been ST listed since this year. Since May, 94 shares have been ST listed. According to the data, of the 173 ST stocks mentioned above, only the institutional heavy position stocks.

According to Choice data, among the "hooded" stocks this year, by the end of 2023, ST Zhongtai ST fashion 、 *ST Jinke Public offerings all hold more than 100 million shares. ST Tianbang Holding more than 70 million shares through public offering. In addition, in terms of the number of shareholding funds, ST Jiuzhi 104 funds held 32.7575 million shares in total.

At the end of the first quarter, the ST trendy was still the "good heart" of public offering, with a total of 75.3521 million shares held by six funds* ST Jinke ST Aikang , ST Zhongtai and ST Tianbang both held more than 20 million shares through public offering.

From the perspective of funds with heavy positions in individual stocks, the main products are index products. For example, five of the six funds that heavily invested in the latest ST at the end of the first quarter were index or index enhanced products. In addition, the funds of * ST Jinke, ST Aikang and ST Tianbang are also index products.

Join the dividend warning mechanism

After the above stocks were ST, they all fell continuously for many days. The reporter of China Securities News inquired about several public fund managers and learned that if the individual shares held are ST, the risk control of the fund company generally requires compulsory clearance within a certain period of time.

"The Compliance and Risk Control Committee strongly recommends clearing." A fund manager told the China Securities Journal that according to the liquidity of the stock, if it is a company with a large market value, it can be sold quickly with good liquidity. The fund manager will clear the position of the individual stock as soon as it is ST. If it is a stock with a small market value that cannot be liquidated at the first time due to the rise and fall limit, it will further observe its investment performance price ratio, comprehensively consider the relationship between delisting risk, performance and stock price, and then make a decision.

If the position cannot be cleared at the first time, the fund manager needs to explain the situation to the investment decision-making department of the fund company, and discuss one case at a time. The above fund manager said: "For the small notes with continuous limit falls, the fund manager will comprehensively assess whether the valuation has been overly pessimistic about the future development and operation of the company after the continuous limit falls. If the degree of excessive pessimistic reaction is high, it is better to continue to hold and wait for appropriate selling points than to sell."

In April this year, the new "National Ninth Article" proposed to deepen the reform of delisting system, accelerate the formation of a regular delisting pattern that should be fully withdrawn and cleared in time, and further tighten the compulsory delisting standards.

The reporter of China Securities News learned that the compliance and risk control aspects of some large-scale public offerings have increased the screening of individual stocks with potential ST risks in accordance with the new "National Nine Rules".

On April 30, the Shanghai Stock Exchange released 9 business rules, including the Review Rules for Stock Issuance and Listing, in response to questions from reporters, and said that the introduction of "other risk warning" (ST) measures for cash dividends not up to standard in this revision of the rules is intended to urge the company to return to investors with stronger constraints. Unlike the "delisting risk warning" (* ST), a listed company will not be delisted just because its dividend is not up to the standard.

In response to this rule, a person in charge of a large public offering disclosed that his fund company has now added this indicator to its risk control compliance, set up an early warning mechanism, and timely screened out potential stocks that do not meet the dividend standards to avoid the fund's thunder. "The setting of dividend indicators is mainly to remind researchers who previously only paid attention to the growth of individual stocks and did not pay attention to the dividend level and dividend level of individual stocks," he said.

Rapid response to ST stocks

In practical operation, the problem that is quite troublesome for many public offerings is how index funds and quantitative funds can respond quickly to ST stocks.

At present, according to the first quarterly report of the fund, most of the index funds that have trampled on ST stocks since this year are products that track small and medium-sized indexes such as CSI 500 and CSI 1000, as well as products that track sub industry indexes, such as CSI oil and gas industry index, CSI livestock breeding index, and CSI all index real estate index.

"The constituent stocks of an index are generally exchanged every six months. If any constituent stocks are ST, the general index fund will not actively transfer out ST stocks, because once transferred out, the fund and index will have performance deviation." A public offering person said.

In addition, Choice data shows that a number of active quantitative products of a 10 billion level quantitative private placement have stepped on ST Zhongtai. Industry insiders said that because some quantitative products pay too much attention to volume and price trading indicators, they often become the hardest hit areas.

　　 CSC Recently, securities screened factors from multi-dimensional financial indicators, number of announcements, volume and price, and built a stock ST risk early warning model. The model shows that financial factors are far more important than transaction factors, such as volume price indicators and market value. The fundamental information of listed companies, such as profit, revenue and net asset scale, is the key factor to determine whether there is delisting risk. Marketers said that the above situation shows that the quality of earnings, revenue scale and asset status of listed companies are the key factors to assess their delisting risks.