At the beginning of 2016, the Shanghai and Shenzhen stock markets fluctuated significantly. When the secondary market is difficult to find trading opportunities, public and private fund managers have turned their attention to the "primary and semi market" of listed companies. However, when private and public companies are exploring the fixed growth market of gold, many insiders remind that it is not an easy thing to explore the fixed growth market of gold, and a little carelessness will also encounter the trap of fixed growth. How to select industries and companies with reasonable discounts, solid fundamentals and certain growth potential, in fact, has a lot of knowledge.

Obvious discount advantage of fixed increase issuance

"The discount advantage of fixed increase issuance is obvious, and the company's growth and profitability can easily be rapidly improved. It can activate the secondary market in the short term, and it has stronger ability to withstand market fluctuations in the medium and long term. No matter how the secondary market fluctuates, the overall yield of fixed increase projects is considerable." Liu Kaiyun, manager of the fixed increase fund of Jiutai Fund, told reporters.

In Liu Kaiyun's view, the public offering fixed increase products provide investors with a flexible channel to participate in the private placement market, buy high-quality individual stocks at a discount in the form of private placement, and share the discount earnings, stock market systematic earnings and the achievements of the rapid development of listed companies.

When the current stock market risks are unpredictable, the characteristics of fixed increase and discount of listed companies naturally become a hedge for fund managers to avoid fluctuations in the secondary market. According to Liu Kaiyun, for the fixed increase projects issued between 2006 and 2015, the average return over the one-year holding period was 80.6%, and the average return over the three-year holding period was 181.5%.

Coincidentally, as of December 31, 2015, another Caitong Fund that is destined to increase the fund has successfully won 307 fixed increase projects since 2013, with a cumulative participation amount of 86 billion yuan, of which 135 projects that have been lifted have an average yield of 75%, and the number, scale and profitability of the successful fixed increase projects are among the top in the market.

Due to the low issuance conditions and fast review process, private placement has become the main way for listed companies to refinance - in 2015, IPO financing reached 157.829 billion yuan, and the amount of private placement financing reached 1217.42 billion yuan in the same period, 7.7 times the amount of IPO financing. In 2016, it is expected that more than 1000 listed companies will implement private placement, and the amount of capital raised is expected to exceed 1.5 trillion yuan.

According to the data, the average project income of one-year fixed investment increased by 85.49% when issuing targeted additional projects from 2006 to 2015, and the three-year fixed investment increased by 183.76% when issuing targeted additional projects in any of the above years.

Compared with the unpredictable changes in the secondary market share prices, some private equity institutions are also particularly enthusiastic about the research of fixed increase concept stocks. According to the statistics of Geshang Financial Management, in December last year, a total of 5 listed companies received more than 20 surveys from private equity institutions, including Zhongsheng Pharmaceutical, Maida Digital, Cross Border Access, Rongke Technology and Oriental Network, of which the first three involved the concept of fixed increase.

Skills in gold mining in fixed growth market

Why is the fixed increase market so hot? The relevant analysts of Geshang Wealth Management believe that private equity institutions can not only directly participate in the profits of private placement projects in the primary and half markets, but also can buy fixed increase concept stocks at low prices in the secondary market during the market bottoming out process, so as to earn the premium brought by fixed increase projects while ensuring liquidity.

Statistics show that from 2007 to 2014, in terms of the proportion of positive returns, the probability of obtaining absolute positive returns from participating in fixed growth capacity is as high as 70%; Especially since 2013, the positive return probability of fixed investment has significantly improved.

Referring to the selection of fixed increment projects, Liu Kaiyun said that they preferred industries with solid fundamentals and certain growth potential. The first is medicine, which can be determined to have a sustained and stable development for 10 to 20 years; The second category is consumer services. The gradual increase of per capita income can be expected. There will be no major inflection point in the medium and long term, and the upward trend is relatively certain.

"We focus on industries with high growth and stability, and also inherit the advantageous industries of the parent company." Liu Kaiyun said that they pay more attention to investments with high stability and greater certainty, while the company's quality, development foundation and clear strategic thinking are the real focus of investigation, rather than whether it is popular or not. They choose to do the main business in a down-to-earth manner, Companies whose growth and main business are definitely improved through fixed growth.

On January 13, the Jiutai Ruifu event driven hybrid fund, which was proposed to be the fund manager by Liu Kaiyun, was officially launched. This is also another effort to promote the fixed increase public offering market since the fund established the first fixed increase fund, Jiutai Ruizhi Fund, on August 14 last year. By the end of last year, the average floating profit of projects invested by the former had reached 94%.

In the opinion of insiders, the proceeds from private placement=discount proceeds+individual stock growth proceeds+market volatility proceeds. This is also the reason why the corresponding stocks usually soar after the listed companies announce the fixed increase. Practice has proved that many fixed price increases in the past have brought about the actual development and growth of listed companies, which is greatly conducive to the promotion of stock prices.

Private placement allows investors to buy good stocks at a discount, but only a few people and large funds can participate. In fact, the players participating in the fixed increase are mainly large institutional investors, with less than 10 investors providing hundreds of millions to billions of funds to purchase new shares issued by listed companies.

The private placement market is a typical institutional investment market. How can ordinary investors participate in private placement? Industry insiders suggest that ordinary investors can participate in private placement through fixed increase products issued by Sunshine Private Placement, Trust, etc., or purchase fixed increase funds issued by public funds, so that ordinary investors have the opportunity to explore the gold fixed increase market.

It is understood that the threshold for traditional fixed increment products is relatively high, with 1 million at every turn. The fixed increase funds issued through the purchase of public funds, such as Jiutai Ruizhi and Jiutai Ruifu, have a threshold as low as 1000 yuan. They are opened regularly every year and will be listed in Shenzhen Stock Exchange within three months of their establishment. (Shangzheng Chen Junling)