A reporter from China Securities News learned from the Beijing Stock Exchange on July 13 that since the beginning of this year, the Beijing Stock Exchange has completed public offerings and subscriptions for 24 companies, raising a total of 4.004 billion yuan, with an average of 167 million yuan per company.
According to industry insiders, the innovation and vitality are abundant, and the market financing function of the Beijing Stock Exchange will continue to improve. The trading activity of the Beijing Stock Exchange is expected to be further enhanced, financing tools will be more fully utilized, and the investor structure will continue to improve.
Investors actively participate in the subscription of new shares
The average number of valid subscribers for the online issuance of the above-mentioned 24 companies on the Beijing Stock Exchange was 211,800, with an average subscription multiple of 393.81 times and an average placement ratio of 0.53%.
Among them, since July, the Beijing Stock Exchange has disclosed the issuance results of 4 new shares, including Chenguang Cable, Kerun Intelligent Control, Patel, and Huifeng Diamond, which has set a record for the review speed of the Beijing Stock Exchange. The average number of valid subscribers for the online issuance of the four new shares was 150,200, the average online subscription multiple was 174.67 times, and the average online placement ratio was 0.94%.
Institutional investors have increased their participation in the public offering of the Beijing Stock Exchange. Since the beginning of this year, public funds and securities companies have actively participated in the strategic placement of corporate public offerings on the Beijing Stock Exchange, and 9 companies have received strategic investment from public funds. Among them, more than 4 companies participated in the strategic placement of Beijing Stock Exchange-themed funds managed by public funds such as China Universal, China Asset Management, Harvest Fund, and China Southern Asset Management.
A reporter from China Securities Journal learned that as of the end of June, the number of qualified investors in the Beijing Stock Exchange had exceeded 5 million, an increase of 1 million from the opening of the market. A total of more than 500 public funds have participated in the investment of the Beijing Stock Exchange, and the market value of the positions has increased steadily.
The participation of funds from IPOs of the Beijing Stock Exchange is more active than that of the Hong Kong stock market. As of July 8, a total of 25 companies had IPOs and raised funds in Hong Kong stocks this year. The average number of investors who subscribed for online public offerings was 8,732, of which only 5 companies had more than 10,000 subscriptions.
The overall quality of the company is good
The fundamentals of companies listed on the Beijing Stock Exchange are good. As of the end of June, there were a total of 100 companies listed on the Beijing Stock Exchange, of which 22 were national-level specialized, specialized, and new “little giants”. The 100 companies listed on the Beijing Stock Exchange will achieve a total operating income of 70.466 billion yuan in 2021, a year-on-year increase of 31.04%; the net profit attributable to the parent company will be 7.625 billion yuan, a year-on-year increase of 22.81%.
The business performance of the companies under review by the Beijing Stock Exchange is not bad. As of July 8, there were 136 companies under review by the Beijing Stock Exchange, covering 9 industries and 31 major industries. The average operating income and average net profit growth of these companies in the most recent year were both above 30%, the weighted average return on equity reached 20.73%, and the median net profit was 44.4402 million yuan.
The driving force of innovation has been significantly enhanced. The total R&D expenditure of the above-mentioned 100 companies listed on the Beijing Stock Exchange in 2021 will reach 3.339 billion yuan, and the average R&D intensity will be 6.87%, which is 4.78 times the average of enterprises above designated size. The average R&D investment of the above-mentioned 136 companies under review by the Beijing Stock Exchange was 26.9803 million yuan, and the average R&D intensity was 5.06%.
Zhu Haibin, assistant general manager of Essence Securities Research Center, said that the stock exchange of listed companies on the Beijing Stock Exchange represents the market positioning of the Beijing Stock Exchange. The Beijing Stock Exchange has formed five industrial clusters of high-end equipment manufacturing, pharmaceutical biology, TMT, new materials, and new consumption.
Liquidity will further improve
In the past period of time, there have been many discussions in the market regarding the liquidity and investment value of the North Exchange.
A person who has been following the market of the Beijing Stock Exchange for a long time said that the listed companies of the Beijing Stock Exchange are mainly small and medium-sized enterprises, and the scale of circulation is small, and a large number of original shareholders may not be willing to sell even following the ban is lifted. Investors are mainly qualified individual investors and institutional investors, and the holding period is relatively long. This market feature, which is dominated by small and medium-sized enterprises and qualified investors, determines that the market liquidity level has its own characteristics.
Some listed companies with high market recognition on the Beijing Stock Exchange have better performance in issue price and liquidity level, high-quality companies can obtain effective value discovery, and the transaction pricing function of the market is not weak.
From a long-term perspective, the Beijing Stock Exchange is still in its infancy, the market function needs to be continuously improved, and the market recognition will take a certain period of time to accumulate. With the further increase in the number of listed companies, the further enrichment of the structure, and the continuous enrichment and improvement of market trading mechanisms and tools, the Beijing Stock Exchange will gradually gather a group of cornerstone investors, and the basic conditions for liquidity will be further improved.
Tian Lihui, Dean of Nankai University’s Financial Development Research Institute, believes that to achieve high-quality development of the Beijing Stock Exchange, it is necessary to further expand the scale of listed companies, improve the breadth, breadth and depth of the market, and implement more targeted supervision and governance.
Zhu Haibin said that with the overall accelerated development of the North Exchange market, the follow-up North Exchange Index and North Exchange ETF funds are expected to land.
(Article source: China Securities Journal)
(Editor in charge: Cai Qing)