Tuesday, November 29, 2011

individual issue price-earnings ratio high became the focus of new shares. A few days ago

129668631870781250_70Editor's Note: in order to promote the healthy and steady development of China capital market, the Commission recently launched intensive six initiatives. This special launch series, each of these initiatives conducted in-depth analysis and interpretation. 22nd, 23rd and 24th respectively launched the bond market calling for chess policies are still needed at high speed, and the prevention and control of insider trading of capital market from the source "rodent" action step by stepUpgrade and the chaos-ridden under the State Council over more than 300 trading venues will straighten up, today published the change higher earnings to issue new shares of correlation analysis reports. High price-earnings ratio of new shares issued, why not? Has been discussed in the industry, regulators have been promoting. Recently, the regulators are clear means of gradually changing high earnings sharesVote situation. So, how can this situation to crack? New stock issue "three highs" is complete with the introduction of initiatives to be changed? ����Everything is looking forward to. Since its launch in June 2009 in Shanghai and Shenzhen stock markets IPO deal, accelerated the pace of marketization of Chinese securities market diablo 3 power leveling, however, from the last two years issued new stock market situation, new listingsExposed serious problems. IPO has become high price issue, high earnings release, superb raised the issue of "three high" release. Particularly prominent are second board companies. ����According to statistics, the current gem company 275, the average price of about $ 35, nearly 68 times times issued on average earnings, average more raised than to 200%. A few days ago, the Commission launched sixImportant regulatory reform measures, which made it clear that, by means of gradually changing situation of high earnings shares. SFC official said, "as a regulator, we are not giving reasonable standards for price/earnings ratio. ����But the next Commission will continue efforts to increase the intensity of reforming and perfecting the issuing regulatory ". "Three high" being blamed for a long time, and new shares issued"Three high" was criticized by the vast number of investors. ����However, recently, the IPO price generally lower, individual issue price-earnings ratio high became the focus of new shares. A few days ago, published in traditional media (601,999) a IPO--Phoenix Media announced the industry's biggest success rate and placement results under the network on the Internet, issued as high as 63.4 times times forward earnings,Facing the stock higher issue price/earnings ratio, agency minimum price only $ 5.2/unit, this 1 time difference with the highest bid $ 10.88/unit more than doubled. Prior to this, Phoenix Media findings of a preliminary inquiry, this issue of the issue of the Phoenix Media �� 8.8 price range is $ 8/share/unit (including the lower and upper). This corresponds to the price range 2010Prior to release level is doubled �� 46.11 times times forward earnings, after the release of earnings doubled �� 57.63 times times. Investor Roadshow platform directly questioning its price/earnings ratio is high. In response, the Phoenix Media Chairman Chen Haiyan says, if calculated according to the sustained viability of standards to the issue corresponds to 2010 year earnings level issue25.23 times �� three times before, after the release of doubled �� 31.54 times times 2011 earnings growth on the basis of further consideration company, the company of the a shares issue compared to comparable company earnings and major a-share, it is more reasonable. If Phoenix media in the whole publishing's leading position in the field, Phoenix mediaDetermination of the offering price is for investors to reserve some room. However, prior to this, shenyin wanguo analysis report, 11, 12, 13 is fully diluted EPS of $ 0.28 and $ 0.33, $ 0.36, reasonable valuations $ 6.44 per cent. Combining similar valuations of listed companies, as well as the current market environment, 11 2PE 3-26 times times, the corresponding interval reasonable valuation $ 6.44 �C $. ����China Securities analyst Lin Hu Yu said that taking into account the price of more than 60 times the Phoenix Media PE, it is recommended that the "Beware of the risk of break, do not purchase". ����In addition, a recent listing of new shares is due to higher pricing very concerned about. On November 22, Dominion optical(002632), listed on the Shenzhen small and issuing valuation 67.65 times times, would become the first new shares with the highest earnings since November. ����Listing on the six months in small and new shares, second only to the April Understanding power () 002576 times issued earnings was more prominent. However diablo 3 gold, Dominion optical debut to beat 20% upSite on the day at $ 28.8 opened smoothly after shock, closing $ 28.76, exchange rate up to 88.63%. ����2011 three quarterly reports shows that the company's main revenue increased by 40%, net profit growth of up to 181%, diluted earnings per share of $ 0.544, researchers believe that dynamic watch company valuations are not too high. It was Shenzhen Stock ExchangeResearch on financial innovation lab, October 30, 2009, small and a total of 528 new listings and gem listed, investors to buy shares on the first day of 5th loss of 61.23%, particularly since the beginning of this year, in Shenzhen a shares break phenomenon not uncommon over 70% shares have fallen below issue price. "Three-high"Cause diverse new shares" three high "release was plagued in recent years priority issues for the development of China's stock markets. It not only severely overdrawn on shares in the secondary market value of investments, greatly increasing the risk of investment. ����Many issuers raise funds ultimately can only be tied up in huge Super Bank, resulting in a huge waste of resources. The reason, analysts say, resulting in highPrice issue, there are many reasons to raise more funds, existing distribution system is not perfect, the market mechanism is not perfect, and investment culture and atmosphere is not reason, do not attach importance to risk revealing, blind hype has a larger relationship. And, for a long time, the a-share markets, "every new rose", therefore, we are "every new play", supply and demand leads to higher issue price of new shares, or high cityFull rate and high proportion of Super-raising phenomena occur. In addition, the Investment Bank's IPO valuation report is often higher than the final offer price, even in the worst times, over the final pricing more than 1 time times the valuation report and was not alone. This further led to the inquiry does not trust relationship between agencies and investment banks, inquiry agencies offer also tended to be irrational State, the impact of the capital marketHealthy development. ����And its ultimate result, investment banks lost their authority and influence of research on valuation, when the market is hype atmosphere lost control. ����However, the British Securities Institute Director Li Daxiao also said that this is a product of China towards market-oriented pricing of securities market, cannot be avoided. Li Daxiao believes that compared to mature markets, the a-share markets areStart of a non-market-oriented products, immediately a full market release might have unforeseen consequences. ����Progressive realization of market-oriented, progressive reform is the best choice. It is understood that in the mature markets, secondary market pricing is a two-way trade system, and even naked short selling, stock market policy did not favour either, any company dare to unscrupulously pricingBecause a large number of reverse transactions and arbitrage disks poured out of at any time. Market-oriented pricing, market-oriented release, Enterprise IPO pricing will be free to, as long as people buy. High tide because of too high a price in the market attracts a large number of new share issues, market downturn as shares was too low when few companies are willing to go public. ����However, subsequent financing very liberal. IPO in China have leftOn the way to market, while on the way there yet to be room for improvement and perfection, General also are able to objectively reflect the prevailing relationship between supply and demand and of the corresponding stock market valuations. ����As the new share issue of institutional reforms, gem IPO pricing starting rational return. Data show that since the beginning of this year, the gem IPO price/earnings ratio "byQuarter "gem release earnings is clearly downward trend. The three quarter 2011 gem release earnings declining 73.88, 44.18, times. ����Among them, issued in June of this year listed Masson technology (300,237) release earnings the lowest 18.12 times. But insiders said the IPOFall in the profit rate, mostly because of gloomy market and fund this year under the environment of surface tension, if market conditions improve, does not rule out new share price-earnings ratio to rise again, securities and Futures Commission for the new shares higher earnings results also continue to watch the new deal. Address the high price-earnings ratio required starting with high price-earnings ratio for new shares issued, regulators continue to take measures. CardRegulator responsible person stressed that reform issue regulatory systems, requires sustained effort. In recent years, the Securities and Futures Commission regulating the behavior of inquiries and pricing programs, on the one hand, on the other hand strengthen market discipline mechanisms. Issuing auditing, in addition to constantly raise the level of auditing, strengthening agency responsibilities, establish intermediary asked the nuclear programs, enhanced on-site examination; release link discovery issuesAnd intensify efforts to investigate and; supervision on release process, increasing risk, efforts to increase transparency, improve predictability and so on. Industry sources said, to further changes of high earnings shares should be multifaceted approach. In the process of inquiry, to strengthen inquiry quotation of market supervision, to establish a reward the good and fine [punish] the bad control mechanism, eliminating price qualityBad request object; we should further improve the pricing mechanism, improving small and medium-sized investors to say in the valuations process. ����Many industry experts and scholars are also given his own proposal. Li Daxiao, available from the following address. First of all, you can control the total, dispersing listed for centralized listing, that is, from eating less meals to set meals, thusControl the listing price of new shares can be achieved. At the same time the number of more than a, investors naturally there is not much interested in going to the hype. ����Followed by the first release, delayed for several months or longer listed after, with increased playing time for new risks, control its hype, at the same time can also have plenty of time to recognize the investment value of the company. Wuhan University of technology, finance and securities research, Director of Dong Dengxin recommendations, IPO Netherlands auction pricing, that is, direct quotes by the investors in listed companies, and according to raise amount of shares issued and to determine exactly to what they will release, quoting higher than the final pricing of access to shares, corresponding to the high bidders get shares of market principles. ����Avoid stock boom collapsed in the first trades. WestSouth securities (600,369), Deputy Director of the Institute, the Chief Economist Wang Jianhui suggested that on the need for restraining the IPO "three high" in the system. ����Proposals of intermediaries such as inquiry agencies, securities underwriting agencies hard constraints, so that they can't quote, high price. Investment bankers believe that solving the IPO higher earnings problems, banks have not pushedDischarging responsibilities. Recommendations on the IPO risk, banks should shoulder more responsibility to guide institutional investors offer to give a more rational. Currently depressed market environment for banks provides a very good reflection on the opportunity to strengthen industry self-regulation, perfect IPO issue is imperative to link risk.

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