The secret of hot-holding pledge-repurchase plot

Pledge repurchase is becoming the first choice for shareholder financing of listed companies. The business is hot, a person in the Yangtze River Securities, and pledged to banks, trust companies compared to the pledge-type repurchase business advantages are obvious: first, the broker can provide a higher discount, and do not refuse to restricted shares; second, the mortgage repurchase procedures are relatively simple, the processing process only three days, and can be "along with the loan." However, the business also has a hidden danger: to provide shareholders with financing facilities, but also stimulated its gambling, once combined with external funds, it is easy to breed insider trading.

How to make the restricted stock in the hand become realizable? Many of the company's major shareholders chose the pledge-type repurchase financing channel.

Shanghai newspaper reporters comb found that the big shareholder pledge-type repurchase, and the two-level market is also highly correlated. The logic is that the nature of the pledge repurchase financing is a lever operation, which guarantees the value of the collateral does not shrink, and often has a stronger power to maintain the stock price. From the two-level market, the company, such as the big shareholder of Song Tak shares, surplus micro and other large-scale pledge financing, has a good performance. And some companies involved in restructuring, because their major shareholders need to be financed through the pledge repurchase funds to participate in the financing, the equivalent of the existing shares in the pledge financing after the increase, there is a more consistent interest demand.

"High leverage" of large shareholders

September 20, Surplus micro-disclosure, the company's major shareholder Shanghai Ying Fang Microelectronics Technology Co., Ltd. (referred to as "surplus microelectronics") 28 million shares of the company's shares pledged to orient Securities, the period of 1093 days. The previous day, the company's close price of 13.03 yuan, such as the current market 50 percent calculation, surplus microelectronics about 180 million yuan to finance.

This is the second time that the surplus microelectronics through equity financing. August 20, the surplus micro has disclosed that the large shareholder surplus microelectronics will hold 85 million shares pledged to the letter Tatsu Securities to deal with the stock pledge-type repurchase business, the pledge period of 36 months. 50 percent of the previous day's closing price calculates that the surplus microelectronics can raise about 460 million yuan.

Back to the public information, July 15 this year, S shun yuan to complete the share reform, Ying Fang Microelectronics to the listed company 200 million Yuan cash and Shanghai Ying Fang Microelectronics Co., Ltd. 99.99% equity of the price, the listed companies to increase the accumulation of 212 million shares. By the end of 2013, the assets of Shanghai surplus micro total assets of 189 million yuan, the total shareholder equity of 112 million yuan, 2013 operating income of 166 million yuan, net profit of 11.82 million yuan.

A company with a total assets of less than $200 million, plus 200 million yuan in cash, can easily get more than $600 million in financing after switching to shares in listed companies. After easy replenishment of the previously injected 200 million yuan of cash, surplus microelectronics also received sufficient development funds. This is really a wonderful story. Recently, the company another shareholding more than 5% of the shareholders shun Yuan investment also handled the stock pledge-type repurchase business.

Back to see the performance of shares in the stock market after the return of the lowest price of 8 yuan, within two months the company's share price rose about 50%. "It's hard to say that the company's share price has risen because of big shareholder pledges, but this three-year lock will certainly boost confidence in the two-tier market." "The essence of big shareholder's strong capital operation is still a highly leveraged amplification of future performance, which has been captured by the two-level market and investors have opted to follow," a broker analyst says.

Financing for the reorganization of "blood supply"

The majority shareholder of the song-Tak shares has another. According to the company's announcement, to October 11, 2013, the company's large shareholder, Song Tak Industrial has its holdings of 18.759 million shares of the company's shares in Guotai Junan to deal with the stock pledge-type repurchase business, after the share price rose, part of the pledge shares after the release, and immediately transferred to handle the financing of the coupon business.

In June this year, the company suspended the restructuring of assets, until the end of August to disclose the reorganization plan to buy Daewoo carved, after the company's share price soared. September 20, the company disclosed that the original pledge to Guotai Junan 2.78 million shares of the lifting pledge, transferred to Guotai Junan Zhongshan Three road sales department customer credit transactions secured securities accounts.

According to the regulations of the regulatory department, pledge repurchase business agreement, in the proportion of performance protection exceeds the agreed value, can be partially lifted pledge. Take Suan Dok shares big shareholder Pine Tak Industrial, for example, a broker to reporters analysis, its pre-pledge-type repurchase business, from the broker to the funds can be freely controlled, the securities firm almost no restrictions, after the transfer into the margin trading shares, it can be used as collateral, financing for other stocks or equity-like assets investment.

Back to check the announcement, in the song Tak share acquisition Daewoo carved plan, to the company's actual control of one of the Guo Jingsong or its controlled enterprises to issue 21.8827 million shares to raise supporting funds, which means that the Pine de industry does have financial needs. The anatomy logic, the actual control of the song Tak shares in the pledge-type repurchase obtained funds, participation in the listed company's overweight, which is also a highly leveraged operation, the two-tier market will naturally not let go. Since this year, the shares have risen 192%.

The case for the shares has been widely accepted by brokers and listed companies. According to the reporter does not fully statistics, there are a number of recent suspension planning major issues listed companies, its main shareholders are carrying out pledge-type repurchase business, such as the South heavy industry, Heng Tian Swan, Pingtan development, Qian Yuan medicine. It is not surprising that some shareholders are raising funds for the subsequent capital operations of listed companies.

To generate speculation about stock price dynamics

In fact, pledge repurchase is becoming the first choice of shareholder financing in listed companies. According to the report of the Shanghai newspaper, only one week from September 15 to September 20, that is, 33 companies disclosed shareholders to carry out the stock rights pledge repurchase transaction announcement, while only 3 companies disclosed shareholders pledged shares to the bank, 1 companies disclosed shareholders pledged shares to the trust company. There are companies such as hundred Chuan shares disclosed, the controlling shareholder will originally pledge in the bank's shares, the understanding of the charge to the broker to carry out the pledge-type repurchase transactions.

Compared with the pledge to the banks and trust companies, the securities firm's pledge-type repurchase business has obvious advantages. "A member of the Yangtze River Securities, one is that brokers can provide higher discount, in the case of circulating shares, the bank generally in accordance with the value of the mortgage shares of 30 percent-40 percent loans, brokers are generally 50 percent, some blue-chip companies can even reach 70 percent, in addition to the bank generally do not accept the non-negotiable shares of the pledge loans, the broker does not refuse Secondly, as a brokerage of the innovation business, pledge-type repurchase procedures are relatively simple, the entire processing process total only three days, and can be "with the loan", relatively speaking, the bank's pledge-type loans have more cumbersome procedures.

But there are two sides to everything. Pledge-type repurchase business blowout at the same time, there are also industry personnel to see the hidden trouble, that is, to provide shareholders with financing facilities, but also stimulated its gambling, once combined with external funds, easy to breed insider trading.

Brokers analysis, through the large shareholder's pledge financing behavior to select stocks, before the market has had a case, such as a listed company large shareholder will be held to the bank, because of its financing costs can be inferred, once the stock price fell to a certain position, the market is expected to be listed companies or large shareholders will be able to carry out maintenance, To ensure the smooth promotion of financing business. Compared with the Bank pledge financing, the pledge repurchase is the innovation business which the securities firm pushes, in providing the lower threshold and more convenient at the same time, the financing behavior is also increasing the sensitivity of the stock price, the main shareholder also has the stronger power to maintain the stock price.

These people pointed out that as the main source of the pledge repurchase business is a brokerage (or brokerage products), once the business with other securities brokerage business such as self-employed, or combined with the market capitalization of listed companies, the risk of its alleged insider trading will increase greatly.

The secret of hot-holding pledge-repurchase plot