The significance of share reform

Water skin

Huaneng reform to open up appreciation space

In many people's concept, share reform is the inevitable way of China's stock market and international integration, because the reform will not only lead to full circulation, but also will lead to the price and international market integration.

It is based on this collective unconsciousness, stock reform in the beginning of the market generally popular index (Information Market forum) will fall to 800 points of understanding.

What is a 800-point concept?

800 points originate from two concepts. One is the concept of ex-right, if the general price is 10:3 bonus shares, then 1100 points of the index after the right is 800 points. Another concept is a-share and H-shares, not coincidentally, the price of a-share and H-shares is almost a few, just 30%, if the price of a-share and H shares, then it means that the Shanghai Composite Index has 30% of the fall space.

However, 800 points is only a collective unconscious, many people do not realize that the stock market price is not a market concept, but focus on the concept, the value of the market depends on the price of blue-chip, it is this difference, share reform not only let the majority of the consciousness of the fall did not achieve, But also through the blue chip in addition to the right to open the appreciation of space. Huaneng International (Information Market Forum) is one of the typical.

Huaneng International's initial share reform was priced at 10:2.8 shares, and after full communication with shareholders, including institutional investors, bonus shares raised the price to 10:3 of the market average. Has exceeded people's expectations on the level of excellent blue-chip prices, measured by the price-earnings ratio, Huaneng International has been below the international level.

Huaneng International at the time of suspension of the price is 6.30 yuan, the possible ex-right price is 4.85 yuan, and Huaneng International current H-share price, although compared with the earlier period has come down, also has 5.15 Hong Kong dollar, this means that after the power of Huaneng International A-shares price will and H-shares appear upside down, upside down will reach about 9.5%. And if Huaneng International's share reform is one months ahead of time, then upside down will reach an astonishing 25%.

Huaneng International is currently China's largest independent power generation listed company. The company now has an interest capacity of 23.32 Million-kilowatt, while the domestic ranking closely followed by the listed company Changjiang Electric Power (Information Market Forum) and the Power (Information Market Forum) The rights and interests of the installed capacity of 6.91 Million-kilowatt and 5.66 Million-kilowatt respectively. As a company listed in New York and Hong Kong and Shanghai, Huaneng International is favored by international and domestic investment institutions because its power plants are mainly located in the economically developed areas of China's southeastern coastal area, and in the latest shareholder rankings, H o r izon A SSE T M an agem en t,in c has 38.31 million shares in circulation The first position of the unit, while K in E tic S-A SSE T M an agem en T in C was ranked fifth in 14.88 million shares, the two asset managers were the H-shares purchased last year through the Hong Kong market. Of course, the real value of Huaneng International is how much, big shareholder Huaneng Group is the clearest. Therefore, with the share reform initiated by the non-negotiable shareholders between the equity restructuring and mergers and acquisitions.

Huaneng Group and Hebei Construction Investment company, Jiangsu Province Investment Management Limited liability company, Fujian Investment Enterprise Group Corporation, Liaoning Energy Investment (group) Limited liability company, Dalian Construction Investment Company, Nantong Investment Management Co., Ltd., Shantou Electric Power Development Co., Ltd., Dandong Energy Investment and Development Center and Shantou Power Development company signed the "Share transfer agreement", the total number of non-tradable shares acquired reached 1.114 billion shares, accounting for 9.24% of the total capital of the company, the price is 4.09 yuan, the use of capital of 4.556 billion yuan. Huaneng International 2005 Three quarter of the end of the net assets of only 3.09 yuan, that is, only the purchase price of legal entity shares of about 30%. This and the majority of legal entities with net assets for the transfer of the price of a sharp contrast, big shareholders so spend all the money to collect shares, can only show that the intrinsic value of the company far more than the price of net assets, large shareholder increase in the company's long-term operation and appreciation of confidence.

Huaneng International's share reform will become a big shareholder increase in shares of opportunity, this is a lot of people imagine the result. After the completion of the acquisition, Huaneng Group has control of 52.02% of the equity, after the share reform still control 50.78% of the equity, it is worth noting that the total share capital of 18.48% of other non-tradable shares of the price is also a unified payment by China, we can regard this as Huaneng group to acquire a portion of other shareholders of the additional conditions. If so, then, the answer is only one, that is, Huaneng international value is worth the large shareholder in the pay for the share reform of the price; if so, we can understand that Huaneng Group's commitment to unlisted shares in 5 years is not rhetoric or whim.

China's 1300 listed companies if there are 10% like Huaneng International, then how to worry about the stability of the market. If there are 20% like Huaneng International, and what worry about the Bull bear battle. If there are 30% like Huaneng International, what worries about new and old cut, share reform success or failure.

In line with international standards is not the purpose of share reform, to restore investor confidence, open the rising space in China's stock market is the pursuit of reform.