66 Index fund passive protective disk green shoe mechanism to secure ABC not break

Agricultural Bank announced last night, its a-share inquiry interval of 2.52 yuan to 2.68 yuan, basically in line with market expectations. Previously, the market was widely expected to set the price of 2.7 yuan near. ABC's H-Share enquiry range was finalized late 23rd this month, with a specific HK $2.88 to HK $3.48.　　After exchange rate conversion, the lower limit of the A-share inquiry interval and the lower bound of H-shares show that AgBank is sticking to the same bottom line for both domestic and overseas funds. 66 Index Fund Passive Protector ABC's IPO was approved by the SFC on 9th this month, and the listing process is advancing rapidly.　　A-share preliminary inquiry has been completed on June 23, the net received 16 times times subscription, the final pricing will be announced on July 8. Because the stock market capital face is tight, before ABC gets the IPO approval, the market analysis is generally worried, in order to free up the funds to purchase the ABC agency may sell the holding stock.　　From 9th this month to yesterday, the Shanghai Composite Index fell by about 1.9%. As an important market for blue-chip stocks, AgBank will be listed in a number of important indicators after a period of time, the relevant index funds will have to buy ABC, objectively constitute the strength of the disk.　　If the share of the Fund at the end of the first quarter is simple, the current 66 index funds are about 310 billion yuan, of which 54 passive index funds are worth about 260 billion yuan and 12 of the Enhanced Index fund is about 50 billion yuan. Public information shows that since the beginning of this year, the Shanghai Stock Exchange IPO on the Internet, the rate of 2.99%.　　The other 4 large commercial banks IPO online check rate is: ICBC 3.28%, BOC 1.94%, CCB 2.47%, the delivery of 1.09%.　　"Green shoes" to secure not "break" ABC's A-share issue introduced the "green shoe" mechanism, to secure not "break". According to the mechanism, ABC plans to issue no more than 22.235 billion shares, the main underwriter of a A-share can offer investors an excess of 15% of the initial distribution, that is, up to 3.336 billion shares in excess placements.　　Within 30th after AgBank's IPO, the main underwriter can buy the ABC A shares directly from the two level market, and distribute the IPO price to the investors who subscribe to the oversubscribed portion, forming a buying power in the level two market, maintaining the stability of AgBank's stock at the initial stage of the IPO. The announcement showed that the Agricultural bank a share of the strategic placing part and the network under the issue of a lock period, the market can not be sold in the short term.　　ABC a A-share listing, only the online distribution part in the short term can be sold freely, up to about 7.2 billion shares, these stocks will constitute a "break" the reality of pressure. The "green shoe" mechanism is ready for "pockets" to catch the Sell-off after the IPO – the main underwriter can buy up to 3.336 billion shares directly from the two level market within 30th after AgBank's IPO.　　Earlier, AgBank deputy Governor Pan has said that after the listing within 30th as long as the turnover rate is below 50%, can guarantee not "break". International agencies have won most H-Shares in the current plan to issue no more than 29.224 billion H shares, and 95% are expected to be issued in international placements, most of the placements to international institutional investors, up to 40% placements to cornerstone investors. At present, ABC has signed a contract with a number of cornerstone investors, the Qatar Investment Authority to subscribe to 2.8 billion U.S. dollars, the Kuwait Investment Authority to subscribe to 800 million U.S. dollars, Standard Chartered Bank to subscribe to 500 million U.S. dollars, ABN AMRO to subscribe to 250 million U.S. dollars, Singapore Temasek proposed to subscribe for 200 million U.S. dollars.　　In addition, Li Ka-shing, Shau and Tung will also be heavily subscribed. AgBank did not introduce foreign strategic investors until it was listed, and foreign institutions can only buy new shares at the same price.　　Before the listing of 4 banks, the foreign institutions have bought a lot of shares at prices below the IPO price, which has sparked controversy over the "state-owned bank sale". Morning News reporter Li Joe both the buyer and the seller are in the build-up. AgBank is selling expensive or cheap. Li Joe and the other 4 large state-owned commercial banks, AgBank's IPO market environment is the worst. Internationally, the world has just experienced a once-in-a-century financial crisis, the European debt crisis has not been settled, the International investment Agency, the vitality of the big injury, a lot of billions of of dollars in the grand pomp no longer. At home, the economic macro-control situation is complex, the banking industry is a bad one, while the real estate control to form the risk of non-performing loans, while the local government huge financing buried "bombs."　　At the same time, domestic and foreign stock market downturn, investors underpaid. AgBank is an important state-owned asset. From the standpoint of ABC and underwriter, since the IPO cannot be postponed, it is only possible to sell the new shares more expensive. From the standpoint of investors, especially institutional investors, it is of course hoped that AgBank will sell as cheap as possible and make sure that the new shares are profitable.　　So, a vigorous game staged. Compared with other large state-owned commercial banks, AgBank's fundamentals are really poor, which is an important bargaining chip for the buyer. Some foreign media exaggerated, the title of China's worst bank to plan the world's largest IPO, is nothing more than a "bargain" stance on behalf of international funds. As the seller, AgBank and the underwriting group stressed the growth of the company.　　The domestic media of the Agricultural Bank of China is optimistic that the fundamentals of the industry, China and the mainland are not as good as AgBank's, and the future of the company is worth looking forward to. The attitude of the buyer and the seller is well worth pondering. The buyer said to reporters: "We cannot sell too high, 2.5 yuan per share is appropriate." "There are private placement even said that ABC is too rubbish, we do not consider."　　On the side of the seller, the bank's study of Guotai, Citic and Galaxy Securities, a research report by AgBank, is not low, the highest or even more than 4 trillion yuan, which seems a bit outrageous for the neutral agency. As the saying goes, the buttocks decide the head. Both buyers and sellers of AgBank's new shares are using public opinion to make their own gains, and their rhetoric is aimed at maximizing their own interests. Ordinary investors need to pay attention to "instead, Shinze", lest become the victim of others game.