Interpretation of ABC's a-Share online rate

Network economic channel: July 8, Agricultural Bank of China announced the initial public offering a-share pricing and online check rate.　　Agricultural Bank of the initial issuance scale of 22,235,294,000 shares, and awarded a-share of the main underwriters do not exceed the initial distribution of 15% of the Excess allocation option (or "green shoes"), if a A-share green shoes in full exercise, then a-share issue of the total number of shares will expand to 25,570,588,000 shares. The issue is directed to strategic investors placing (hereinafter referred to as "strategic placement"), the net to the request for quotation (hereinafter referred to as "under the net Issue") and online funds purchase (hereinafter referred to as "online distribution") combined with the way. As ABC's online distribution is fully subscribed, and the initial distribution ratio under the net is lower than the initial rate of online distribution, triggering the callback mechanism from the Internet to the net. After the implementation of the callback mechanism, the strategic placement of 10,228,235,000 shares, accounting for the distribution after the scale of the proportion of 40%, under the network issued 5,032,028,000 shares, the ratio of 19.7%, online distribution 10,310,325,000 shares, accounting for 40.3%.　　triggered by the Internet to the next call can not explain the online issue of the investor subscription is not enthusiastic, in the previous Everbright Bank and China's construction of the issue has also appeared in the same situation. It is understood that the online distribution of effective number of users for 1,256,290 households, the effective purchase of shares of 110,951,973,000 shares, frozen funds of about 300 billion yuan.　　NET final placing ratio is 9.2926027%, online final check rate is 9.29260176%. AgBank's initial public offering, though high, has objective reasons that cannot change AgBank's long-term investment value. One is that the current market liquidity is scarce, the first-tier market funds are limited, affecting the purchase of ABC. Second, ABC's issue just in the A-share market volatility more intense period. The Shanghai Composite Index slid to about 29.85% per cent from the highest 3,306.75 in the year to July 8, to a low of about 2,319, and the relative downturn in the market has partly affected investor confidence. Third, before the launch of ABC, there was a "break" in the IPO. such as the July 5 listing of the Tangshan port in the initial public offering of investors more enthusiastic, online public offering rate is only 1.13%, but the first day of the listing is below the IPO price, closed at 7.88 yuan, below the issue price of 8.20 yuan 3.9%. AgBank's public offering followed the listing date of the port of Tangshan, the investor purchase of Agricultural Bank of the confidence caused a certain impact; four is the large scale of agricultural bank, in accordance with the final price of a shares of 2.68 yuan/shares and H-shares final pricing of 3.20 yuan/share calculation, if the agricultural Bank of excess placement options in full exercise, raise capital scale will reach 1, 72.2 billion yuan, more than ICBC's IPO financing scale. Large scale of financing is also caused by the rate ofHigher important reason.　　AgBank, as one of the largest state-owned commercial banks, has the broadest operating network across urban and rural areas, and the broadest customer base, is the biggest beneficiary of China's next round of economic growth, and will bring substantial long-term returns to investors. (Responsible editor: Cao Hua)