Since the beginning of this year, the enthusiasm of public equity institutions to participate in private placement (hereinafter referred to as "private placement") projects in the A-share market has continued to rise. According to the latest statistics from the Public Offering Network, as of March 18, the products of 17 public offering institutions have participated in the private placement of 26 A-share listed companies during the year, with a total allocation amount of 11.493 billion yuan. Calculated based on the closing price on March 18, the total floating profit of public equity institutions participating in the private placement projects was approximately 2.184 billion yuan, and the overall floating profit ratio (floating profit amount / allocated amount) was 19.00%, demonstrating strong investment income capabilities.
Talking about why private placement projects in the A-share market attract public institutions, Li Chunyu, FOF fund manager of Shenzhen Rongzhi Private Securities Investment Fund Management Co., Ltd., told a reporter from Securities Daily that public funds actively participate in private placements. First, they benefit from the continuous optimization of the policy environment, which improves the transparency and asset quality of the private placement market and enhances its attractiveness as a long-term allocation asset. Second, current private placement projects are mostly concentrated in high-prosperity areas that are in line with national strategies, providing public institutions with opportunities to lay out core tracks at reasonable costs. Third, in the context of increasing market volatility, the "price safety cushion" effect brought by fixed-increase projects also helps smooth net worth fluctuations.
Judging from the current performance of individual stocks, as of March 18, more than 90% of the private placement projects participated by public equity institutions were in a floating profit state. Among them, Kexiang shares in the electronics industry performed the most outstandingly. The proportion of public institutions participating in fixed placement and floating profits was as high as 170.73%. Nord Fund and Cinda Australia and Asia Fund received allocation amounts of 57.4957 million yuan and 17.22 million yuan respectively. Honghe Technology in the building materials industry followed closely behind. Caitong Fund and Nord Fund participated in the private placement and received a total allocation amount of more than 270 million yuan, with a floating profit ratio of 73.21%. In addition, the market performance of stocks such as Allied, Changhua Chemical, Zhongbei Communications, Lyle Technology and Beite Technology has brought floating profit ratios of more than 30% to public equity institutions participating in the private placement, highlighting the high-yield potential of the private placement market.
From the perspective of industry distribution, the private placement projects participated by public equity institutions cover 12 Shenwan first-level industries. Among them, the automotive industry is the most popular. Public equity institutions participated in the private placement of four stocks, including Beite Technology, Fengshen, BAIC Blue Valley and JAC Automobile, with a total allocation amount of 3.489 billion yuan. In addition, public equity institutions participated in the private placement of individual stocks in industries such as electric power equipment and basic chemicals and received the largest amount of allocations. From the perspective of profitability, 11 industry private placement projects achieved an overall floating profit, among which the electronics industry's fixed placement projects had the highest overall floating profit ratio, reaching 56.84%; the building materials and communications industries' fixed placement projects' overall floating profits exceeded 45%.
In this regard, Chen Xingwen, chief strategy officer of Zhuhai Kurosaki Capital Investment Management Partnership (Limited Partnership), analyzed to a reporter from Securities Daily that this year's private placement of public funds will focus on sectors such as automobiles and power equipment, which is a choice based on the resonance of multiple strategic logics. Currently, with the advantages of a complete new energy industry chain, our country is accelerating its transformation into an "intelligent manufacturing power", and public fundraising institutions have keenly captured this opportunity. At the same time, private placement projects have shifted from “discount arbitrage” to “premium financing”, reflecting that the investment logic of public equity institutions has shifted from institutional dividends to value cultivation. In addition, the automobile and power equipment sectors carry the core connotation of new productivity, and related private placement projects accurately cut into key nodes of industrial upgrading. From a global perspective, China's manufacturing industry has advantages in technology, cost, scale and other aspects. Public equity institutions deploy relevant sectors through private placement, which is essentially sharing the dividends of the era of improved global competitiveness of China's manufacturing industry. Therefore, the layout of public equity institutions is not a short-term game, but a long-term strategic configuration based on industry trends, policy orientation and global competitiveness.
In addition, among the 17 public-funded institutions participating in the private placement project, 7 institutions received allocation amounts exceeding 100 million yuan, and 3 of them exceeded 3 billion yuan. E Fund participated in 4 private placement projects, with a total allocation amount of 3.974 billion yuan; Caitong Fund participated in 25 private placement projects, with a total allocation amount of 3.277 billion yuan; Nord Fund participated in 24 private placement projects, with a total allocation amount of 3.261 billion yuan.
