After ZTE, the Sanqi Mutual Entertainment also played.ETFRedeem. ZTE went down one by one, and the market value of nearly one billion yuan on the second day was gone; the Sanqi mutual entertainment went down one by one, and the company changed hands. On March 14, Sanqi Mutual Entertainment's share price fell 9.84%.
March 14th, Sanqi Mutual Entertainment LatestannouncementSaid that holding more than 5%shareholderHuitianfu FundThe reduction was completed on the 14th. The reduction of holdings through the centralized bidding method, reducing the holding of Sanqi mutual entertainment does not exceed 2,214,870 shares, not exceeding 1% of the company's total share capital.
Zhongzheng Jun also learned that there wasfund companyReceived advice from other listed company shareholders on ETF redemption. What is the ETF exchange? Zhongzheng Jun feels it is time to introduce the ETF exchange game.
March 13th, A-share listed game companySanqi Mutual EntertainmentThe announcement stated that “the company received Wu Xushun, one of the controlling shareholders and actual controllers, to participate in the Yinhua MSCI China A-Share Trading Open Index.Stock investmentfund(hereinafter referred to as "Yinhua MSCI China A-Share ETF") offline stock subscription, with 21.2 million shares directly purchased Yinhua MSCI China ETF share, subscribed for the fund share corresponding to the 21.2 million stock value. ”
It is not surprising that a listed company buys a fund. However, Wu Xushun, who is a member of the Sanqi Mutual Entertainment, has an order, and the company is easy to change. How did this happen?
Wu Xushun exchanged the shares of Yinhua MSCI China ETF with 21.2 million shares of Sanqi Mutual Entertainment. After the completion of the redemption,Wu Xushun’s shareholding ratio decreased from 6.12% to 5.12%. Wu Xushun, the former largest shareholder, and Wu Shihong, Wu Weidong and Wu Weidong’s total shareholding ratio of the Wu family were reduced from 19.27% to 18.27%. The current second largest share of Li Weiwei holds 19% of the shares.Li Weiwei’s shareholding ratio surpassed the Wu family and became the largest shareholder.
For Li Weiwei: The major shareholder went out to buy something and returned to become the largest shareholder. However, on December 8, 2018, Sanqi Mutual Entertainment announced that it had received the resignation report submitted by the chairman of the company, Wu Weidong. After resigning, he no longer held any position and showed signs of leaving.
On March 13, after the announcement of the repurchase announcement by Sanqi Mutual Entertainment, the stock price plummeted. On March 14, Sanqi Mutual Entertainment closed down 9.84%, and the intraday price fell more than 9.95%.After ZTE announced the repurchase announcement, the market value of the next day shrank by nearly 10 billion yuan.
Zhongzhengjun consulted some professionals to explain in detail the ETF's "advanced gameplay".
What is an ETF redemption?
During the ETF's issuance period, investors can exchange ETF fund share ETFs with single or multiple component bank shares. After the listing, investors can sell fund shares in the secondary market. It is worth noting thatThe issue period is the only time to redeem the ETF.After the issue period, investors must use a basket of stocks to purchase ETF shares.This explains why ZTE and Sanqi Entertainment are choosing ETFs that are being issued rather than other existing ETFs that are larger and more liquid. In addition, due toETFThe subscription threshold for the issue period is generally higher than the subscription period after the establishment.Lower threshold,Ordinary investors can also participate in ETF redemption.
The motives for the major shareholder ETF swap may include reducing the disruption caused by the reduction of the market, saving transaction costs, and trading stocks.
Reduce market disruption caused by reduction
Introduced by the head of a large fund ETF,ETF redemption has less impact on the market than direct reduction. When the ETF is redeemed, the shareholder issues a renewed announcement. Since the redemption announcement seems to be an investment behavior, the psychological impact on investors is not as direct as the reduction. In addition, when shareholders gradually sell ETFs in the secondary market, they do not need to be announced every time. However, from the perspective of the stock price trend after the repurchase of ZTE and Sanqi Mutual Entertainment, the impact is still small.
Save on transaction costs
ETF veteran Zhang Yijun wrote that ETFs can save transaction costs compared to selling stocks. First of all, you can save a stamp duty, ETF transactions do not have to pay unilateral stamp duty.
Secondly, although the ETF redemption has a replacement rate, the cost is very low.
Again, sell ETFs, manyBrokerThe commission rate offered is more favorable than the stock commission.
Overall,If the share of the redemption is large, the transaction fee is lower than the sale of the stock.. In addition to the major shareholders of listed companies, many senior ETF players also participate in ETF exchange.
Does not rule out the need to spread risk
Another possible motivation for ETF redemption is thatSwap a stock into a basket of stocks for the sake of risk.
Talking about the repurchase of ZTE ETF, a large fund company ETF said,ZTE is not excluded from the risk of diversification, the exchange of its own stocks into a basket of stocks.
Shanghai-Shenzhen Morgan Stanley strategists Laura Wang, Jonathan Garner and Corey Ng are at the latestResearch reportWrote,The bull market in China's stock market will continue. Morgan Stanley reiterated its "overweight" proposal for A shares, they will be at the end of 2019Shanghai and Shenzhen 300The index target is maintained at 4300.
Zhongzheng Jun’s previous article “This overseas Chinese stock ETF has grown by nearly 600% a week! Ranked at the top of the world, foreign investors buy, do not follow? It is pointed out that overseas investors are madly buying the China-Shenzhen ETF, such as the CSI 300 Index and the MSCI China A-Share Index, and the exchange of individual stocks into ETFs may be the way for major shareholders to fancy stocks.
Motivation, the first article of compliance
Many investors are skeptical that through the ETF's redemption, can the major shareholder circumvent the new rules and reduce their holdings? NO,ETF redemption cannot circumvent new regulations.
The new regulations for the reduction of shares issued in May 2017 require that the total number of shares of a listed company's major shareholder through the stock exchange's centralized bidding transaction within 3 months shall not exceed 1% of the company's total shares. A large fund company ETF person introduced that the ETF redemption and reduction can not break through the new regulationsRestrictions on the number of reductions and the time of reduction.
ZTE’s announcement also stated that “the time for subscription of the fund shares will be reduced within six months after the 15 trading days from the date of disclosure of the announcement, and ZTE’s controlling shareholder Zhongxingxin Communication will reduce the concentration through any centralized trading within 90 consecutive natural days. The shares of the company (including the shares of the company reduced by the subscription of the fund shares) shall not exceed 1% of the total number of shares of the company." This is consistent with the requirement to reduce the new regulations. There are similar statements in the Sanqi Mutual Entertainment Announcement.
In addition, for the major shareholders, after the relevant regulations in 2017,Restricted sharesIt is also not possible to avoid taxation through ETF redemption.
After ZTE and Sanqi Mutual Entertainment exchange, the market voted with the feet, showing the attitude of the major shareholder ETF exchange. In 2019, as A-shares soared, shareholders took over and reduced their holdings. Eastern wealth data shows that as of March 13,In 2019, 694 listed companies have reduced their holdings by 4.989 billion shares, and the cumulative market value has decreased by 44.452 billion yuan.The disclosed reduction plan, the plan to reduce the market value is nearly 100 billion. In this case, can shareholders' exchange of ETFs reduce the disruption of the market?
(Article source: China Securities Journal)