Yesterday, ZTE was suddenly blocked by the United States, triggering a sharp drop in the stock market.
As an aggravating factor for institutions, the abrupt suspension of ZTE’s shares also affected the funds of Shigekura’s shares and began to adjust its valuation. Judging from today’s valuation adjustment announcement, many funds have valued ZTE’s valuation methods in accordance with the “Indexed Income Law” since yesterday, and cautiously.fund companyThe price of ZTE's shares was substantially lowered, and the downward adjustment was close to 20%, that is, two limit-downs!
CITIC Prudential andChangxin FundTake the lead in downgrading ZTE's valuation
After the incident of ZTE, the fund companies that first lowered their valuations significantly were CITIC Prudential and Changxin Fund.
China CITIC Prudential announced today that it has readjusted the "ZTE" stock valuation method held by its funds:
According to the "China Securities Regulatory Commission on securities investmentFund valuationThe “Guiding Opinions of the Business” (China Securities Regulatory Commission Announcement  No. 13) and other related regulations as well as the relevant suspension announcement of ZTE Corporation on April 17, 2018, agreed upon by CITIC Prudential Fund Management Co., Ltd. and the fund custodian.Since April 17, 2018, valuation adjustments have been made for "ZTE Corporation" (stock code: 000063) held by its securities investment funds, and valuations have been made at RMB 25.05 per share.
The CITIC Prudential Fund stated in its announcement that it will pay close attention to the follow-up operation of ZTE and other major issues, conduct a reasonable assessment, consult with the fund custodian, and further determine its valuation price if necessary. When the shares of ZTE Corporation are resumed and their transactions reflect the characteristics of the active market transactions, they will be resumed at the closing price on the same day and no further announcement will be made at that time.
CITIC Prudential Announcement screenshot
Also choose to significantly reduce the valuation of long-term funds, according to the long letter fund announced today on the adjustment of the valuation of the price of the securities held by their funds:
In order to make the valuation of the relevant funds of the fund managers fair and reasonable, according to the requirements of the "China Securities Regulatory Commission's Guiding Opinions on the Valuation Business of Securities Investment Funds" (CSRC's Announcement  No. 13) in accordance with the requirements of the China Securities Regulatory Commission. After consultation with the trustee and the accounting firm,Changxin Fund Management Co., Ltd. decided to make a valuation adjustment to the stock held by the company's funds, ZTE Corporation (stock code: 000063), at a valuation price of 25.36 yuan from April 17, 2018.
After the above stock trading reflects the characteristics of active market transactions, it will revert to using the closing price of the day for valuation, and no further announcement will be made at that time.
Long letterFund announcementScreenshots
The reduction is equivalent to two limit stops
Since ZTE’s closing price on Monday was 31.31 yuan, the valuation of 25.25 yuan given by the CITIC Prudential Fund and 25.36 yuan given by the Changxin Fund was 20% and 19% lower than the closing price before the suspension. The CITIC Prudential Fund estimated two limit-downs, and the long-term fund's valuation is also close to two limit-downs. In the absence of clarity, the two funds have taken the lead in sharply lowering their valuations, apparently due to careful consideration.
Affected by the collective decline of the major indices and the significant downward adjustment of valuations by individual funds, the net value of more than one publicly-funded fund unit fell more than 3% yesterday, with a drop of more than 4% reaching 26, a fund that has significantly lowered its valuation. Only products fell by more than 4.5%.
More funds are valued according to the "Index Income Approach"
However, unlike the prudent handling of CITIC Prudential and Changxin Funds, more fund companies have chosen to value ZTE for the time being in accordance with the index income approach. includeBaoying Fund,Huafu Fund, China Post Venture Capital,Harvest Fund,Oriental FundMany funds, such as the Jinxin Fund, were announced today. According to relevant regulations and in consultation with custodians, since April 17, 2018, the "ZTE Corporation" held by the company's securities investment funds has used "indexed earnings." Law" valuation. After the above stocks resume trading and the transactions reflect the active market trading characteristics, they will resume using the closing prices on the same day for valuation.
The so-called index income method means that when a stock is suspended, it is valued according to the index fluctuation of the stock where the stock is located. The industry generally uses the industry index valuation issued by the China Association of Fund Industry.
According to the valuation information disclosed by the fund industry association website, ZTE Corporation belongs to the AMAC information index, and the index fell by 3.99% yesterday, that is, the valuation price of the above-mentioned fund company to ZTE yesterday was 31.31*(1-3.99%)=32.56 yuan. . Before ZTE had no resumption of trading, these fund companies would calculate ZTE's valuation based on the fluctuation of the AMAC index on the trading day andNet fund valuein.
It is worth noting that not all funds holding ZTE need to be valued according to the indexed earnings method. This point is more clearly stated in the valuation adjustment announcement of a fund company, which is generally held by a company’s fund. The fair value of investment products such as suspension trading stocks that have no market value on the valuation day and whose impact on the net value of the fund exceeds 0.25% is determined based on the "Indexed Income Approach" valuation.
To put it more plainly, if a fund holds a lot of ZTE, if it is not valued according to the index income method, it will result in a difference of more than 0.25% in net value. It is necessary to adjust the valuation according to relevant regulations, if it is lower than 0.25%, you can hold your soldiers.
Huafu Fund's valuation adjustment announcement
At the end of last year more than 600 public funds were held by ZTE
Total market value reached 10 billion yuan
ZTE has always been the focus of fund positions, as the quarterly report of public funds has not yet been announced. We can see from the fund's 2017 annual report how many public funds hold the stock.
According to statistics, as of the end of last year, a total of 653 public funds held different numbers of ZTE, and the total number of these funds held reached 326.59 million shares. According to the market price at the end of last year, the stock market value exceeded 10 billion yuan, although ZTE this year The stock price of telecommunications has fallen, but according to the closing price before the suspension, the market value of public offerings still holds about 10 billion yuan. At the same time, there are also some public funds that hold ZTE Hong Kong stocks.
Looking at the number of positions, at the end of last year, there were three large-scale fund positions with more than 10 million shares, namely China Merchants Fengqing, Southern Ingredients Selection, and Huitianfu Private Energies. The reforms of state-owned enterprises in rich countries, Xingquanherun, and Guangfa The leading companies in the industry, Guangfa Jufeng, Jiashi Steady, and Rongtong Shenzhen SME 100 etc. hold between 5 million shares and 9 million shares. Most funds have less than 1 million shares.
However, depending on the impact of ZTE on the net value of the fund, the main reason is that the market value of holding the stock accounted for the proportion of the net value of the fund, and the higher the proportion of funds, the greater the impact on the fund. Our statistics on the fund's 2017 annual report show that at the end of last year, there were 53 funds with a market value of over 5% of the market value of ZTE's shares, which were among the higher positions. Among them, 11 positions accounted for more than 8%, and the highest was close to 10%.
However, what needs to be explained here is that the existing open position data are all at the end of last year. ZTE has been trading since this year, and some funds have the possibility of adjusting position of ZTE. Before the suspension of this stock, the public fund holders The situation of Shigekura and Shigekura is still not known. Therefore, investors can't judge the current situation by taking a position at the end of last year. The specific announcement issued by the fund company shall prevail.
Therefore, this article only lists the funds that hold a large number of ZTEs at the end of last year and does not make any judgment. Again, the fact that there are a large number of shares does not mean that the proportion is high.
Some social security portfolios lighten up in the fourth quarter of last year
In addition to public funds, there are other institutional investors holding a large number of ZTE. According to the 2017 annual report of ZTE Corporation, a total of three social security groups are listed among the top ten shareholders of the company. The number of shares held is respectively 41.988 million shares. 23 million shares and 20 million shares, however, compared with the end of the third quarter of last year, the number of shares in the first two social security portfolios has decreased, indicating that the lightening has been carried out, and the other combination has a slight increase in positions, showing a general trend of lightening up. A social security portfolio that had appeared in the top ten shareholders at the end of the third quarter of last year was significantly reduced in the fourth quarter of last year and withdrew from the top ten tradable shareholders of ZTE.
Whether or not these social security portfolios will continue to be reduced in the first quarter of this year, we must wait until the quarterly disclosure of ZTE to make further judgments.
There are also asset management companies
In addition to public funds and social security, we also organized some cases in which securities companies’ assets management products held ZTE at the end of last year. On the whole, the asset management products of securities firms are small in scale, and the number of holding ZTE is generally small. There are two stocks of securities companies with a large number of asset management products, which are 830,000 shares and 72 million shares, and two shareholdings. There are 350,000 shares and 200,000 shares, and the rest are less than 100,000 shares.
However, from the perspective of the ratio of the market value of ZTE’s open positions, there are many securities companies that hold relatively heavy positions, with more than 5% of about 20, and the highest percentage of two product positions is more than 10%. There are also many products. Positions above 8%, if you do not lighten up this year, it is expected that the impact will be greater.
How does the seller organization see the impact of the ban on ZTE?
Huatai Securities:The incident forced domestic upgrading and substitution, focusing on domestic alternatives: The incident reflects the importance of the domestic substitution of upstream core components, and recommended the technology with independent optical chip design capabilities. It is recommended to pay attention to Haig Communications, the leader in military communications, and the domestically-received manufacturer Shengyi Technology in communication PCB copper clad boards, Bochuang Technology, Xinyisheng in the field of optical modules, and Hetai, Jinxinnuo and Beidou navigation electronic devices in the field of RF chips. Leading vibration core technology.
Sichuan Finance Securities:At present, key devices are basically completely dependent on imports, and localization of chips needs to be accelerated. Compared with the United States and other international advanced levels, the current domestic chips have a big gap, and the national yield of base station chips is almost zero. They basically rely on imports for key technologies such as PLL, ADC/DAC, RF, and high-speed optical communication interfaces. . The U.S. Department of Commerce’s sanctions against ZTE once again sounded a warning to the mainland chip industry, and the process of localization of chips needed to be accelerated. This incident has a greater impact on domestic chip design and manufacturers, but it will also boost its efforts to increase independent research and development. Domestic manufacturers are expected to increase funding and talent introduction efforts, and do a good job of patent protection and other related measures. Related to the subject: Huali Chuangtong, Wuhan Fangu, Acceleration and other technology.
Cai Tong Securities:Trade war and technology protection will surely become the catalyst for the development of domestic semiconductors: At the time of semiconductor localization, the protection of trade wars and technical barriers has become a stumbling block to the development of domestic high-tech industries. The domestic policy level and the semiconductor industry are stimulated by this incident, and the overall industry support will continue to be strengthened. Judging from the chip industry chain, there are currently deep-level layouts from equipment, design, manufacturing, and packaging in China.
Judging from the development trend of global semiconductor industry, the industry has accelerated its transfer to China; domestic policies have strongly supported the integrated circuit industry; in terms of scale, the growth rate of the domestic industry has remained high in 2018. 2018 will also be the first year of development and investment in the domestic semiconductor industry.
Investment suggestion: It is recommended to pay attention to the upstream equipment leader of chip and semiconductor manufacturing, North China Chuang; the excellent index of national memory chip Zhaoyi Innovation; benefit from the PA chip manufacturing foundry of 5G communication era; Sanan Optoelectronics; domestic high quality power device IDM manufacturer Yang Jie Technology.
Interpretation of events>>>
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(Original title: Heavy! ZTE Corporation was hit by two “limits”, and two public funds were the first to cut their valuations! More than 600 funds held a market value of 10 billion yuan at the end of last year.)