According to the current rules, whether individual investors or institutional investors want to participate in the offline subscription of new shares, the first step is to obtain the offline inquiry qualification from the China Securities Association. Only investors with this qualification , you are eligible to participate in the inquiry and subscription of new shares on the Shanghai and Shenzhen Stock Exchanges.
So, how to obtain the quotation qualification from the China Securities Association? In other words, what are the thresholds and processes?
This first involves a document from the China Securities Association, namely the "Offline Investor Management Rules for Initial Public Offerings of Stocks". According to the rules, investors participating in IPO stock inquiry and offline subscription business should To register with the China Securities Association, you must meet four basic conditions:
1) Have certain securities investment experience. Institutional investors should be established in accordance with the law, continue to operate for more than two years (inclusive), and engage in securities trading for more than two years (inclusive); individual investors should engage in securities trading for more than five years (inclusive). Institutional investors who are administratively licensed to engage in financial businesses such as securities, funds, futures, insurance, and trusts are exempt from the above restrictions.
2) Have a good credit record. It has not been subject to criminal penalties in the past 12 months, and has not been subject to administrative penalties or supervisory measures by relevant regulatory authorities due to major violations of laws and regulations, except where investors can prove that the punished business is isolated from the securities investment business and entrusted investment management business.
3) Have the necessary pricing capabilities. Institutional investors should have corresponding research capabilities, effective valuation and pricing models, scientific pricing decision-making systems and complete compliance and risk control systems.
4) Other conditions required by regulatory authorities and associations.
The rules adopted by the China Securities Association for six types of institutional investors, including securities companies, fund companies, trust companies, financial companies, insurance companies and qualified foreign investors, are self-registration, while for other institutional investors or Individual investors need to be recommended to the China Securities Association for registration by a securities company with securities underwriting business qualifications.
China Securities Synergy also requires securities companies to be responsible for verifying the recommended offline investors to ensure that the recommended offline investors meet the basic conditions stipulated in Article 4 of these Detailed Rules.
In order to attract or retain major customers, each securities company has formulated its own thresholds for recommended investors to participate in offline inquiry of new stocks, and will recommend qualified investors to the investment banking department through the brokerage business department. , and then recommend it to the China Securities Association, and after filing, register to become a recommended inquiry object with inquiry qualifications.
The second step of offline subscription of new shares has sufficient market value chips
Does that mean that investors find a securities firm to successfully recommend themselves to the China Securities Association to become a qualified recommendation inquiry object? After that, can you participate in any offline inquiry and subscription of new stocks? The answer is of course no, at least not entirely correct.
Please see the rules:
The issuer and lead underwriter of the initial stock project can set specific conditions for offline investors and disclose them in advance in the relevant issuance announcement. The specific conditions shall not be lower than the above four basic conditions.
The issuer and the lead underwriter should require the stock allotment objects designated by offline investors participating in the offline subscription business of the project to use the two trading days before the initial inquiry of the project as the base date. The daily average circulating market value of unrestricted stocks in the twenty trading days (inclusive) before the base date of the stock exchange where the project is issued and listed should be more than 10 million yuan (inclusive).
The lead underwriter should verify whether they meet the pre-disclosure conditions of the initial stock offering project within the scope of offline investors and stock allotment targets that have completed the association registration, and select those who can participate in the project inquiry For offline investors and stock allotment targets in offline subscription business, if they do not meet the conditions, their quotations should be rejected or eliminated.
If you have been paying attention to the offline subscription of new stocks for a long time, you must still remember that there was a new stock at the beginning of the year - Stellite, and the underwriter and sponsor was Citigroup Orient Securities. The new stock clearly stated in the price inquiry announcement that investors participating in offline price inquiry are required to hold the daily average circulating market value of non-restricted stocks in the Shanghai stock market in the 20 trading days before T-6, 2016 (including T-6). More than 30 million yuan (inclusive).
There are many detailed issues here. How to calculate the market value of investors? Please read carefully the following six points in the "Implementation Rules for Offline Issuance of Initial Public Offerings" of the Shanghai and Shenzhen Stock Exchanges:
1) The market value held by the placing objects shall be based on the date of X-2 (day X is the preliminary Calculated by the daily average holding market value of the first 20 trading days (including X-2 days) on the start date of the inquiry (the same below). If the placement target securities account has been open for less than 20 trading days, the average daily holding market value will be calculated based on 20 trading days.
2) If the same securities account of the placement object is held in multiple places, their market value will be calculated together. If the allotment object holds multiple securities accounts, the market values ??of the multiple securities accounts will be combined and calculated.
The principle for confirming that multiple securities accounts are held by the same allotment target is that the "account holder name" and "valid identity document number" in the securities account registration information are the same. Securities account registration information is subject to the end of day X-2.
The market value of the credit securities accounts of margin financing and securities lending customers is combined and calculated into the market value held by the allotment object, and the market value of the securities company's refinancing guaranteed securities detailed account is combined and calculated into the market value of the securities company's self-operated account.
3) For securities company clients’ dedicated asset management accounts and corporate annuity accounts, if the “account holder name” and “valid identity document number” in the securities account registration information are the same, they will be treated separately as securities accounts. Calculate market value and participate in subscription.
4) The market value of unqualified, dormant, or canceled securities accounts will not be calculated.
5) Judicial freezing or pledge of non-restricted A shares, as well as shareholding restrictions on directors, supervisors, and senior managers of listed companies, will not affect the calculation of the market value held in securities accounts.
6) The market value held by the placement object is calculated based on the product of the number of shares included in the market value calculation range in its securities account and the corresponding closing price.