The Science and Technology Innovation Board is about to open, and investment institutions are sharpening their skills to "innovate."

In fact, due to the difference in the proportion of offline winnings among the three types of ABC accounts, in terms of innovation on the Science and Technology Innovation Board, compared with public funds (Class A), private equity funds (Class C) are more There is no advantage, but the enthusiasm of private equity institutions remains unchanged.

Preparation strategy

According to the relevant provisions of the above-mentioned "Measures", only private equity institutions that meet certain conditions can participate in offline innovation. For example, the total management scale of a private equity fund manager should be more than 1 billion yuan for two consecutive quarters, and at least one of the products managed should have a duration of more than 2 years; the scale of the private equity fund product applying for registration should be more than 60 million yuan, and the entrusted third The third-party custodian independently manages the fund assets. In addition, it also includes internal control requirements for offline investors and measures for handling violations.

At present, at least 7 securities private equity funds with the word "Science and Technology" have been successfully registered. At the same time, many private equity institutions have stated that they will actively participate in science and technology innovation board investments. However, due to differences in team backgrounds and past investment and research experiences, private equity institutions have different attitudes toward innovation on the Science and Technology Innovation Board.

As a private equity fund that completed registration earlier, He Ran, CEO of Shenzhen Youmeili Investment Management Co., Ltd., told reporters, “Our Science and Technology Innovation Board Fund also intends to invest based on the primary market idea. That is to conduct valuation and analysis of technology companies and make long-term value investments.”

When talking about new products, He Ran said, “Compared with new red envelopes, we prefer to use quantitative screening and data. Calculate and accurately discover the value of the enterprise. Of course, if you have the opportunity to participate in new dividends, you will not miss it, after all, you must consider the fund’s net value curve.”

Li Jinlong, general manager of Regan Assets, said that he is currently in the preparation department. When developing new products on the IPO, in the future, we should focus on the benefits brought by new products and participate in the game of stock prices after the company goes public to a limited extent. He also mentioned that the early layout of the Science and Technology Innovation Board will mainly focus on innovation, and some quantitative strategies for the Science and Technology Innovation Board will also be deployed in the later stage. The current quantitative difficulty of the Science and Technology Innovation Board lies in the lack of historical data and suitable hedging tools.

Talking about the difference between private equity and public equity in developing new products, Chen Xi, founding partner of Kaina Capital, pointed out that the main difference between public equity and private equity is the ability to make quantitative hedging strategies, while private equity makes quantitative investments. The ability to obtain excess returns is often stronger than that of public equity, so in new offline products with quantitative hedging as the bottom position, the income of private equity should be higher than that of public equity funds.

Chen Xi explained in detail, “We will use fundamental quantitative stock selection strategies to select stocks on the Shanghai Stock Exchange as bottom positions, and then hedge them through three stock index futures (Shanghai 50, CSI 300 and CSI 500) The market risk of our stock selection. It is expected that under this quantitative hedging method, the return on the bottom position will be between 8% and 15%, and then the return will be added through the Science and Technology Innovation Board. Currently, many institutions predict the Science and Technology Innovation Board. The new return is between 6% and 15%. Therefore, we believe that the combined return of the two strategies is expected to reach more than 20%." Chen Xi also pointed out that the advantage of private equity funds is that they are flexible enough. For Category investors, the winning rate is not as high as Category A, but the threshold for private equity funds has also been significantly lowered. Public funds require a 200 million establishment threshold. Although the winning rate is high, the income may be diluted at the same time. There is almost no threshold for private equity funds (you can set up with more than 10 million yuan), so we can adjust the product scale according to the minimum new market capitalization requirements. In addition, private equity funds can establish multiple products and participate in offline innovation at the same time. Once there is no profit or the profit decreases from new investment, private equity funds can switch to other strategies at any time.

New Challenges

It is worth mentioning that the trading system of the Science and Technology Innovation Board has changed compared with the main board, which has brought challenges to investors who hope to obtain excess returns through new innovations. challenge.

He Ran believes that the trading rules of the Science and Technology Innovation Board are more international and advanced, but it is indeed difficult for private equity to participate in the Science and Technology Innovation Board to innovate. For example, there is no price limit for the first five trading days, and loss-making companies It can also be launched on the market, these are challenges. "However, as of now, dozens of public funds can be issued, and investors are very enthusiastic about participating, so I think the first five trading days are still optimistic, so be cautiously optimistic."

< p> "We are good at investing in the secondary market with the strategy of the primary market, so for us, the Science and Technology Innovation Board is also a good platform." He further explained that before investing, we needed to meet many companies and travel a lot In some places, the workload of due diligence is very heavy. Now we can directly screen companies on the Science and Technology Innovation Board platform, which reduces the workload. Of course, the prerequisite for this is that the regulatory review of information on companies on the Science and Technology Innovation Board is in place.

Cen Sai-in, Vice President of Cornerstone Capital, pointed out that the Science and Technology Innovation Board does not impose a price limit in the first five days, and there is no rule of thumb to follow in terms of rhythm control. In addition, many companies have no profits or very low profits, so it is difficult to value these companies. "The U.S. market is used to speculating on unprofitable companies, but the Chinese market has no such habit or precedent."

In Chen Xi's view, the key risk that needs to be guarded against when entering new private equity markets is how to ensure stable profits from the bottom position. .

"So we have adopted very strict requirements to ensure industry neutrality, market value neutrality, and beta neutrality through quantitative hedging. There is no obvious exposure to various Barra styles." He further explained.

He also said that when the Science and Technology Innovation Board was just launched, the difficulty in investing was that the number of stocks was too small, making it difficult to enhance returns. "Based on the trading rules, I think the Science and Technology Innovation Board will be more volatile. The band timing strategy of individual stocks may be more effective, and the high-frequency strategy will also be more effective."

In addition, according to regulations, The offline issuance of the Science and Technology Innovation Board to professional institutional investors has reached at least 70% (the total share capital after the public offering does not exceed 400 million shares) and 80% (the total share capital after the public offering exceeds 400 million shares or the issuer has not yet made a profit) proportion, of which 50% of the offline issuance amount will be given priority to Class A and Class B investors (public offerings, social security funds, pension funds, corporate annuity funds, insurance funds, etc.). Earlier media reports stated that some private equity institutions may use the public offering (Type A) channel to participate in offline new investments to increase their allocation quota.

In this regard, Li Jinlong said that this possibility cannot be ruled out because the offline winning rate of public offerings is higher than that of private placements, but at the same time, the specific conditions of the public offering channels, such as winning rates, scale, fees, etc., should also be considered factor.

Chen Xi told reporters, “We are currently exploring the possibility of cooperation with public funds. There is currently no clear cooperation model. We also hope to find a way to ensure higher returns from quantitative hedging positions. , and at the same time can enjoy the product form of high school signing rate.”

But in He Ran’s view, private equity using the guise of public fundraising to participate in innovation is of little value. Because private equity funds are subscribed by high-end customers, while public offerings are more subscribed by retail investors, the volume may be larger, and the return rate may be very low. “I learned that some fund companies’ promotion of Science and Technology Innovation Board products is close to fixed-income products, with an expected return rate of 8 points a year. It is impossible for us to invest in them (public offerings). From an interest rate perspective, it is not cost-effective. ” he explained further.

(Source of article: China Business Network)