Although private placement is attractive to investors with large capital, the lock-up period of 1 year will still bring systemic risks to investors. Once the market turns, the risk of investors participating in private placement will increase. In other words, when issuing additional shares, there may be a risk that the market price is lower than the spot price. At present, the global economic recovery is slow, the European debt crisis still exists, the uncertainty of domestic policy regulation still exists, and the stock market still faces downward systemic risks. How to ensure the profit of lock-in period is an urgent problem for private investors.
Private placement can be hedged through stock index futures.
In order to avoid the systemic risk of stock market in lock-up period, private investors can use stock index futures to implement selling hedging strategy, that is, shorting stock index futures in lock-up period. The lock-up period of private placement is as long as 1 year, so it is impossible to implement hedging strategy during the whole lock-up period. When the stock index goes up, it is meaningless to sell hedging. Only when the stock index tends to fall, it is a good time to implement hedging strategy, so it is more appropriate to choose active hedging strategy. By studying the trend of the spot stock market, we can choose the right time to short the stock index futures, and then settle future positions after the systemic risk in the spot market is released. Finally, the profit of stock index futures is used to make up for the loss of stock price decline, so as to avoid the risk of stock price decline during the lock-up period.
CITIC Futures Shanghai Pudian Road Sales Department has reached cooperation with a number of fund companies on increasing hedging.