Priority shares enjoy priority distribution rights, and graded funds can provide various income distribution and principal guarantee mechanisms for priority shares. However, the fund's income distribution meets the priority share, and most of the income distribution will be allocated to the ordinary share. The priority income distribution paid to preferred shares is equivalent to the borrowing cost of common shares.
Ordinary shares will be listed and traded on the exchange, while preferred shares can be arranged to enter or exit through other off-site means.
From the results, the cash flow of preferred stocks will be relatively stable and continuous, and its risk-return characteristics are similar to those of low-grade bonds. Common stock gains a higher proportion of excess income distribution right by transferring the priority distribution right of priority share benchmark income.
According to experts' analysis, in the bull market environment, the discount of common stock after listing can be greatly suppressed, and it is very likely that there will be a premium transaction. This is because the common stock in the hierarchical structure includes call options. But if the market is bearish, the average share is also easy to discount.
The first graded fund issue in China
According to the news of Xinhua News Agency on July 5, the reporter learned from UBS Fund Management Company that the first graded fund in China will officially start raising on July 9, 2007. According to the person in charge of the company's issuance, this issuance plan will be divided into three parts.
The first part is the priority of selling Ruifu (subscription code is 12 1007). The sale time is from July 9 to July 20, 2007. The selling institutions are Industrial and Commercial Bank of China and UBS Direct Selling Center, with a maximum share of 3 billion copies. The minimum amount of the first subscription of China Industrial and Commercial Bank for the priority of Ruifu is 5000 yuan (including the subscription fee), and the minimum amount of the additional subscription is 1 000 yuan; Ruifu gives priority to a single subscription through the direct sales center with a minimum amount of 6.5438+million yuan.
The second part is the offline sale of Ruifu Enterprise (subscription code is 15000 1). The sales period is from July 10 to July 20th, 2007. The minimum share of a single subscription sale is100000, and the maximum sale scale is 600 million. The handling institutions for offline sale are china galaxy Securities, CITIC Jiantou, CITIC Securities, Shen Yin Wanguo, Guotai Junan, Haitong Securities, BOC International, Industrial Securities, Cai Xiang Securities, Huatai Securities, Guosen Securities, China Merchants Securities, Guangfa Securities, Ping An Securities, United Securities and CITIC Jintong.
The third part is the online sales of Ruifu Enterprise (subscription code is 15000 1). On July 1 1, 2007, the online sale of Ruifu Enterprise began, with the maximum online sale scale of 2.4 billion copies. The single subscription share of online sale of Ruifu Enterprise must be 1000 or its integer multiple, and the maximum subscription share shall not exceed 999000. The online selling institution is a member of Shenzhen Stock Exchange and has the qualification of fund agency.
It is reported that the fund manager has the right to adjust the upper limit ratio of online and offline scale according to the actual fundraising situation. During the fundraising period, after the effective subscription of Ruifu Priority, Ruifu Enterprising offline and online on the same day is confirmed, the fund manager will announce it on the company's website and designated media the next day, and stop the corresponding subscription business from now on.