On the early morning of June 11, 2018, the website of the China Securities Regulatory Commission formally disclosed the Xiaomi CDR prospectus. Industry insiders believe that Xiaomi will officially become the first domestic company to issue CDR if the review is passed.
After an interval of 8 days, the millet official Weibo stated on the morning of the 19th that after repeated and careful research, the company decided to implement the listing plan in Hong Kong and China in a step-by-step manner, that is, first to list in Hong Kong and then to choose the domestic market through the issuance of CDR. . Millet chose to postpone the issuance of the application so that the current monitoring of the largest CDR is almost unwarranted. However, the six strategic fund products for the CDR's approval of the product have not been affected. It is still strong.
Xiaomi postpones CDR release
A few days ago, Xiaomi still intends to become the biggest CDR pioneer, but the reversal is still out of reach.
On June 19th, Xiaomi announced the withdrawal of the CDR application and temporarily shelved the A-share issuance of the CDR. This made three days ago determined to become the largest CDR. The supervisory department has already communicated well beforehand. After Xiaomi issued a withdrawal announcement, he immediately s Will respect the release statement. ' For Xiaomi's 'facilitated facts' regulatory authorities agreed.
Some media interpreted the above incidents as: The needs of each other did not meet in a short time. Because of concerns about the valuation pressure of Xiaomi CDR, the Securities and Futures Commission wants to wait for the valuation of Hong Kong stocks to enter into a reasonable range before deciding.
However, it is certain that half a month ago the unicorn company has been 'regarded by the regulatory authorities' and issued the nine supporting documents on the CDR system construction in the shortest possible time to explain everything. Xiaomi submitted the CDR release application as required at the first time. The document is obviously in response to the unicorn enterprise's sincerity.
Xiaomi was full of confidence. At the same time as the H-shares were listed, simultaneous CDRs were issued in the A-shares. However, surprisingly, Xiaomi later stated that delaying the CDR is mainly due to the uncertainty of the domestic capital market environment. In addition, CDR itself is an innovative measure. In order to issue quality products, it has decided to suspend the initiation of the CDR issuance application, and then restart the machine at the right time to safeguard the interests of all parties.
Du Yingmei, chief researcher of the Financial Governance Research Center of China Enterprise News, said in an interview with reporters that the market value of U.S.-listed unicorn companies, such as Baidu, which is preparing to return, and JD.com, etc. are currently at historical highs. In recent years, U.S. With a strong economy, US stocks have set new historical highs. And the CDR issue price of these companies at this point is unlikely to deviate from the current market price.
'If you return successfully, you will have to go through domestic crazy stir, but the premise is that the price is already high.' Du Yingmei said.
Rushing in the brakes
Millet presses the other end of the pause button. The six public placement strategic placement funds created specifically for the CDR are also affecting the market. On June 19th, these six funds were in the national social security fund, corporate annuities and After the sale of certain institutional investors, such as professional annuities, officially closed the days of recruitment.
This reminded Du Yingmei to recall the 360 backdoor return at the beginning of the year. She still feels crazy — before the 360’s return to the US, it’s less than US$10 billion in market value in the United States, and once the market value returned to more than RMB330 billion, the market value has turned up five times.
Du Yingmei believes that the definition of the concept of 'unicorn CDR' that is currently being heated up in various channels is yet to be discussed. The unicorn is only a valuation standard. It refers to those start-up companies that have been established for a very short time and have a valuation of more than US$1 billion. At home, like DDT, although these companies have not yet listed on the U.S. group, this standard can be regarded as a unicorn.
'This time, the tactics of the CDR Strategic Funds have been hotly dealt with. The strategy is for small and medium investors to give priority to, 1 yuan purchases, 500,000 yuan capping, insufficient pension funds to make up, the threshold is low enough, and the pilots are keeping BATJ. High-quality companies with profitable growth. 'Du Yingmei also believes that even if these companies still maintain sustained profitable growth, that is the result of the increase in global assets over the past 10 years.
Du Yingmei's judgment is not unreasonable. On June 19, the Shanghai and Shenzhen stock indexes hit two consecutive new lows. The large unicorn, Industrial Fulian, closed at a low limit and evaporated nearly 100 billion yuan in market value in four trading days. More than 15 billion yuan was released for trading. The fund has floated a loss of 3 billion yuan. Six months ago, it took a lot of time and effort to return to A-shares 360, and the stock price was already low.
According to media reports, on June 21, the six major public offerings will be announced and the fund will be formally established. However, the suspension of Xiaomi CDR has temporarily put the strategic placement fund to be established in an embarrassing state: There is no strategic allocation quota, and bonds will be issued initially. Establish a position for the investment target.
This also means that, at least within a short period of time, investors who have hoped for a high return on the fund have had to lower their expectations.
'In the face of uncertain markets, braking in the madness, said to the CDR, is not a good thing.' Du Yingmei said.
Avoid market risks
It is worth mentioning that CDRs are filed like new stocks, reviewed by the Securities and Futures Commission’s issuance audit committee, sponsored brokers, and online and offline purchases.
In this way, retail investors can participate in the CDR hits and indirectly share the dividends of these high-quality companies. However, due to the pilots, the number of CDR issuance has great uncertainty, which naturally increases the difficulty of retailing. .
Du Yingmei believes that if you want to invest in CDR funds, you should pay attention to two aspects. First, CDR funds require a three-year closed period, which cannot be redeemed for three years. After the closed period of operation expires, they are converted into listed open-end funds, LOF. Investing in this type of fund means that it cannot be redeemed within three years. Some people will oppose that the share of closed-end funds can be traded in the market. However, after the transaction in the market, how can liquidity be guaranteed? Moreover, there are still variables in the development of the world economy in the next three years.
Second, due to a variety of reasons, China’s best Internet companies are listed overseas. For example, Tencent’s stock in Tencent is denominated in Hong Kong dollars, while Ali and Baidu are listed in the United States. Stocks are denominated in U.S. dollars. In this way, the conversion of CDRs and underlying stocks will involve the inflow and outflow of foreign exchange. This involves the issue of the control of state capital accounts, in order to avoid the uncertainty caused by cross-border capital flows. It will be stipulated that, after the pilot enterprises have been listed on the domestic market, the depositary certificates issued in China and the stocks of basic stocks issued overseas will, in principle, not be scheduled for mutual conversion.
Du Yingmei explained that even if you bought the CDR, the CDRs held by investors in the hands of the United States, Ali in the Hong Kong market, Tencent shares are also not convertible. 'To keep your head awake, do not mistake that investing in the CDR is like investing. Alibaba.com and Baidu.com overseas share the same gap. " Du Yingmei said.
'Hoping that when the regulatory authorities opened the green channel for the return of unicorn enterprises, they provided basic protection measures for small and medium-sized investors.' Du Yingmei said that objectively speaking, the starting point for the birth of the CDR Strategic Fund is good and there is no doubt. However, if you want good results, you must rely on a fair, fair and open system to supervise and implement.