Cow back! The A-share index soared collectively, and institutions bought more than 16 billion

Source of this article: Times Finance Author: Zhang Xinying

Image source: Tuworm Creative

The "strongest combination punch" is coming, and A shares are off to a good start!

At the opening of August 28, the three major indexes broke out collectively! As of about 9:35, the Shanghai Composite Index rose by more than 5%, the ChiNext Index rose by nearly 7%, the Shenzhen Component Index rose by 5.77%, and more than 5,200 stocks rose in the whole market, of which 48 were up to the limit. In terms of funds, Wind data shows that as of 10:05, institutional purchases exceeded 16.2 billion.

In terms of sectors, as of press time, the Wind concept sector except for salt rose sharply, stock speculation software and brokerage concept soared, up 12.2% and 7.92% respectively, financial technology and insurance both rose by more than 5%, and real estate rose by 4.53%.

In terms of individual stocks, Oriental Fortune (300059. SZ) rose more than 10%, flush (300033. SZ) rose more than 9%; Among the bank stocks, China Merchants Bank (600036. SH) jumped nearly 5%; In liquor, Kweichow Moutai (600519. SH) rose nearly 2%; New Energy Zhongningde Era(300750. SZ) rose nearly 3%; The three major operators, China Mobile (600941. SH), China Telecom (601728. S), China Unicom (600050. SH) rose more than 2%.

Source: Wind screenshot

On the evening of August 27, the Ministry of Finance and the State Administration of Taxation issued an announcement that in order to activate the capital market and boost investor confidence, from August 28, 2023, the stamp duty on securities transactions will be halved. Immediately afterwards, the CSRC launched a set of "combined punches", including optimizing IPO and refinancing supervision, further regulating share reduction behavior, and reducing the financing margin ratio.

On August 28, Peter Minci Private Equity partner Tan Hao said in an interview with Times Finance, "This time the policy combination is to deal with and solve the problems of the market at a deeper level, compared with the previous (August 18) 11 articles, the market's reaction is more negative, because everyone feels that the policy (commission reduction, etc.) at that time did not really touch on the deep-seated problems." ”

"But this time is different, this time the core of the combination is first of all confidence and expectation reversal, in the capital market, confidence and expectation are always the first important," Tan Hao said, "[these policies] is not a decentralized concept, it is a top-down policy design led by an outline, and it is still very combinatory." ”

Stamp duty reduction may reduce transaction costs by $100 billion

The stamp duty that has attracted the most attention from investors is stamp duty, which has been a matter of concern to the capital market since the Politburo meeting on July 24 and has sparked heated discussions.

On the evening of August 27, Yang Delong, chief economist of Qianhai Open Source Fund, told Times Finance, "This direct reduction of stamp duty by up to 50% will reduce transaction costs by hundreds of billions a year, which is timely rain for the majority of investors and a major benefit that many investors have been waiting for for a long time." It is expected to form a positive boost to the market movement this week and for a long time to come, driving a sharp rebound in the market. ”

Tan Hao also said, "In the transaction fees of A-shares, stamp duty is the majority. From the perspective of trading, it will play a role in promoting the active market, especially relatively short-term trading and quantitative trading, and greatly reduce transaction costs and transaction fees. ”

Looking back, this adjustment is the tenth adjustment in the history of A-share stamp duty.

According to a research report by BOC Securities on August 18, since the first stamp duty was imposed in 1990, the stamp duty on A-share transactions has been raised three times and lowered six times, mostly during periods of overheating and excessive downturn.

According to the two most recent reductions, on April 24, 2008, the stamp duty was lowered from 3‰ to 1‰, and the Shanghai Composite Index soared by 9.29% on that day; On September 19, 2008, stamp duty was changed from bilateral to unilateral, and the Shanghai Composite Index soared by 9.45% on that day, and all A-share stocks rose to the limit.

BOC Securities Research Report also pointed out that the market reacted quickly and significantly to the two downward revisions in 2008, in addition to the Shanghai Composite Index rising by more than 9% on the first day, the wave lasted for 5~6 trading days, with a cumulative rise and fall of 14.7% and 21.2% respectively.

"According to the performance of the Shanghai Index after the adjustment of the previous stamp duty, although it is not the bottom position (after the stamp duty is reduced), it is not far from the bottom position," on August 27, a brokerage told Times Finance, "Now it can indeed be more positive, the current science and technology 50, science and technology innovation 100 index has basically broken through the historical low." ”

The reduction of stamp duty will help reduce the cost to investors, thereby promoting the scale of market transactions.

According to the statistics of First Finance and Economics, there are currently more than 220 million individual investors in the mainland stock market, accounting for 99.76% of the total market investors, of which small and micro investors with a stock market value of less than 100,000 yuan and 100,000 yuan to 500,000 yuan account for 87.87% and 8.12% respectively.

The new rules for reducing holdings are "the most powerful"

Following the heavy stamp duty policy, the CSRC successively issued three announcements, including "CSRC Coordinates Balance in Primary and Secondary Markets to Optimize IPO and Refinancing Regulatory Arrangement", "CSRC Further Regulates Share Reduction", and "Stock Exchange Reduces Financing Margin Ratio to Support Moderate Financing Demand".

In terms of optimizing the regulatory arrangements for IPOs and refinancing, the CSRC clearly pointed out that the financing interval and financing scale of listed companies with breakdowns, net breakdowns, continuous losses in business performance, and high proportion of financial investment should be appropriately limited. It is worth noting that the refinancing of listed real estate companies is not subject to breakdown, net breakage and loss restrictions.

In this regard, Yang Delong told Times Finance, "(This policy) reflects a certain standardization, but considering the tight capital of real estate listed companies in that year, it is stipulated that real estate is not affected by breakdowns and net breakdowns, which is also to stabilize market expectations." ”

For the policy of regulating the reduction of holdings, some analysts believe that it is the "strongest positive".

The CSRC requires that if a listed company has broken its issuance or net breakdown, or has not paid cash dividends in the past three years, and the cumulative cash dividend amount is less than 30% of the average annual net profit in the past three years, the controlling shareholder or actual controller shall not reduce its holdings of the company's shares through the secondary market. The concerted actors of the controlling shareholders and actual controllers shall implement the above requirements mutatis mutandis; Where a listed company discloses that it has no controlling shareholder or actual controller, the largest shareholder and its actual controller shall implement the above requirements mutatis mutandis.

At the same time, strictly control the total amount of shareholders of other listed companies to reduce their holdings, and guide them to reasonably arrange the pace of reduction according to the market situation; Encourage controlling shareholders, actual controllers and other shareholders to undertake not to reduce their holdings or extend the lock-up period of shares.

The CSRC also said that it is speeding up the revision of the "Several Provisions on the Reduction of Shareholdings by Shareholders, Directors and Supervisors of Listed Companies", improving the level of effectiveness of the rules, refining relevant liability provisions, and intensifying the crackdown on illegal shareholding.

Tan Hao said to Times Finance that "the policy of shareholders reducing their holdings is very powerful, and the capital market must be active for a long time, not only to undertake the function of financing listed companies, but also the function of the investment side to continuously create returns for participants." ”

On the evening of August 27, some market participants analyzed to Times Finance that "(the new rules for reducing holdings) will change the original model of enterprises frantically increasing production capacity during the boom period and using high PB premiums to cash out in the secondary market." If the current enterprise does not generate profits and dividends, it is necessary to think about whether the production capacity is not up and whether there is a need to refinance. The new rules bind the interests of major and minority shareholders, so there is also a need to reward shareholders. ”

In terms of margin ratio, the CSRC has stipulated that the minimum margin ratio for investors to purchase securities will be reduced from 100% to 80%. The CSRC stated that on the basis of the overall controllable leverage risk, moderately relaxing the financing margin ratio is conducive to promoting the function of margin lending business and revitalizing existing funds. The policy will be implemented after the close of business on September 8 this year.