The three large funds are all aimed at the "unlisted" equity layout, and the first phase is about to expire, and has entered the top ten shareholders of 28 individual stocks

National Business Daily

2024-05-28 12:12Posted on the official account of Sichuan Daily Economic News

Every reporter: Ren Fei Every editor: Xiao Ruidong

Recently, the news of the establishment of the National Integrated Circuit Industry Investment Fund Phase III Co., Ltd. (hereinafter referred to as the third phase of the big fund) has attracted widespread attention. Although the third phase of the big fund has been established on May 24, it has not yet reached the investment stage, and there are funds in the secondary market to pay for the expectations. However, the perspective of the industry focusing on the three funds comes more from the strength of industrial support and the effect of the relay of the third phase of the fund.

From the perspective of duration, the first phase of the large fund will expire in September this year, and if it is not rolled over, the relay effect of the third phase of the fund will become the key. Overall, there are now 38 of the top ten shareholders of individual stocks have large funds, of which 28 of the top ten shareholders have the figure of the first phase of the big fund.

The investment type of each large fund is "unlisted" equity

The reporter of "Daily Economic News" learned from the national enterprise credit information publicity system that this investment weapon, which is known as the "big fund" in the industry, has been operated twice before.

Judging from the official disclosure, the first phase of the big fund is 98.720 billion yuan, the second phase is 204.150 billion yuan, and the registered capital announced in the third phase has reached 344 billion yuan, exceeding the sum of the previous two times.

Image source: National Enterprise Credit Information Publicity System website

It is worth noting that among the licences of these three funds, the relevant types of restrictions are all other companies limited by shares (unlisted). This also means that such funds can only enter equity investments through the primary market or the primary and semi-market, and market news such as new entrants or additional positions in the secondary market is inaccurate.

"The rise (semiconductors) in the past two days is the impact of news such as Nvidia's good news and the establishment of the third phase of the big fund." On May 28, some people in the investment community mentioned in a WeChat exchange with the reporter of "Daily Economic News" that the market mistakenly thought that the rebalancing of the national large fund was even biased in the secondary market, and it was not even the type of parent fund.

"A large fund cannot be regarded as a complete fund of funds, and will directly invest in target companies through its own funds, but as an industrial fund with a clear goal, it is usually rarely bought in the secondary market, which is not in line with the positioning of large funds." The person pointed out that due to the focus on the integrated circuit industry, it is difficult to link the changes in related sectors with the investment of large funds.

In fact, for participating in private placements, many large fund shares of listed companies come from this. For example, in 2019, NAURA plans to raise funds through non-public issuance of shares to three specific targets in line with the regulations of the China Securities Regulatory Commission, including the National Integrated Circuit Industry Investment Fund Co., Ltd., Beijing Electronics Holdings Co., Ltd., and Beijing Jingguorui State-owned Enterprise Reform and Development Fund (Limited Partnership), with a total amount of funds raised not exceeding 2 billion yuan.

However, objectively speaking, the proportion of equity investment funds participating in private placement is limited, and it can also be achieved through PIPE transactions. The so-called PIPE transaction, that is, the private equity fund directly or indirectly invests in the equity of listed companies, compared with the equity investment of non-listed companies, PIPE investment has the characteristics of "strong liquidity, short time, and certain exit method". To put it simply, PIPE is a type of private equity investment fund to participate in securities investment in the secondary market, which is equivalent to giving investors a free choice to flexibly allocate stock assets.

The first phase is about to expire and has entered the top 10 shareholders of 28 stocks

The news of the establishment of the third phase of the big fund has driven the activity of the concept of A-share lithography machine and photoresist, but overall, in terms of valuation performance, many stocks are still at a historical low.

It is worth noting that in the past ten years, the first and second phases of the big fund have been among the top ten shareholders of 38 individual stocks. The imminent expiration of the first phase of the large fund may also test the impact of equity exit on the stock price. Wind statistics show that in terms of the allocation of the first phase of the large fund, it has entered the top ten shareholders of 28 stocks.

Specifically, the first phase of the big fund has the highest shareholding ratio of Shanghai Silicon Industry, Zhongju Chip-U, and Tuojing Technology - the report for the first quarter of this year shows that the first phase of the big fund has held more than 19% of the shares of the above three companies, accounting for more than 19% of the total share capital; The shares of Sai Microelectronics, Tongfu Microelectronics, Changdian Technology, China Power Port, and Debang Technology account for more than 10%.

From the perspective of stock price performance, since the second half of last year, the stock prices of many companies have fallen continuously, and the vast majority of this year's yields are still negative, even down nearly 30%. However, judging from the duration of the first phase of the big fund, September 25, 2024 is the business deadline of the fund, that is, the maturity date of the fund.

Image source: National Enterprise Credit Information Publicity System website

If it is not rolled over at expiration, this part of the holdings will gradually enter the exit stage. After the lifting of the ban on the shares held by the listed company, there will be a possibility of withdrawal from the secondary market. Judging from the current industry and individual stock price performance, the earnings seem to be less than ideal.

Therefore, the establishment of the third phase of the big fund is regarded as the key by the industry. On the one hand, through the support of industrial investment, it can lead enterprises and industries to achieve re-growth of performance while promoting industrial upgrading; On the other hand, even if the exit share is undertaken, the industrial competitiveness of the relevant invested enterprises is still obvious, and the investment value of their equity still exists.

In terms of the impact on the secondary market, the above-mentioned investors admitted that although it is difficult for large funds to have a direct investment impact on the secondary market, there will be an indirect impact. For example, if a large fund invests in a company in any sector, then the relevant sector may rise.

According to the analysis of the previous research report of Huaxin Securities, the first two phases focused on investment in industrial chain links such as integrated circuit manufacturing, chip manufacturing and equipment materials, chip design, packaging and testing. In addition to continuing to support semiconductor equipment and materials, the third phase of the large fund is more likely to list high value-added DRAM chips such as HBM as key investment objects.

The first phase of the big fund appeared in the top ten shareholders (partial) of 28 stocks, with a total reference market value of 67.278 billion yuan at the end of the first quarter of this year

The second phase of the big fund appeared in the top ten shareholders of 15 stocks, with a total reference market value of 20.18 billion yuan at the end of the first quarter of this year

Source: Wind

National Business Daily

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