New Rules Implemented for 4 Months; Only 2 Banks Engage in Online IPO Subscriptions! What's Going On?

The implementation of new rules for initial public offerings (IPOs) has been in place for four months, and the progress of banks' participations in online IPO subscriptions is a topic of interest. As of now, only two bank-affiliated companies have ventured into this arena.

Time has passed since Guangda Securities, as the first bank-affiliated company to participate in online IPO subscriptions, took its first step one month ago. Recently, another "new entrant" - Ningyin Investment - has joined the fray, marking a new development in this field.

Prior to this, some analysts interviewed by Securities Times had pointed out that banks' slow progress in online IPO subscriptions was due to various factors such as establishing business processes, building new stock research capabilities, and matching relevant talent. Notably, the two bank-affiliated companies participating in online IPO subscriptions have shown differing performance rates.

This year has seen a surge in new stock prices, with July's growth rate remaining at an all-time high. In just one month, eight newly listed stocks have witnessed average daily growth rates of over 280%.

New Rules Implemented for 4 Months; Only 2 Banks Engage in Online IPO Subscriptions!

On July 29, Guangdong Jikekong Co., Ltd. published its announcement on the first-time public offering of shares and listing on the Growth Enterprise Market (GEM) board, while Ningyin Investment's two products participated in online IPO subscriptions with a combined total value of RMB 7.36 million.

In reality, Ningyin Investment had already made its debut in online IPO subscriptions as early as July 22, participating in the IPOs of Han Sansheng Technology and Tian Fulong's GEM board listing. The next day, it participated in the online inquiry for Tai'an Shenlong's main board listing.

This is a follow-up to when Guangda Securities became the first bank-affiliated company to participate in online IPO subscriptions as early as June 17.

According to insiders, the reason for banks' slow progress in online IPO subscriptions lies with the need to establish new stock research capabilities and build relevant talent. Additionally, the requirement to meet the bottom line of RMB 600 million for online IPO subscriptions may also be a limiting factor.

Research capabilities play a crucial role in determining the success rate of online IPO subscriptions. The performance rates of the two bank-affiliated companies participating in online IPO subscriptions have shown differences.

In the case of Han Sansheng Technology's IPO, both Guangda Securities and Ningyin Investment participated. After excluding invalid bids and the highest bid, the median price for remaining bids was RMB 29.31 per share, with an issuance price set at RMB 28.91 per share. Ningyin Investment's two products each reported a bid price of RMB 29.30 per share, resulting in a total allocation of 4886 shares and a cumulative allocation value exceeding RMB 140,000.

Similarly, for Tian Fulong's IPO, after excluding invalid bids and the highest bid, the median price for remaining bids was RMB 25.18 per share, with an issuance price set at RMB 23.60 per share. Ningyin Investment's three products reported a combined total value of RMB 3520 million, resulting in a total allocation of 4263 shares and a cumulative allocation value exceeding RMB 100,000.

In the case of Guangdong Jikekong Co., Ltd.'s IPO, after excluding invalid bids and the highest bid, the median price for remaining bids was RMB 7.33 per share, with an issuance price set at RMB 6.56 per share. Ningyin Investment's two products each reported a bid price of RMB 7.36 per share.

July's New Stock Prices Set a Record High!

In the context of strict control over A-share IPOs, this year's first-half performance has shown significant improvement in IPO-related earnings. This is indeed eye-catching.

According to analysts at Goldwind Securities, based on their calculations, the total allocation values for main board and GEM board IPOs from January to June were RMB 22.2 million, RMB 0 million, RMB 21.1 million, RMB 21.7 million, RMB 7.1 million, and RMB 9.4 million, respectively.

This year has seen six new stocks with first-day growth rates exceeding 400%, two of which occurred in July. Specifically, on July 31, Dingjia Precision's first day saw a surge of 479.12%, while on July 30, Cihang High-Tech's main board listing saw a surge of 418.47%.