Ye Tan: Split Listing Encourages "Demon Stocks" And Speculators

Listed companies with the concept of spin off have become the darling of the securities market, which is another foam stirring stick handed to the speculators of the securities market by the relevant departments.

The speculators understood that when the Shanghai and Shenzhen indexes fluctuated back and forth, the split concept stocks bucked the trend. Since domestic listed companies that meet the six conditions can go to the GEM for spin off listing, relevant concept stocks have been wildly sought after. On the 21st, Datang Power Generation (601991) opened at a trading limit, and Unisplendor (000938), which was trading at a trading limit on the 20th, went high. Previously, Tongfang Shares (600100), Unisplendor Shares, Liaoning Chengda (600739), Haihong Holdings (000503), etc., all rose sharply against the market.

Perhaps the management wants to introduce funds into the real economy to help the development of China's high-tech (600730) enterprises, but the result is that the market is rapidly rising and closing, and speculators have made great profits. Enterprises that are steadfastly engaged in high-tech investment and R&D have become the foot of speculators. The author has seen more than once that scientific researchers and investors have worked hard to start their own businesses, but they cannot get support after putting their money in their pockets. However, such heterogeneous companies as Haihong Holdings have become very popular.

Taking Haihong Holdings as an example, it was once known as "the first online stock", but investors have the deepest memories of "demon stock" and "the first market stock in the Jianghu". Never lag behind in the manufacturing concept, from online games to e-commerce to the current split concept, so never miss any wave of market. In September 2005, the media exposed that "Zhou Qi was in charge of Haihong: 700 million yuan went in and 2.5 billion yuan came out". It was normal for the performance to rise and fall sharply. Can such a company bring us the future of China's high-tech development? Following the concept of "demon stock", China's high-tech will only go to hell.

Maybe many people will say that Haihong Holdings is just a special case, so it is likely that the whole meeting will overturn a ship of people. In fact, many of the spin off concept stocks have bought shells for many times, and there are several listed companies under the company. Liaoning Chengda and other companies are also very popular stocks.

The GEM should be the value agglomeration place of China's growing enterprises. The spin off and listing of high-tech businesses under large cap stocks can neither bring about changes in ideas nor change the tangled related transactions between parent companies and subsidiaries. Moreover, the refinancing of these listed companies has received preferential treatment for many times, and large listed companies basically do not have cash flow problems. Let these listed companies spin off and go public, which will inhibit the growth of private market-oriented high-tech enterprises, and tilt the balance again towards large enterprises, making the GEM more similar to the main board market with full administrative flavor in nature.

To say the least, for the sake of market fairness, the relevant departments have never prohibited excessive spin off listing, so why does the regulator need to propose a separate spin off listing motion. On the surface, it is an impartial proposal. In fact, in the context of the Chinese securities market, the deliberate proposal means that Tianping has tended to large enterprises, and the market has made an exaggerated response, echoing the regulatory motion.

What kind of GEM do we need, a "transgender market" attached to the main board market? Or is it a market with independent character that is beneficial to China's high-tech enterprises and the marketization of future enterprises? The author's conclusion is the consequence, so he firmly opposes the large-scale spin off listing. The spin off listing is of course beneficial. It can consolidate the monopoly position of large enterprises, expand the scale of large listed companies, make asset prices unattainable, and no one can take away the controlling shares. The disadvantage is that the hope is placed on the current large enterprises, and it is impossible to realize the illusion that the future light of science and technology can be born within the current system. At the beginning, China's IT and outsourcing businesses were nurtured by private small enterprises. Now, innovative technology appears in coastal manufacturing enterprises, which shows the dawn of China's market-oriented high-tech.

There is indeed a precedent for high-tech enterprises to fail completely. For example, after Topper software was listed, it used software as a cover to encircle land crazily, which finally led to the rupture of the company's capital chain. Lepu Medical (300003), a GEM listed company, has been criticized by investors for buying houses and cars with over raised funds. However, this does not mean that the market mechanism of these companies has problems and needs to be guided by the split listed companies, but that China's GEM was too small and the capital scale was too large at the beginning of the launch of the GEM, which made Chinese SMEs full of insecurity, It is also because the insider trading of these enterprises has not been corrected in time by the law.

One kind of error cannot correct another kind of error. What we get will be the superposition of errors.

At present, it is a good opportunity for China's growing enterprises to develop. The market recognizes the future path of high-tech nation building, and after the capital withdraws from the real estate market, it will seek new investment channels. Good decisions will enable China's manufacturing industry to move up to the middle end by virtue of high-tech; Bad decisions will make a rare opportunity degenerate into a short-term fat sharing feast full of speculation.

Recently, I saw Ms. He Wannan and talked happily, but she said that all GEM companies should not be biased against their family background, but should see whether it is conducive to the development of China's future securities market and the development of China's high-tech enterprises. The author supports this view, because he supports this view, he firmly opposes the spin off listing, and hopes that Chinese private high-tech enterprises with independent character can stand out.

Many investors and entrepreneurs are changing their business ethics with the mentality of nirvana, and the incentive mechanism of the decision-making level should obviously help this process, rather than making speculators profit greatly with wrong incentives.