Editor's Note

Editor's Note: in order to promote the healthy and steady development of China capital market, the Commission recently launched intensive six initiatives. This special launch series, each of these initiatives conducted in-depth analysis and interpretation. 22nd, 23rd and 24th respectively launched the bond market calling for chess policies are still needed at high speed, and the prevention and control of insider trading of capital market from the source "rodent"Escalation and the chaos-ridden under the State Council over more than 300 trading venues will straighten up, today published the change higher earnings to issue new shares of correlation analysis reports. Recommended reading hexun about City Hall: next week's a-shares or to five major gold stocks are now buying opportunity in consumption will burn at the passion 8 zhanchiyufei muddy water and focus: who blackWho are rushing large shareholders discovered fresh Li 8 a 12-year Player 8 deep investments to realize the IPO of a tiger 29 months "circle" approaching trillion [Twitter] Lao Sha: International Board will do before the path of a [Unit] strong signal is not copied by the end of fools new shares high earnings release, why not? Has been discussed in the industry, regulators have beenIn advance. Recently, the regulators are clear means of gradually changing high earnings situation of issuing shares. So, how can this situation to crack? New stock issue "three highs" is complete with the introduction of initiatives to be changed? ����Everything is looking forward to. Reporter Xia Qing new deal for IPO launch in June 2009 in Shanghai and Shenzhen stock marketSince the marketization of China's securities market has accelerated the pace, but judging from the market for nearly two years of new shares issued, new share issues has exposed serious problems. IPO has become high price issue, high earnings release, superb raised the issue of "three high" release. Particularly prominent are second board companies. According to statistics, the current gem company 275, average price is about$ 35, nearly 68 times times issued on average earnings, average more raised than to 200%. A few days ago, the Commission launched six major regulatory reform measures, which made it clear that, by means of gradually changing situation of high earnings shares. SFC official said, "as a regulator, we are not giving reasonable standards for price/earnings ratio. But the next Commission will continueEfforts to increase the intensity of reforming and perfecting the issuing regulatory ". "Three high" being blamed for a long time, new issues "three high" was criticized by the vast number of investors. ����However, recently, the IPO price generally lower, individual issue price-earnings ratio high became the focus of new shares. A few days ago, published in traditional media (601,999, unit)Biggest IPO Phoenix media (601,928, unit) publishes online success rate and placement results under the net, issue price/earnings ratio as high as 63.4 times times, facing the stock higher issue price/earnings ratio, agency minimum price only $ 5.2/unit, this 1 time difference with the highest bid $ 10.88/unit more than doubled. Prior to this, Phoenix Media findings of a preliminary inquiry, PhoenixThis issue of the issue of the Phoenix Media price range is $ 8/share $ ~8.80/unit (including the lower and upper). ����This range corresponds to earnings before the 2010 issue of level of 46.11 times ~50.72 times, after the release of earnings 57.63 times ~63.40 times. Investor Roadshow platform directly questioning its price/earnings ratio is high. OnThe Phoenix Media Chairman Chen Haiyan said, if calculated according to the sustained viability of standards to the issue corresponds to 2010 year earnings level: 25.23 times ~27.76 times before the release, after the release of 31.54 times ~34.70 times, if on the basis of further consideration 2011 earnings growth of the company, the company of the a shares issueCompared to the full rate of comparable companies and major a-share diablo 3 power leveling, it is more reasonable. ����If Phoenix media in the whole publishing's leading position in the field, Phoenix media give investors the determination of the offering price is set aside a certain amount of space. However, prior to this, shenyin wanguo analysis report, 11, 12, 13 is fully diluted EPS of $ 0.28, 0.33Dollar, $ 0.36, reasonable valuations $ 6.44 per cent. ����Combining similar valuations of listed companies, as well as the current market environment, PE 11 times, corresponds to reasonable valuation $ 6.44 and 7.28 million. China Securities analyst Lin Hu Yu said that taking into account the price of more than 60 times the Phoenix Media PE, it is recommended that the "Beware of the risk of break,Do not purchase ". ����In addition diablo 3 gold, a recent listing of new shares is due to higher pricing very concerned about. On November 22, Dominion optical (002632, unit) listed on the Shenzhen small and issuing valuation 67.65 times times, would become the first new shares with the highest earnings since November. In the small and new shares listing on the six months to only 4Month mastery momentum (002576, unit) 76 times times issued earnings was more prominent. However, Dominion optical to beat 20% on the first day of gains on the day at $ 28.8 opened smoothly after shock, closing $ 28.76, exchange rate up to 88.63%. 2011 three quarterly reports shows that the company's main revenue increased 40% and netProfit growth of up to 181%, diluted earnings per share of $ 0.544, researchers believe that dynamic watch company valuations are not too high. According to another study on Shenzhen Stock Exchange financial innovations laboratory data since October 30, 2009, small and a total of 528 new listings and gem listed, investors to buy the first day of listing5th after losses to 61.23%, especially this year, in Shenzhen a shares break phenomenon not uncommon over 70% shares have fallen below issue price. "Three high" causes diverse new "three-high" release was plagued in recent years priority issues for the development of China's stock markets. It not only severely overdrawn on shares in the secondary market value of investments, greatly increasing the investment in windInsurance. ����Many issuers raise funds ultimately can only be tied up in huge Super Bank, resulting in a huge waste of resources. The reason, analysts said, leading to high price issue, there are many reasons to raise more funds, existing distribution system is not perfect, the market mechanism is not perfect, and investment culture and atmosphere is not reason, do not attach importance to risk revealing, blind hype has large levelsThe Department. ����And, for a long time, the a-share markets, "every new rose", therefore, we are "every new play", supply and demand leads to higher issue price of new shares, high earnings and a high proportion of Super-raising phenomena occur. In addition, the Investment Bank's IPO valuation report is often higher than the final offer price, even in the worst times, higher than the final pricing more than 1 time times the valuation reportA minority. This further led to the inquiry does not trust relationship between agencies and investment banks, inquiry agencies offer also tended to be irrational State, affecting the healthy development of capital markets. ����And its ultimate result, investment banks lost their authority and influence of research on valuation, when the market is hype atmosphere lost control. However, the British Institute of securitiesLong Li Daxiao (blog, Twitter) says that this is a product of China towards market-oriented pricing of securities market, cannot be avoided. Li Daxiao believes that compared to mature markets, the a-share market is a product of a non-market starting immediately fully market-oriented issue may have unforeseen consequences. Progressive realization of market-oriented, progressive reform is the best choice.It is understood that in the mature markets, secondary market pricing is a two-way trade system, and even naked short selling, stock market policy did not favour either, any company dare to unscrupulously pricing, because a great deal of reverse transactions and arbitrage disks poured out of at any time. Market-oriented pricing, market-oriented release, Enterprise IPO pricing will be free to, as long as people buy. So market orgasmBecause of too high a price to attract a large number of new share issues, market downturn as shares was too low when few companies are willing to go public. ����However, subsequent financing very liberal. IPO has been ahead of the market in our country on the road, while on the way there yet to be room for improvement and perfection, General also are able to objectively reflect the prevailing relationship between supply and demand and market accordinglyStock valuation. ����As the new share issue of institutional reforms, gem IPO pricing starting rational return. Data show that since the beginning of this year, the gem IPO price/earnings ratio "-by-quarter" gem release earnings is clearly downward trend. The three quarter 2011 gem release earnings declining, 73.88, 39.91 times. ����Among them, issued in June of this year listed Masson technology (300,237, unit) 18.12 times times the issue price-earnings ratio is the lowest. But insiders said the IPO earnings fall, mostly because of gloomy market and fund this year under the environment of surface tension, if market conditions improve, does not rule out new share price-earnings ratio to rise again, CERTIPCC shares higher earnings results also continue to watch the new deal. Address the high price-earnings ratio required starting with high price-earnings ratio for new shares issued, regulators continue to take measures. SFC responsible person stressed that reform issue regulatory systems, requires sustained effort. In recent years, the Securities and Futures Commission regulating the behavior of inquiries and pricing programs, on the one hand, on the strengtheningMarket restraint mechanism. ����Issuing auditing, in addition to constantly raise the level of auditing, strengthening agency responsibilities, establish intermediary asked the nuclear programs, enhanced on-site examination; release link discovery issues, intensify efforts to investigate and; supervision on release process, increasing risk, efforts to increase transparency, improve predictability and so on. Industry sources said, to further change highEarnings situation of issuing shares from the multifaceted approach. ����In the process of inquiry, to strengthen inquiry quotation of market supervision, to establish a reward the good and fine [punish] the bad control mechanism, eliminating inquiry objects offer poor quality; we should further improve the pricing mechanism, improving small and medium-sized investors to say in the valuations process. Many industry experts and scholars are also given their ownRecommendations. Li Daxiao, available from the following address. First of all, you can control the total, dispersing listed for centralized listing, that is, from eating less meals to set meal, so that you can implement control the listing price of new shares. At the same time the number of more than a, investors naturally there is not much interested in going to the hype. Followed by the first release, delayed after a few months or moreLong-listed, with increased playing time for new risks, control its hype, while there is plenty of time to clearly understand the value of the company's investment. Wuhan University of science and technology, Director of the Institute of finance and securities Dong Dengxin (blog, Twitter) suggested that the IPO Netherlands auction pricing, that is, direct quotes by the investors in listed companies, and issued sharesAnd the amount of money raised to determine exactly to what the price issue, offer higher than the final pricing of access to new shares, corresponding to the high bidder acquires shares which market principles. ����Avoid stock boom collapsed in the first trades. Southwest securities (600,369, unit), Deputy Director of the Institute, the Chief Economist Wang Jianhui suggested that on the need for restraining the IPO "three high"Of the system. ����Proposals of intermediaries such as inquiry agencies, securities underwriting agencies hard constraints, so that they can't quote, high price. Investment Bank believe that the problems resolved the IPO higher earnings, investment bank has an unshirkable responsibility. Recommendations on the IPO venture investment banks should shoulder more responsibility to guide institutional investors make you more rational offer.Currently depressed market environment for banks provides a very good reflection on the opportunity to strengthen industry self-regulation, perfect IPO issue is imperative to link risk.