Lock-up shares of IPO shareholders worth 94.651 billion yuan will become eligible for trade on China’s stock market in December, down by 19.564 billion yuan, or 17.13 percent, from 114.215 billion yuan. Lock-up shares of non-IPO shareholders involved in equity division reform and private placement worth 278.831 billion yuan will become tradable, up by 132.285 billion yuan, or 90.27 percent, from 146.546 billion yuan in November. Thus, lock-up shares worth a total of 373.482 billion yuan will be tradable in December, representing an increase of 112.721 billion yuan, or 43.23 percent, from 260.761 billion yuan in November. The growth with more than 40 percent is the highest in this year and also the highest since last July.
138 listed companies will see lock-up shares tradable in December. The lockup on shares of Tatwah Smartech Co., Ltd., Shanghai Anoky Group Co., Ltd., JANUS (Dongguan) Precision Components Co., Ltd. and Henan Mingtai Al. Industrial Co., Ltd. will end at different times in this month. Restricted trading of shares of 13 listed companies will end on Dec. 5, 11 ones on Dec. 9, 17 ones on Dec. 12, 10 ones on Dec. 19, 22 ones on Dec. 26, 11 ones on Dec. 29 and 12 ones on Dec. 30.
In December, 25 companies will lift ban on lock-up shares of IPO shareholders and 113 companies will lift ban on lock-up shares of non-IPO shareholders involved in equity division reform and private placement.
Restricted trading of shares of 34 companies listed on the ChiNext Board will end in December, accounting for 24.64 percent among the 138 firms. Market value of shares of these 34 companies to be tradable is worth 42.981 billion yuan, accounting for 11.51 percent of total value of shares to be tradable in December, which is the second highest within this year. The number of lock-up shares to be tradable of Shanghai Fortune Techgroup Co., Ltd., Thunder Software Technology Co., Ltd. and Jiangxi Fushine Pharmaceutical Co., Ltd. accounts for 172.50 percent, 154.71 percent and 133.97 percent of their tradable A-shares before the end of lockup respectively, whose proportion ranks top three. The top three companies with highest market value of shares to be tradable are Thunder Software Technology, East Money Information Co., Ltd. and Xinjiang Machinery Research Institute Co., Ltd. with stock worth of 7.904 billion yuan, 5.836 billion yuan and 4.887 billion yuan respectively. Based on the third quarterly financial data and closing price of stocks on Nov. 25, Sichuan Cendes Architectural Design Co., Ltd., Qtone Education Group (Guangdong)., Ltd. and Sichuan Troy Information Technology Co., Ltd. are the top three companies with highest PE ratios at 531.40 times, 285.60 times and 282.32 times respectively.
Restricted trading of shares of 42 companies listed on the SME Board will end in December, accounting for 30.43 percent among the 138 firms. Market value of shares of these 42 companies to be tradable is worth 115.25 billion yuan, accounting for 30.86 percent of total value of shares to be tradable in December, which is the highest level within this year as well as the highest record since the establishment of the SME Board. The number of lock-up shares to be tradable of Focus Media Information Technology Co., Ltd., Beijing Sanfo Outdoor Products Co., Ltd. and Der Future Science & Technology Holding Group Co., Ltd. accounts for 598.77 percent, 182.41 percent and 124.66 percent of their tradable A-shares before the end of lockup respectively, whose proportion ranks top three. The top three companies with highest market value of shares to be tradable are Focus Media Information Technology, Der Future Science & Technology and Dalian Zeus Entertainment Co., Ltd. with stock worth of 53.222 billion yuan, 7.558 billion yuan and 4.763 billion yuan respectively. Based on the third quarterly financial data and closing price of stocks on Nov. 25, Sanfo Outdoor Products, Hainan RuiZe New Building Material Co., Ltd. and Xiamen Wanli Stone Stock Co., Ltd. are the top three companies with highest PE ratios at 490 times, 436.89 times and 417 times respectively.
Among the above-said 138 listed companies, the number of lock-up shares to be tradable of Focus Media Information Technology accounts for 598.77 percent of its total tradable A-shares before the end of lockup, which is biggest proportion followed by Hubei Jumpcan Pharmaceutical Co., Ltd. with 357.98 percent and Zhejiang Zheneng Electric Power Co., Ltd. with 355.24 percent. The top three companies with highest market value of shares to be tradable are Zheneng Electric Power, Focus Media Information Technology and Jumpcan Pharmaceutical with stock worth of 59.115 billion yuan, 53.222 billion yuan and 18.966 billion yuan respectively. The market value of all shares which will become tradable totals 373.482 billion yuan, including 151.98 billion yuan from companies listed on Shanghai Stock Exchange, 63.272 billion yuan from companies listed on the Main Board of Shenzhen Stock Exchange, 115.25 billion yuan from companies listed on the SME Board and 42.981 billion yuan from companies listed on the ChiNext Board.
If listed companies face poor performance or their values are overestimated, investors are likely to convert stocks into cash. Seven of the 138 companies, including China National Software & Service Company Limited, Dalian East New Energy Development Co., Ltd., Liaoning Hongyang Energy Resource Invest Co., Ltd., Shenzhen Coship Electronics Co., Ltd., Suzhou Douson Drilling & Production Equipment Co., Ltd., Steyr Motors Corp. and Citic Heavy Industries Co., Ltd., suffer losses in the third quarterly report of this year. In the third quarterly report, performance of Zhongyuan Union Cell & Gene Engineering Corp., Ltd., HuaDian Heavy Industries Co., Ltd., Qingdao Tianhua Institute Of Chemistry Engineering Company Limited, Shanghai Baosteel Packaging Co., Ltd., Jinzhou Port Co., Ltd., East Money Information Co., Ltd., Sichuan Cendes Architectural Design Co., Ltd., Shanghai Zhongji Investment Holding Co., Ltd., Qinghai Salt Lake Industry Co., Ltd. and Guangdong Jiaying Pharmaceutical Co., Ltd. all decrease drastically year on year. Shenzhen Coship Electronics Co., Ltd., Citic Heavy Industries, Suzhou Douson Drilling & Production Equipment and Net263 Ltd. predict losses for 2016 annual report. Based on the third quarterly financial data and closing price of stocks on Nov. 25, PE ratio of 52 companies, such as Tianhua Institute Of Chemistry Engineering, Zhongyuan Union Cell & Gene Engineering, Baosteel Packaging, Cendes Architectural Design, Zhongfu Straits (Pingtan) Development Company Limited, HuaDian Heavy Industries, Sanfo Outdoor Products and Hunan Haili Chemical Industry Co., Ltd., is higher than 100 times, and that of 35 companies, such as Chunghsin Technology Group Co., Ltd., Jiuzhou Pharmaceutical, East Money Information, Tangel Culture Co., Ltd., Inner Mongolia Xingye Mining Co., Ltd., Xiamen 35.com Technology Co., Ltd., Xuzhou Wuyang Technology Co., Ltd. and Hubei Kailong Chemical Group Co., Ltd., ranges between 50 times and 100 times.
Translated by Vanessa Chen
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