The first half of 2017 has passed. Statistics show that the A-share market witnessed certain key changes in IPOs, re-financing, trading on the secondary market and the reducing in the holding of industrial capitals. As the IPO became normal in the first half, the size of refinancing in the A-share market decreased 44.54 percent while the decrease in shareholding plunged 73.23 percent.
For re-financing, 196 A-share listed companies conducted private placements and raised a total of 384,656 million yuan in the first half. Seven companies conducted private placements with over 10 billion yuan. Four listed companies, including TBEA Co., Ltd. (600089.SH), implemented allotments and raised a total of 9,434 million yuan. 36 convertible bonds were issued and raised 60,207 million yuan and the refinancing size reached 454,297 million yuan. However, in the same period of 2016, listed companies implemented 366 private placements and raised a total of 773,643 million yuan. 26 convertible bonds were issued with a total size of 29,702 million yuan. On Feb. 17, 2017, China Securities Regulatory Commission (CSRC) revised certain clauses of the Rules on the Non-Public Issuing of Stocks by Listed Companies to curb unordered, excessive and frequent financing by listed companies. Statistics show that the number of private placements decreased 46 percent in the first half and the financing size plunged 50 percent. The size of convertible bonds issued surged 103 percent year on year, Insiders believe that convertible bonds are likely to become dominant financing plans in the A-share market. On the whole, the financing in the A-share market plummeted 44.54 percent from the same period of 2016 with 819,163 million yuan.
In terms of transactions on the secondary market by key shareholders (substantial shareholders, directors, supervisors, senior management and shareholders holding more than 5 percent of the total shares), 1,309 listed companies saw changes in the shares of key shareholders in the first half. 639 companies saw increases in shareholding with a net size of 73,226 million yuan in total. 622 companies saw decreases in shareholding with a net size of 86,754 million yuan in total. The net decrease in shareholding reached 13,528 million yuan in the first half, representing a decrease of 73.23 percent compared with a decrease of 50,533 million yuan in the same period of 2016.
Translated by Star Zhang
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