Netease Launched The First Public Offering Fund In Hongkong For Two Times

For the fund, the two listing of stocks in NetEase and other stocks is a feast.

In June 1st, NetEase announced the launch of Hongkong's initial public offering and the issuance of 171 million 480 thousand common shares.

At the same time, China's stock market is ushering in a cycle of return. Jingdong will also be listed in Hong Kong for the two time in the near future. In addition, Baidu, Ctrip and so on have also heard the news of the two listing of Hong Kong stocks.

The industry believes that in the context of the recent tightening of US regulatory policy and the creation of conditions for the return of stocks in the AH market system reform, the future stock return will accelerate further.

For the fund, the two listing of NetEase and Jingdong is a feast. A number of public offering and private placement interviews reported by the economic news reporters in twenty-first Century indicated that they would participate in the new competition.

"Our QDII will take part in the two launch of NetEase and Jingdong in Hongkong." In June 1st, the International Department of a fund company said, "NetEase and Jingdong are high quality core assets. Fighting new opportunities is a good opportunity."

A new feast

"QDII will generally participate in the two listing of stocks in Hongkong, and of course, it depends on whether the issue price is attractive." Yang Delong, chief economist of Qianhai open source fund, said that the two issue price would be more attractive if it was cheaper than the US stock market, and the fund's initiative would be higher.

It is appropriate to participate in NetEase and Jingdong's two listing. A fund manager of a large fund company responsible for investing in Hong Kong stocks said, "however, the discount of the issue price may be only two or three points. The discount may be very low, and a certain purchase cost must be paid." It can not be said to be IPO (initial public offering), actually it is the two time listing (secondary public offering), so it is more like earning a new money rather than making a new kind of money.

NetEase, Jingdong and other stocks listed in the two hit new, and also attractive to private placement.

"We will participate in the two listing of shares in Hongkong." In June 1st, Li Jinlong, general manager of the Reagan fund, said: "NetEase and Jingdong have a high reputation. It is expected that the new games will be relatively popular, and the probability of breaking down after listing will be very low."

However, Xuan Jia financial CEO Lin Jiayi said, "I think that the price is lower than the reasonable valuation to have investment value. At present, the market is very hot, the stock price has already contained many sentiments raise the valuation promotion, at this time participates in the new competition, the performance price ratio is not high. But if the enterprise is in the head of the industry or even monopolized, long-term certainty will also highlight its long-term investment value.

Lin Jiayi believes that the return of China's stock market is only a few opportunities for high-quality enterprises in Hongkong. But apart from the fundamentals, it is necessary to have enough safety margin to have long-term investment value. Short term market sentiment can lead to short-term emotional price difference. If it is based on this logic to participate in the new game, it will often lead to losses, so we should consider the fundamentals and the valuation water level comprehensively.

What will be the two listing price of NetEase that investors are most concerned about?

According to the announcement, the public offering price of NetEase's two public offering will not be higher than HK $126 per share.

In this regard, Dong Haibo, a macroeconomic researcher at the grid, said that the price ceiling of NetEase's retail sale price was HK $126. According to last Friday's closing price of US $382.9, and a ADR corresponding to 25 common shares, the conversion price corresponded to US $118.7, or 6%. It is worth holding for a long time.

As for the performance of China's stock market after returning to Hong Kong, the Alibaba is an example of Fu Road Securities. In November 2019, the number of subscriptions on the Hong Kong stock market during the public offering period in November 2019 was over 215 thousand, the first day's gain was 6.88%, and the turnover exceeded 10 billion Hong Kong dollars. According to the issue price of HK $176, the cumulative increase was nearly 30%.

Timing well

China's stock market has gradually returned, and domestic funds are also expected to usher in a good timing.

General manager of the International Business Department of Penghua Fund, yopin Nian believes that the fund products that are most benefited from China's stock return are the QDII funds of the domestic Internet theme.

The reason is that first of all, Jingdong and NetEase are pricing foreign investors at the present stage, while foreign investors are low priced. When they return to Hongkong, they will help to raise their valuations. Secondly, only QDII funds can conveniently invest in the Internet.

So, will the other funds be willing to configure these return stocks after the new strategy is launched?

"The fund's approximate rate will be allocated to the stock return. Now is a good opportunity to configure, with the quality of stocks into the stock index, active funds and passive funds will gradually increase the allocation. Liu Furong, chief investment officer of international business department, said.

Liu Furong believes that domestic funds are subject to investment target restrictions, and long-term low allocation of shares in the US market, leading enterprises in the Hong Kong stock market scarce performance and quality scale, and new funds are also actively involved. The stock return will be the focus of the Hong Kong stock market in June.

"In the investment strategy, we select stocks, hoping to effectively reduce the break rate and improve the winning rate, and join the new shares trading, buy stocks at a low price, long-term holding period, can enhance the probability of profit." Liu Furong said.

Yang Delong said, "the allocation of stocks in the regression, the main consideration is the price and fundamentals. In the regression, the fundamentals are good, there is room for growth, the price is attractive, there should be a lot of capital allocation."

"Now it is undoubtedly a very good strategic allocation opportunity for the Hong Kong stock fund." Dong Haibo said.

Dong Haibo pointed out that Hong Kong stocks have been historically low valuations, and after the easing of liquidity problems, the room for upvaluation has been opened. Chinese stock market has been recognized by the market, especially the technology and Internet Co which share the development dividends of the mainland. The valuation is relatively high, and there are just a large number of such companies. Therefore, the stock return can effectively lift the valuation of Hong Kong stocks, drive market sentiment, attract more capital into the Hong Kong stock market, and promote the performance of the Hong Kong stock fund.

Li Jinlong also believes that after the return of the well-known stocks, it is easier to attract funds from the south, and from the Hong Kong stock market to the Hang Seng Composite Index to attract passive investment funds, and to attract Hong Kong stocks to attract South capital, there is a time course. Every step will attract incremental funds to buy these stocks. Therefore, early participation in holding opportunities is greater than risk.