15 listed companies plan to speculate in Shenzhen Energy
Recently, Sanquan Food intends to use 1 billion US dollars of idle funds for securities investment, which attracted the exchange’s attention letter, and then it changed its investment plan.In fact, it is nothing new for listed companies to invest in securities. Since this year, 15 listed companies have announced securities investment plans.However, the stock trading of listed companies also faces risks. Restructuring, some companies have made considerable gains through stock trading, icing on the cake for the company’s operating performance, and some companies have left the stock market with huge losses.This year, 15 listed companies have announced stocks. Some companies plan to invest 2 billion US dollars. Long-term investment exceeds currency funds. Recently, Sanquan Food announced that without affecting normal operations and effectively controlling investment risks, the company and its holding subsidiariesThe company intends to use idle self-owned funds not exceeding USD 1 billion for securities investment.Among them, 800 million US dollars bank authorized financial management, 200 million US dollars of stocks, bonds, funds and other products investment.Relevant benchmarks have been approved by the company’s board of directors.Since its annual report has not yet been announced, the reporter saw that its monetary funds at the end of last September were only 5.1000000000.In fact, Sanquan Food and Food has been investing idle funds outwards, but the strike only invests in potentially risky bank wealth management or deposit products.In March of this year, Sanquan Foods just bought a bank structured deposit product totaling $ 300 million.This time, the scope of investment was expanded to include securities within the stock market. Since then, Sanquan Food has also established a new securities investment management system.”Stock trading” of listed companies is not new, and Sanquan Food is not the first listed company to announce investment in the stock market this year.According to Sauna and Yewang ‘s incomplete statistics, this year, in addition to financial companies or listed companies with financial license subsidiaries, as of April 15th, 15 listed companies have announced plans to carry out securities that include internal stocksinvestment.Among them, there are many listed companies in Shenzhen Stock Exchange, including 12 main boards, 5 small and medium-sized boards, and 2 GEM companies.Some listed companies are similar to Sanquan Food. Ford only invests in low-risk wealth management products, and now it has begun to expand its investment scope to the stock market.For example, Hengbao has started to use idle funds for investment and wealth management since 2013, but its investment scope only includes low-risk, short-term bank wealth management, trust products and fixed-income bonds, etc., and does not directly invest in domestic and foreignStocks and securities investment funds do not invest in wealth management products whose main investment target is stocks.On April 15 this year, Hengbao issued an announcement that it planned to use no more than 300 million US dollars for securities investment, and the scope of investment also developed into the stock market, including new share placement or subscription, securities repurchase, stock and depository receipt investment, etc.Due to its undisclosed annual report, as of the end of September last year, its monetary funds were 3.732 billion.The other category is the Air Force’s securities investment experience companies, this year increased investment quotas for the stock market.For example, Yongji Co., Ltd. has a securities investment scale of 300 million in 2019, including securities investment in addition to wealth management1.5 trillion; this year’s securities investment quota increased to 3.500 million US dollars, including stocks, funds, bonds and other securities investment quota of 200 million US dollars.Because of its undisclosed 2019 annual report, the reporter saw that as of the end of September last year, its monetary fund balance was 2.435 billion.In addition, Zhidu shares decided in September last year to use no more than 400 million U.S. dollars for securities investment. In January this year, the investment quota was adjusted to 800 million. In March, the company disclosed that it had purchased shares of Guoguang Electric and held 5,384 shares.700,000 shares, investment cost 4.9.6 billion yuan.However, as of the end of September last year, its monetary fund balance was 4.980 billion.Among the companies that have announced securities investment plans, Oriental Seiko has a higher quota, reaching US $ 3.5 billion.The annual investment quota determined by Dongfang Seiko at the initial stage is 2 billion, and the scope is limited to low- and medium-risk financial products.Later, it was stated that this investment plan could no longer meet the company’s current actual needs, so it decided to carry out securities investment business. The supplementary investment range included stock and depository receipt investment, new share placement or subscription, securities repurchase, new third board investment, etc.However, as of the end of September last year, its monetary fund balance was 12.93 billion.Another big investor in the stock market is Hang Seng Electronics.In 2020-2022, the three-year Hang Seng Electronics Project annually uses no more than 6 billion US dollars of idle funds for investment and wealth management. Among them, the investment quota for the capital market stock secondary market is 2 billion US dollars, which indicates that the return to bank wealth management products decline, The company will seek high-quality assets in the capital market.However, as of the end of September last year, its monetary fund balance was 5.133 billion.In addition, there are companies such as Tower Brand Group, Baoxin Energy, Digital China, and Tonghuashun to plan to invest more than 1 billion yuan in securities this year.The relaxation of rules + the attractiveness of A shares has led some companies to speculate in stocks. The enthusiasm for investing in the stock market also comes from changes in regulatory rules.Democracy, the Shenzhen Stock Exchange does not encourage the securities investment of listed companies. For the main board companies, “we do not encourage companies to exceed the actual needs of the military for complex derivative transactions, and companies are not encouraged to use compulsory derivatives to hedge speculation on the pretext of hedging.”Board companies, “disincentive companies to venture investment” (here “risk investment” includes securities and derivatives investment, fund futures investment, etc.).With the promulgation of the new securities law, on February 28 this year, the Shenzhen Stock Exchange issued a new revised “Guidelines for the Standard Operation of Listed Companies on the Shenzhen Stock Exchange (Revised in 2020)” (hereinafter referred to as the “Guidelines”), applicable to the Shenzhen Stock ExchangeCompanies listed on the Main Board and SME Board.The “Guide” changes and adjusts the practices and expressions of listed companies’ securities investment behaviors in accordance with the previous regulations. The “disencouraged” expressions in the ranking only retain one “not encourage companies to engage in derivative transactions for speculative purposes”.Are deleted.The “Guide” also simplifies the procedures. The small and medium-sized board no longer requires securities and derivatives transactions to obtain the consent of directors 2/3 and independent directors 2/3; investment products no longer distinguish between product issuers and are all submitted to the board of directors for investment.The interest of the shareholders’ general meeting shall also be submitted.In addition, the Shenzhen Stock Exchange’s budget stipulates that if listed companies have surplus funds due to the termination of part of the fund-raising projects, and plan to change part of the fund-raising funds into permanent supplementary liquidity funds, they promise not to make venture investments within 12 months after supplementing the liquidity funds.In the newly revised “Guidelines”, there are no subsequent provisions for supplementary working capital of surplus funds.Dongfang Seiko is making investment plan adjustments based on the changes in this regulation.Dongfang Seiko launched a non-public stock offering in 2017, raising a total of 2.9 billion yuan.On March 12 this year, the company disclosed that it planned to raise the remaining funds after the investment project was terminated (about 11.US $ 0.8 billion), all used to permanently supplement working capital, and promised not to make venture investment within 12 months after the implementation of this working capital.Since the original document has been abolished, Oriental Seiko can no longer abide by this regulation, so it is decided to make a securities investment including stock investment.Zhang Wei, chief macro analyst of Kunlun Asset Management, told Sauna and Yewang that the listed company’s investment in the stock market clearly supports or opposes the regulations in the internal supervision department.In overseas markets, especially in Europe and the United States, listed companies basically hold some financial assets.China’s A-share market is developing towards full marketization. It should also allow listed companies to hold certain financial assets, including stocks and bonds.Since the beginning of this year, affected by the new coronary pneumonia epidemic, the global stock market has undergone certain changes, of which A shares are relatively stable.According to winddata, from the beginning of the year to the close of April 16, the Shanghai Composite Index fell by 7.55%, Shenzhen Component Index rose 0.38%, the GEM index rose 11.69%.Zhang Wei said that taking into account the investment income, under the current epidemic may be the impact of physical enterprises breakthrough, listed companies investment entities expected earnings may not be high.Capital will try to find a safe haven. The financial market has been relatively impacted by the epidemic. It may be relatively safe to invest in the financial market. The probability of A shares stabilizing and recovering is also very high. Therefore, some companies will choose to invest in A shares.Shenzhen Energy’s stocks have a surplus of billions of surpluses to dress up performances, and there are also “stock gods” in the past.Those who make billions of dollars also leave huge losses.Taking Shenzhen Energy as an example, according to its 2019 third quarter report, Shenzhen Energy has invested a total of 13 stocks, with an initial investment cost of 40.8.7 billion yuan, with a total book value of 70 at the end of the third quarter of 2019.32 trillion, floating profit is about 30 trillion.The two more successful investments of Shenzhen Energy are Guotai Junan and Midea Group, whose stock value has increased several times: it has invested 1 in Guotai Junan A shares.5.7 billion, the book value at the end of the period rose to 27.1.4 billion yuan; another 183 were invested in Midea Group.220,000 yuan, the book value at the end of the period is 1.5 billion yuan, an increase of 80 times.Securities investment also contributed to the performance improvement of listed companies.Shenzhen Energy’s 2019 performance forecast shows that the net profit attributable to the mother in 2019 is expected to be 13.5 billion – 18.500 million yuan, an increase of 95% -168% over the previous year.The reasons for the company’s increase in performance include gains from changes in fair value of financial assets and increased investment income.Changan Automobile and Shenzhen Energy “Guangsawang” have different investment ideas. They only invested in two stocks. Southwest Securities and Ningde Times also achieved good returns.The total investment cost of Changan Automobile is 11.03 trillion US dollars, as of the end of the third quarter of 2019, the book value of 2 stocks has reached 16.5.8 billion yuan, of which, floating profit in Southwest Securities1.1 billion, floating in the era of Ningde 4.4.5 billion.However, even the stock experts have missed, and the typical representative is Shanghai Rice.Since 2015, Shanghai Rice has started to invest in the stock market, and it has continuously obtained significant investment income in the initial stage. In 2016, it achieved investment income6.7.2 billion yuan, realizing investment income in 20173.2.2 billion US dollars, investment income accounted for a considerable portion of earnings, was named the “share god” of A-share listed companies.Shanghai Wallace mainly invested in two stocks, Xingyuan Environment and Wanfeng Aowei. As these two stocks fell continuously in 2018, Shanghai Wallace’s investment began to suffer huge losses.In 2018, the investment income of Shanghai Rice was -11.1 billion yuan.Taking the process of holding the stock source environment as an example, Shanghai Ryder held a total of 50.38 million shares in Xingyuan Environment through two trust schemes, and the initial purchase price was about 12.26 yuan.In February 2018, Xingyuan’s environment continued to decline and continued to decline after June, resulting in a single-digit decline from more than 20 yuan. The two trust schemes successively fell below the broken line, and Shanghai Ryce added additional funds for positions.But in the end, Shanghai Rice was still “cutting the meat off the field”, and the two trust schemes were terminated early in July 2018.In 2018, the two trust schemes generated a total of -8 investment income for Shanghai Rice.3.5 billion US dollars, a total of -1 gains from changes in fair value.3.4 billion yuan.In 2018, the overall performance of Shanghai Rice also turned from profit to loss, which was attributed to the mother’s net profit of -15.1.8 billion.Due to the huge losses caused by stock trading, Shanghai Ryce renewed its decision to terminate securities investment in the 2018 annual report. The restructured securities investment will gradually withdraw at an appropriate time in the future, and no new securities investment will be made.The investment income of Lanzhou Yellow River exceeds the main business income, the excessive stock trading of listed companies or the erosion of changes in the main business market and the uncertainty of income are the risks that listed companies will face when investing in the stock market. The average price of the company that has announced the securities investment plan has announced the related risk controlMeasures.In fact, the “Guidelines” have already clarified the internal control requirements for listed companies ‘securities investments. Listed companies’ military securities investments and derivatives transactions must be based on reasonable and legal, prudent, safe, and effective principles, establish a sound internal control system, and control investment risks., Practical and feasible investment benefits, including the formulation of strict decision-making procedures, reporting systems and monitoring measures; the company’s board of directors continues to track the progress of securities investment and derivatives transactions and the status of investment security.On the day after Sanquan Food announced that it was planning to invest US $ 1 billion in securities, the SME Board Management Department of the Shenzhen Stock Exchange issued a letter of concern to Sanquan Food.Sanquan Food’s 2019 third quarter report shows that the ending balance of monetary funds is 5.09 trillion US dollars, Shenzhen Stock Exchange requires the company to analyze the feasibility, necessity and risk prevention and control measures of its securities investment, whether it will affect the company’s normal production operations and financial security.Sanquan Food replied that as of April 10, 2020, the unexpired amount of bank wealth management products purchased by the company was 7.200 million US dollars, this fund is the company’s idle funds, which currently belongs to the company’s actual disposable currency funds, the company has sufficient funds available, and securities investment will not affect the company’s normal operation.Sanquan Food has also formulated some risk prevention and control measures, including the establishment of a management system, the principles, scope, authority, internal audit process, internal reporting procedures, supervision of the use of funds, and the responsible departments and persons in charge of securities investment.Made detailed regulations.Guo Yiming, investment advisory director of Jufeng Investment Gu said that under the impact of the epidemic and the general economic downturn, many listed companies may not perform well and hope to “stock” to supplement performance or revitalize funds, but will also face market risks.The risk of the stock market is to compress its uncertainty. After all, the risk and return are directly proportional, and the stock trading of listed companies will also face potential risks.It is understandable if a listed company makes use of idle funds to invest in securities, but if this delays the main business or causes the consequences of interaction, the impact on the main business is also predictable.An example of the main business of stock erosion is the Lanzhou Yellow River.Lanzhou Huanghe itself is a beer production enterprise. It has been investing in the stock market since 2010, and the investment income has exceeded the main business income. The profit and loss of stock trading also affects the company’s performance.The financial report data shows that the net profit of the mother of Lanzhou Yellow River from 2016 to 2018 was -2509.360 thousand yuan, 1623.60,000 yuan and -67.5 million yuan, and the corresponding period of their securities investment gains and losses were -21.46 million yuan, 16.04 million yuan and -9059.40,000 yuan, the change in net profit that can be polished is basically synchronized with the return on securities investment.In 2019, the book profit of Lanzhou Yellow River Securities Investment was 3001.40,000 yuan, the company realized a loss-for-profit, the net profit attributable to the mother was 1563.230,000 yuan.At the same time, the main business of the Yellow River in Lanzhou has exceeded obvious weakness, and the operating income has been sloping since 2014, from 8 in 2013.£ 8.8 billion in 2019 4.55 ppm; the beer business has continued to shrink, with beer revenue falling by 21 in 2019 compared with the previous year.90%, sales also reached 18.54%.Zhang Wei said that if too much capital and profits are spent to “stock speculation”, it will affect the company’s main business from a micro perspective, and will lead to the disengagement of funds from the macro perspective.Listed companies are generally large-scale enterprises, which have obtained capital through the capital market but invested in the financial market. However, those private SMEs that urgently need capital are difficult to list, and it is difficult to obtain financing to put into production, resulting in a distortion of capital allocation.Sauna, Ye Wang Gu Zhijuan editor Yue Caizhou proofreading Li Ming