Why Did The Main Funds Of Youngor Group Withdraw In Large Quantities?

According to the World Clothing, Shoes and Hats Network, the company raised its brand Youngor The news of. According to the announcement issued by Youngor, the total amount of shares held by CSF reached the listing line of 5%. By means of collective bidding, CSF increased its holdings of 680000 Youngor shares in the secondary market on June 5, from 4.99% to 5.01%, triggering the disclosure obligation after listing.

CSF disclosed that it had bought 81.7 million Youngor shares in the six months ended June 4, with the transaction price of 13.54-14.69 yuan per share, which is equivalent to 9.31-10.14 yuan per share after ex rights. On June 8, the news of obtaining the card raising of CSF pushed Youngor up sharply. The stock closed up 4.9% at 10.35 yuan, up 8.4% during the session. However, the main capital flowed out on a large scale. Wind information data shows that to some extent, the net outflow of super large orders and large orders reflecting the fund trend of institutions is nearly 200 million yuan, and the net inflow of small orders reflecting the fund trend of retail investors is 120 million yuan. The withdrawal of main funds at high levels shows that institutional investors are not completely optimistic about Youngor's fundamentals. Interface News previously reported that Youngor has become an investment company after ten years of stock speculation, which has yielded a lot. However, the company's original main business clothing Business continued to shrink, and the gains from stock speculation mainly came from CITIC Securities and other minority stocks. Since the market still disputes the fundamentals of Youngor, why is the stock still increased and invested for a long time by CSF? The essence of the problem is that undervalued blue chip stocks are becoming A-shares market Is a rare category.

So far this year, under the situation that the direction of the Shanghai and Shenzhen market is unclear, various institutions have turned to the defensive mode to pursue the blue chip stocks or the so-called "beautiful 50". This is evident in the performance of sub indexes. Since the beginning of the year, the Shanghai Composite Index has risen by 1.5%, with little change. However, the Shanghai Stock Exchange 50 Index, which reflects the performance of large cap stocks, rose 9.6% in total, and the Shanghai Shenzhen 300 Index, which reflects the performance of blue chip stocks, rose 7.6% in total. The Shanghai Stock Exchange dividend index, which reflects the performance of defensive stocks, rose 9.7%, even more than the so-called "beautiful 50". In contrast, the performance of small cap stocks and GEM was sluggish. The CSI 500 index, which reflects the performance of small cap stocks, fell by 5% in total, the GEM composite index, which reflects the overall performance of all GEM stocks, fell by 11% in total, and the CSI 1000 index, which reflects the Shanghai and Shenzhen super small cap stocks, fell by 13.5% in total. Many large cap blue chip stocks had a low valuation last year, but this year they rose sharply driven by funds.

Ping An (601318. SH) has risen 34.4% so far this year, and the dynamic P/E ratio based on the 2017 forecast earnings per share has risen to 12 times. For financial stocks, this valuation is no longer cheap, only in a reasonable range. SAIC paid dividends generously in the past two years, but the valuation has been rising slowly, with a single digit P/E ratio. Recently, it seems that the stock has been paid attention to by funds and started to accelerate its rise, with the dynamic P/E ratio rising to 10 times. So far this year, SAIC Group has gained 31.7%. Another example is Gree Electric, which is listed on the Shenzhen Stock Exchange. It has risen by 47.2% so far this year, and the dynamic P/E ratio has also broken away from single digits and risen to 12 times. The circulation market value of Ping An, SAIC Group and Gree Electric reached 510 billion yuan, 340 billion yuan and 210 billion yuan respectively. It is impossible to achieve such a large increase in these large cap blue chip stocks without a large amount of capital support. The value of the stock market is too large, and such a big increase in less than half a year can only be because institutions are generally optimistic.

There are many examples like the above three companies, which will not be listed here. The general rise of these blue chip stocks shows that the investment style of A-share market is undergoing progress and transformation. In the past, the theme was the final word, but now the performance is the final word. However, the general rise of blue chip stocks has also brought a problem - undervalued blue chip stocks are becoming increasingly scarce, which may be the reason why CSF allocates Youngor in its portfolio. Since CSF has a large amount of capital, it is impossible to fully allocate stocks with flawless fundamentals. The daily turnover rate of many blue chip stocks is less than 1%, and chips are becoming difficult to obtain. Youngor's fundamentals are controversial, but its performance is not bad. It may also be a helpless choice for CSF to choose this stock to enter the portfolio. It is worth mentioning that the card raising of CSF to Youngor this time was caused by accident, otherwise the market would not know its action of significantly increasing its holdings in Youngor within six months.

In its information disclosure, CSF said that "because the arrival time of bonus shares was later than the ex right and ex dividend change time in the market, the information disclosure obligor increased its holdings of Youngor shares, which led to this equity change." To put it simply, traders may have made an "own dragon". Youngor's 2016 distribution plan is to give 5 yuan in cash for every 10 shares converted into 4 shares. The date of ex rights, ex dividend and dividend payment is set to be June 5, but the listing of the converted shares is on June 6. This time difference has become the key to the "accidental" brand raising of CSF.

Before the listing, CSF held 127.6 million Youngor shares, accounting for 4.99%. At the time of ex right and ex dividend, the trading system showed that Youngor's total share capital increased from 2.56 billion shares to 3.85 billion shares. However, since the transferred shares could not be received until the next day, the holding of CSF still showed 127.6 million shares, representing 3.56%. The traders of CSF may see that the shareholding ratio is far from reaching the 5% listing line, and therefore increased their holdings. The transfer of shares to the account book on the next day led to the holding of shares breaking through the listing line. Many financial institutions will disperse their assets when investing to avoid touching the 5% listing line or entering the top ten circulating shareholders. CSF is no exception, because touching these regulatory boundaries will not only lead to more disclosure requirements, but also expose its own capital movements to counterparties.

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