Brokerage Finance Crazy New Breakthrough Loopholes

Broker collecting financial management

Brokerages gather financial products performance skyrocketing

As of last Friday, Zhejiang merchants Jinhui No. 1 was the fastest growing brokerage financial product in the past month, with a total return of 26.64%, while the net increase in equity fund in the same period was only 9.54%.

"Small collection" product Jinhui 1 has won the second half of last year's securities business performance champion.

This year, the product was mediocre, but between July 8th and July 22nd, the net product value increased from 1.02 yuan to 1.25 yuan, an increase of 22.5%.

By looking at the results of the new placement, we can see that the newly signed new shares of Bai Li is an important reason for the sharp increase in net value of Jinhui No. 1 in July.

The placing results under the Bai Li network show that in July 6th, Zhejiang Merchants Securities "Jinhui No. 1" purchased 800 thousand shares of Baili union under the net of 48 million yuan, quoted 60 yuan / share, and finally got 400 thousand shares.

In July 15th, the Bai Li listed on the Shenzhen Stock Exchange.

Surprisingly, the shares of Bai Li jumped 100 yuan that day, closing up to 86.69%.

In July 27th, Bai Li linked up 131 yuan in its intraday trading, and the 400 thousand shares of the "Jinhui 1" signed the Bai Li, which brought a floating profit of 30 million 400 thousand yuan. On the same day, the net value of Zhejiang merchants Jinhui 1 Rose 16.24%.

"Jinhui 1" latest semi annual report shows that as of June 30th, its asset management scale was only 199 million 800 thousand yuan, and a month's new harvest will "Jinhui 1" net value push up 25%.

This is not the case. Yesterday, the listing of new shares increased by 44.55%, and the share price rose by 6.46 yuan. Zhejiang merchants Huijin No. 1 and No. 2 were all signed 1 million 500 thousand shares. Correspondingly, the profits of the two products reached 9 million 690 thousand yuan.

Coincidentally, in August 5th, Northeast Securities No. 1 net value rose 1 in 1 days. On that day, ipoc listed on the stock market was up nearly 70%. Northeast Securities 1 held 940 thousand shares of Yao Chi poker, with a market value of more than 27 million yuan.

Crack up loopholes in existing laws and regulations

According to the policy, "a single set plan holds a company's issued securities, not exceeding 10% of the net assets of the aggregate plan."

Immediately thereafter, it is stipulated that "the aggregate plan can purchase new shares without setting up the purchase limit, but the amount declared shall not exceed the total cash amount of the aggregate plan, and the amount declared shall not exceed the total amount of the stock issue issued by the proposed stock company."

The seeds of paradox are buried here.

Take Jinhui 1 of Zhejiang merchants as an example, when buying Bai Li, it used 48 million funds to purchase 800 thousand shares, accounting for about 24% of the net asset value of the product.

Because of the breaking up of the new shares in the early stage, the success rate of many new shares has been very high for a period of time, and 48 million of the funds are all possible.

As a result, a smaller brokerage group has achieved more than 10% of its stock market value after its new success.

However, the above mentioned Jinhui No. 1 did not violate the existing policy, because 48 million did not exceed the total amount of cash in the purchase.

Although the final result is that Jinhui 1 has signed 400 thousand shares, and its market value is 22 million, but its net share is still around 10%.

The potential possibility has become a reality, and due to the restriction period of 3 months for the purchase of new shares under the institutional network, the related products have to continue to violate the shareholding in the restricted period.

As of yesterday's close, the market value of "Jinhui 1" held by Bai Li amounted to 45 million 200 thousand yuan, accounting for about 25% of total net assets, far exceeding the upper limit of 10%.

Arbitrage opportunities are not large.

Because of the establishment of 3 months or 6 months as a closed period, the financial products set up by brokerages are different from those of open-ended funds. The collection of financial products by brokerages has made a greater restriction on the purchase and redemption period. Generally speaking, the designated working days of 2-6 natural months after the expiration of the closed period are open periods.

Therefore, holders can only look at the book surplus and cannot redeem it. Investors who want to buy money can only look at the net value soaring in the short term and not enter it.

For example, the product of Jinhui 1 was established in July 1, 2010. The opening date of the product is open to purchase and redemption every 6 months after the establishment of the first 5 working days.

That is to say, in the first 5 working days of July this year, investors can apply for redemption, but in fact, their performance was mediocre, and the net value soared from July 15th.

The net value rose by 16.24% on the day and 5.59% on the 16 day.

However, if investors can get a good rise in the new stock market during the period of good market timing, it will coincide with the opening period of the securities companies. At the same time, they can get a large proportion of new stock placements and obtain new profits indirectly. After all, the scale of the securities business is much smaller than that of the stock base, and the rise in the first day of the IPO can lead to a substantial increase in the net daily value of the products.

According to statistics, from June 14th to the present two months, a total of 44 small and medium board, GEM companies started to purchase under the network.

Among them, there are 18 small and medium sized boards and GEM companies under the net sale results, the emergence of a broker's financial products.

On the whole, the new participation rate of financial products has reached 40.9%.