Many State-owned Assets, LED Listed Companies Can Survive?

- Nov 05, 2018-

In recent years, financing channels have shrunk, more and more shareholders of listed companies choose to obtain cash flow through convenient equity pledge. At this stage, it is almost to the extent of "no shares without pledge", and the pledge ratio of many major shareholders of listed companies has reached 100%.——LED lighting

According to Aladdin News Center statistics, in the LED industry, most listed companies have pledged equity, but the pledge ratio of most companies is below 30%, the risk of pledge is relatively controllable. However, there are nine companies whose share pledge ratio exceeds 80% among controlling shareholders, actual controllers and their concerted actors, including Qin Shang Share, Ju Fei Photoelectric, Lianchang Photoelectric, Lianchang Photoelectric, Shellett, Jiawei Share, Wanrun Technologies, Dazu Laser, Dehao Runda, etc. (For details, see the previous article: LED Listed Company Mine Clearance Manual: Who is exploring the edge of the stock pledge explosion warehouse?)

Recently, the stock market has been falling and falling continuously, and the risks caused by equity pledge financing have been highlighted. The risk of equity pledge by major shareholders is particularly severe, even facing the risk of bursting positions. The major listed companies are generally in liquidity dilemma, which has a serious negative impact on the stable and healthy development of the entire financial market and the real economy. Resolving the pledge crisis has become a pressing matter of the moment.——LED lighting

In order to mitigate the risk of equity pledge, the governments of Guangdong, Jiangsu, Zhejiang, Fujian, Sichuan, Hebei, Henan and Shandong have begun to promote the issue of state-owned capital assistance to help local listed companies with development prospects ease the difficulty of equity pledge. Among them, more than a dozen provinces and municipalities nationwide have recently launched or brewed a rescue plan, starting with equity and creditor's rights, to set up special funds to help listed companies. According to rough statistics, the size of the relief fund has exceeded 100 billion yuan.——LED lighting

Generally speaking, the local rescue schemes mainly include equity rescue, creditor's rights rescue and merger and acquisition reorganization. Let's look at the specific rescue schemes of provincial and municipal governments.

Shenzhen: "risk sharing" scheme

Shenzhen recently set up a special group to arrange tens of billions of special funds. Starting from creditor's rights and equity, Shenzhen A-share listed companies can reduce the risk of stock pledge in a market-oriented and professional way. Shenzhen State-owned Enterprise Platform also provides liquidity support to listed companies or actual controllers to mitigate capital risks by means of entrusted loans, bridge loans, loans to actual controllers, pledged creditor's rights by transfered stocks, and raising the rate of stock pledge.——LED lighting

Guangzhou: many brokerages are ready to join hands with state assets to explore the way to bail out businesses.

Several brokerages in Guangzhou said that they actively participated in the special rescue business of equity pledge of Tanlu listed company, but the specific plan is still under discussion. On October 15, the relevant government departments in Guangzhou have obtained a list of related private listed companies with liquidity risk caused by high pledge rate from the local regulatory authorities.——LED lighting

Shunde District of Foshan: special funds to be arranged

Shunde is currently considering a plan to alleviate the risk of equity pledge of local listed companies. It plans to arrange special funds to reduce the risk of equity pledge of local listed companies and improve the liquidity of listed companies from the aspects of creditor's rights and equity. According to the preliminary scheme, the core content of the support scheme is also to provide liquidity support to listed companies or actual controllers through financing support, debt acquisition and equity acquisition.——LED lighting

Dongguan: plans to set up a listed company to develop investment funds

Dongguan City plans to set up a listed Dongguan Enterprise Development Investment Fund. The listed Dongguan Enterprise Development Investment Partnership (Limited Partnership) has been registered with Dongguan Administration for Industry and Commerce.——LED lighting

Shantou: setting up a joint development fund

With the joint investment of Shantou State-owned enterprises, Haitong Securities and Yihua Group, a joint development fund will be set up with a scale of 5 billion yuan and an initial scale of 1 billion yuan to help prospective local listed enterprises in Shantou alleviate the difficulty of equity pledge.——LED lighting

Zhuhai: cooperation with Shenzhen to set up a billion billion parent fund

Financial investment institutions such as Zhuhai Fund, Shenzhen Kupeng Capital and Xingen Capital will jointly sponsor the establishment of the "Guangdong, Hong Kong and Macao National Strategic Emerging Industries Benefit Mother Fund", with an initial scale of 10 billion yuan, focusing on the development of new materials, new energy, financial technology, high-end manufacturing, life sciences and other strategic innovations. Promote industry.——LED lighting

Zhongshan: setting up a relief fund for listed companies

The relief fund set up by Listed Companies in Zhongshan is 5 billion yuan. Meanwhile, led by Zhongshan Financial Bureau, a special working group was formed by Zhongshan State-owned Assets Commission and other relevant departments to study and promulgate relevant measures to support the listed companies in the jurisdiction and to mitigate the liquidity risk of listed companies.——LED lighting

Haidian District, Beijing: launching the establishment of a support fund for the development of high quality technology enterprises

Haidian District of Beijing is a state-owned and Dongxing Securities Corporation, which initiated the establishment of a fund to support the development of high-quality science and technology enterprises. By transferring no more than 10% of the total equity of listed companies, it helps private science and technology listed companies to mitigate the risk of stock pledge. Among them, the scale of the fund is 10 billion yuan, the first phase of 2 billion yuan has been completed fundraising.——LED lighting

Xicheng District, Beijing: to initiate the establishment of Beijing's new dynamic high quality enterprise development fund

The two levels of Beijing municipal government guide the mutual participation of funds, actively introduce cooperative financial institutions and other social capital, and provide financial support to listed companies by means of equity and convertible bonds, so as to alleviate liquidity risk of listed companies. The fund will design a scientific and reasonable investment plan according to the actual operation situation of listed enterprises, without seeking controlling rights, interfering in the normal operation activities of enterprises, holding shares in stages, and withdrawing in time once the liquidity crisis has been resolved. The fund, with a scale of 10 billion yuan, is mainly invested in high-quality private listed companies that focus on entity operation, have good performance and temporary liquidity crisis.——LED lighting

Chengdu: establishing a helping fund for listed companies

Chengdu has set up a 10 billion yuan listed company assistance fund to provide financial support to listed companies and actual controllers by means of equity and creditor's rights, so as to mitigate the liquidity risk of listed companies or actual controllers. It also supports listed companies from many aspects such as industry, finance and fiscal policy.——LED lighting

Zhejiang Province: setting up new power fund of Zhejiang Province

Zhejiang State-owned Capital signed an agreement with Agricultural Bank of China Financial Asset Investment Co., Ltd. and Agricultural Bank of China Zhejiang Branch to jointly establish "Zhejiang Emerging Power Fund". The cooperative investment target of the fund is 10 billion yuan and the initial scale is 2 billion yuan. The fund will invest in Listed Companies in the province, especially private listed companies, in a market-oriented and legalized way. At present, nearly 10 key enterprises have been traced and judged.——LED lighting

Hangzhou: plans to support listed companies in the jurisdiction have been deliberate

Hangzhou mainly relieves the listed companies and the state-owned capital by means of low interest or even interest-free loans. According to media reports, Hangzhou has prepared a plan to support the listed companies in its jurisdiction, but so far it has not been formally written. It is reported that Hangzhou's plan at that time was similar to Shenzhen's operation mode.——LED lighting

Hunan Province: to promote the establishment of equity investment industrial fund of listed companies

Hunan formulated rescue plan mainly includes four points: first, to take the lead in promoting the establishment of equity investment industrial fund of listed companies as soon as possible; second, to provide liquidity support to prevent the credit risk caused by the liquidation of stockholders'stocks; third, to coordinate financial institutions to provide support to alleviate the pressure of equity pledge by the actual controllers of enterprises and the financing of enterprises for operation. Pressure; the four is to help the leading enterprises in strategic investment areas or to promote strategic cooperation. Hunan's aid fund will be more than ten billion yuan, but the plan has not been finalized.——LED lighting

Henan: equity cooperation + liquidity support

Henan state-owned listed companies mainly rely on equity cooperation, in addition to providing liquidity support for listed companies. Many listed companies in Henan Province have announced cooperation with local state-owned assets to effectively alleviate capital pressure.——LED lighting

Xiamen: to set up more than 10 billion special fund

Recently, Xiamen intends to set up more than 10 billion special funds to actively resolve the risk of equity pledge of Listed Companies in the way of "bond-equity linkage". It is reported that the special fund will include "relief fund" with financial investment as the leading factor, social capital participation, market-oriented "equity (bond) fund for joint development" and "strategic Development Fund for state-owned enterprises" led by state-owned enterprises.——LED lighting

Tonghua: to set up the 5 billion development fund

Tonghua City of Jilin Province intends to set up a 5 billion yuan scale fund to support the development of listed companies and fully support the development of private economy. The fund will be jointly funded by two municipal and municipal governments, and will actively introduce financial institutions and other social capital. According to the actual operation of each listed company, the fund will formulate a scientific and reasonable investment plan, not seeking control rights, not interfering in the normal business activities of the enterprise, stage shareholding, once the liquidity crisis is resolved, the enterprise will withdraw in time.——LED lighting

In addition to the rescue plans of local governments, the central bank released additional loans and rediscounts of 150 billion yuan, and guided the establishment of bond financing support tools for private enterprises. Preliminary estimates indicate that the scale will reach 160 billion yuan. Eleven securities companies have set up a total scale of 100 billion yuan of capital management plan, with a comprehensive rescue fund of nearly 500 billion yuan.——LED lighting

Among them, several LED companies, such as Joint Construction Optoelectronics, Wanrun Technology, Lehman Stock and Keheng Stock, are also in the ranks of being rescued. Jiawei Stock previously indicated that it had submitted its application on the investor interaction platform.

Listed companies are an important force in the economic development of provinces and cities. If a large number of high-quality listed companies fall due to the risk of equity pledge, it will not only hurt the real economy, but also cause market panic. To a certain extent, state-owned capital assistance has relieved the large-scale enterprise pledge crisis and alleviated investors'concerns about the outbreak of equity pledge risk. However, this is only an emergency measure. In the future, it is necessary to increase the financing channels of enterprises in order to meet the needs of production and operation.——LED lighting

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