Ant IPO is coming soon, too many people want to get on this rich train. Soho, an employee of a financial institution in Lujiazui, Shanghai, discovered that since the end of September, she had been surrounded by fund advertisements for strategic placement of new shares of Ant. From building advertisements to bus stop signs, subway stations and airports, the Ant Placing Fund’s advertisements occupy almost all C positions.
On September 25, 5 “Innovative Closed Hybrid Funds in the Next 18 Months” with the strategic placement of Ant Group’s IPO shares as a selling point went on sale on the Alipay platform. The biggest bright spot of these 5 funds is that they plan to use 10% of the funds to purchase new shares of Ant, and 100% “sell new shares.”
The gimmick of “1 yuan hits the new, 100% win” has stirred people’s hearts and attracted countless investors’ pursuit.
With the temptation to hit new ants, coupled with overwhelming advertising, the five funds quickly sold the “Double 11” momentum. On the day of the sale, the five funds sold 1 billion yuan in 2 minutes and sold in 1 hour. 10.2 billion yuan sales speed.
Among them, the subscription amount of the E Fund’s “E Fund in the next 18 months closed operation hybrid fund” reached the upper limit of 12 billion yuan, and the fundraising was terminated early and the proportional placement was started. In the next few days, three funds from Penghua, China Europe and China Huitianfu raised over 12 billion yuan.
According to the latest data on the Alipay page, more than 10 million people have participated in the purchase of five funds.
Strategic placement fund sale page, picture from Alipay
Since the end of July this year, Ant Group announced the launch of the simultaneous issuance and listing plan on the Shanghai Stock Exchange’s Science and Technology Innovation Board and the Hong Kong Stock Exchange Main Board. The topic of this IPO has been on Sina Weibo hot search several times.
Among them, the most concerned by investors is undoubtedly how Ant Group will continue to create the next wealth creation myth in the capital market.
On the one hand, people talk about how many Ant Group employees will achieve “financial freedom”. On the other hand, more people also want to participate in this frenzy of wealth creation.
The new launch is undoubtedly one of the few ways for ordinary investors to participate in the IPO of Ant Group. Therefore, various fund companies, wealth management platforms, and securities institutions are following the news, and they are targeting the needs of newcomers.
In this regard, a huge whirlwind has formed around this IPO.
Individual investor crazy
“I got up at 2 o’clock in the morning and bought the Ant Funds of E Fund, Penghua, and CEIBS.” An investor in the Ant Strategic Placing Fund said that he mobilized available funds other than the stock market and purchased the Ant Fund. Invest 30,000 yuan.
Soho, who lives in Shanghai, and her husband are both avid participants in the Ant IPO. However, their main battlefield is not in the fund market, but in Hong Kong stocks. It is obvious that the matching fund with only 10% of the amount of ant stocks has been unable to satisfy their appetite, and they hope to directly participate in the new fight.
For this, they started to prepare early. Soho’s husband opened an account in Hong Kong stocks at the beginning of this year, and Soho himself completed the account opening at the end of July.
Since the news of Ant Group’s listing in July, Soho believes that Ant Group’s new launch may be imminent. “According to the previous speed of listing on the Science and Technology Innovation Board, I guessed that the listing process of Ant Group would not be particularly long. It may be listed in October.”
Su Ho and the ants are deeply connected. In 2019, Soho once got an offer from Ant. Although she did not join the job for some reason, she had already felt the value of Ant stock.
Su He revealed that during the salary talk stage, HR mentioned that the options provided by Ant Group to employees are included in the annual salary package at 200 yuan per share, but “the internal repurchase price is 400 yuan per share.”
“It should be a business that makes a profit without losing money. The probability of a good company like Ant breaking is zero.” Soho judged this way.
In fact, IPO newcomers are generally optimistic about the stock price trend of Ant Group on the day of listing.
According to the statistics of GF Securities, the first-day premium rate of the first 25 stocks on the Science and Technology Innovation Board was an average of 139.4%. This makes investors even more looking forward to the performance of the Ant Technology Innovation Board on the day of listing.
An employee of the Ant Group also told All Weather Technology that many people within Ant want to buy other people’s options. Although this behavior is not allowed in accordance with the company’s regulations, private transactions still exist.
In order to maximize profits, Soho and her husband prepared to invest 400,000 yuan in their own funds, and also leveraged financing through brokerages. If the leverage is added, they will prepare about 3 million yuan in new funds for Ant’s IPO.
In Hong Kong stocks, it is a common practice to use leverage to open new shares. On the one hand, investors are to improve their ability to participate, and on the other hand, they can also avoid the limits of foreign exchange control. The annual total amount of foreign exchange purchases is managed, and the annual total amount is equivalent to US$50,000 per person per year.
According to a Hong Kong stock brokerage company, the leverage ratio of a brokerage company to new investors in Hong Kong stocks is generally around 10 times, or even as high as 20 times.
And high leverage also corresponds to high costs. Su Ho revealed that the 10 times leveraged funds she borrowed corresponded to an annualized interest of over 6%.
Even if the cost is high, the demand for leverage has also been amplified under the anticipation of an increase in Ant’s stock price on the first day of IPO.
An insider from Futu Securities told All-weather Technology that the institution has prepared a financing line of 30 billion yuan for investors participating in Ant Group Hong Kong stocks.
In addition to increasing leverage, there is also a public secret among Hong Kong stock marketers—open accounts with multiple brokerages separately, and use multiple accounts to simultaneously open new accounts.
“If you want to increase the probability of winning the lottery, the best way is to open multiple accounts, and then purchase one lot in each account.” Some investors said that it is a very common practice to open more than a dozen Hong Kong stock accounts in order to open a new lot.
However, Soho does not intend to hold Ant stock for a long time. What she wants to earn is the increase on the day of listing.
Intermediaries grab the cake
With the listing of a large number of high-quality companies such as Ant Group on the Hong Kong stock market, intermediaries have ushered in a good opportunity to expand the market.
Although Ant Group is listed on both the Science and Technology Innovation Board and the Hong Kong Stock Exchange, like SoHo, many people choose to go to Hong Kong stocks to make new listings.
A key reason is the high barriers to entry on the Sci-tech Innovation Board. “The creation of a new board requires the qualification to open an account on the science and technology board, that is, to maintain an average daily asset of 500,000 for 20 trading days, and 2 years of trading experience.” An investor from the Hong Kong stock market Ant Group said this requirement For many people, there may be pressure, and he himself is not qualified.
In contrast, to subscribe for new shares in Hong Kong stocks, as long as you have a Hong Kong stock account, there is no requirement for individual stock holdings.
In addition, in the eyes of many investors, the probability of winning a new lottery for Hong Kong stocks is higher.
According to the previous research report of GF Securities, the average winning rate on the Science and Technology Innovation Board is 0.18%, and it has shown a downward trend over time. Since April 2020, the average winning rate has been as low as 0.08%.
In contrast, the winning rate of Hong Kong stocks is much higher.
Statistics show that the average winning rate of Hong Kong stocks in 2019 is 50%-70%, even for very popular stocks, the winning rate is very impressive.
Take Nongfu Spring as an example. On September 7th, Nongfu Spring’s allotment ended. There were 707,532 applicants for the public allotment, and the lottery rate was 12%.
According to people familiar with Hong Kong stock rules, the reason why the winning rate of Hong Kong stocks is higher than that of A shares is related to the Hong Kong Stock Exchange’s new share allocation principle. “Hong Kong uses the principle of giving priority to one lot in each account to allocate new shares. Its core strategy is actually to give priority to each account, so the rate of one lot in Hong Kong stocks is very high.”
Under this circumstance, some brokers in the Hong Kong stock market have begun to use the opportunity of Ant Group to go public to expand their customers.
Some Hong Kong stock brokerages use financing leverage to attract investors, the picture comes from the Internet
Common methods used by brokers include providing financing support. Many brokers claim that they can provide 10 times the financing leverage, and some brokers can even achieve 20 times the leverage.
For example, on September 29, Tiger Securities launched an advance contract event for Hong Kong stocks to hit a new 20 times general leverage. As of October 31st, Tiger new and old users have the opportunity to receive 20 times the general leverage of Hong Kong stocks and the 500,000 quota for new privileges, so that they can leverage more funds and increase the rate of winning new lots. From the time point of view, the activity has obvious individual stock pertinence.
Futu Securities also said that in addition to providing investors with ample financing to make new lines, they support 10 times bank leveraged financing, and they also support zero principal to make new ones. Investors can use Hong Kong stocks, U.S. stocks or A-shares to mortgage their holdings for financing subscriptions to increase their purchasing power.
In addition, Futu Securities also supports dark trading. Dark market trading is also a new product launched by brokerages in recent years for new investors. Its advantage is that stocks can be traded before listing, so that some investors who have not won the new shares can get the opportunity to enter the market, thereby achieving investment goals.
In order to obtain more customers, in some Hong Kong stock investor exchange communities, there are also Hong Kong stock brokerage companies who have released partner recruitment information, throwing out high commissions for trading commissions, wealth management, fund custody and other projects.
However, it is worth noting that it is not easy for Hong Kong stock brokers to acquire customers, because there are still some thresholds for mainland investors to enter Hong Kong stocks, such as the need to apply for a Hong Kong bank card. Currently, only a few banks can directly handle Hong Kong bank accounts for mainland residents, and the threshold is constantly increasing.
“It’s hard to find a card now, and it takes more than a month for the review.” Some investors mentioned that their local Hong Kong bank card requires a Hong Kong employment certificate.
The customer service of a brokerage firm also stated that they can assist users in handling Hong Kong bank cards, but the threshold is to provide a bank flow of more than 30,000 yuan in monthly income.
In this case, some intermediaries took the opportunity to rise.
An intermediary said that they can help users directly connect with Hong Kong lawyers and familiar bank managers to open accounts remotely, so as to quickly apply for Hong Kong bank cards. According to her, the card application through them is much faster-you can promise to complete the account opening in about two weeks.
However, the intermediary fees are not low, each account charges 1,500 yuan, and attorney fees are also 500 yuan.
According to all-weather technology, because some intermediaries themselves are in a gray area, most users are not willing to try.
The controversy behind the hot
A few days ago, Zhou Tianfeng received a sales call-the other party told him that he can enjoy the dividends of Ant’s IPO by purchasing the Ant Strategic Allotment Fund.
However, Zhou Tianfeng was not interested in a few match funds, so he hung up before listening to the other party’s call. In addition to sales calls, in the next few days, Zhou Tianfeng also received sales text messages from the War Match Fund.
Promotional text messages received by some users, with pictures from the interviewee
The ant strategic placement fund has not yet been fully sold, but since this period of time, there have been more and more complaints about the 5 funds on the Internet. The slots are mainly concentrated in the “closed period” and “the proportion of matching Ant Group stocks.” low”.
Zhou Tianfeng also believes that an important flaw of these funds is that they are closed for too long, which will affect the liquidity of funds. “In addition, I just bought the Kechuang 50ETF, so I didn’t consider this strategic placement.” He said.
Some investors are also worried that the uncertainty of Ant Group’s stock price trend in the next 18 months is too great.
In addition, some investors pointed out that the ant allotment of these five funds is only 10%, and the purchase direction of the other 90% is completely out of control. Even if the stock of Ant Group performs well, it does not contribute much to the overall income of the fund.
Therefore, the popularity of the Ant Strategic Placing Fund is actually lower than the expectations of some outsiders.
Judging from the subscription situation of some investors, they originally thought that the subscription success rate would be relatively low, but the final confirmed amount was unexpected-the confirmed amount accounted for more than 80% of the subscription amount, and only a few funds were returned.
Some people are enthusiastic about the ant group’s new launch, while others wait and see.
“Ant is estimated to be unable to make money.” An investor said that whether to participate in the new launch or not depends on the specific valuation of Ant when it goes public.
Some investors even worry about whether Ant Group will become the next PetroChina, Beijing-Shanghai high-speed rail, and SMIC after its listing.
For some avid newcomers, they do not plan to hold shares of Ant Group for a long time.
Su Ho said frankly that for Ant IPO, she only considered short-term. “We bet that we can make money that day, because the first day is guaranteed to have a certain increase, basically the next day will be thrown away.”
Zhou Tianfeng believes that for Ant, the value of its stock investment may eventually be reflected after the ban is lifted.
(Zhou Tianfeng and Soho are pseudonyms)