The Pace Of Issuing New Shares In The A Share Market Slows Down

New shares are not terrible. What's terrible is that the market is scattered.

In March 1st this year, the SFC approved the first application of 8 enterprises in accordance with statutory procedures.

Among them, there are 3 Shanghai Stock Exchange, 2 SME board and 3 gem.

According to institutional statistics, the total financing of these 8 enterprises is not expected to exceed 4 billion yuan.

In fact, since the beginning of this year, the rhythm of IPO issuance in the A share market has been relatively relaxed.

Among them, before that, the SFC approved the two batch of IPO approvals, namely, the first application of 7 enterprises in January 19th this year, and the first application of 9 enterprises in February 16th this year.

In other words, since the beginning of this year, the SFC has approved a batch of enterprises for one month.

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However, looking back at the rhythm of IPO issuance between 5 and June last year, it seems relatively irrational.

Among them, since May last year, the market has gradually changed the issue of IPO to the two batch approved for a month.

In addition, the pace of IPO accelerated, but also accelerated the speed of IPO approval of some large enterprises.

What is worth mentioning is that, at present, the A share market is still using the prepayment mechanism.

It can be seen that in the context of IPO's accelerating pace, in fact, it also speeds up the diversion of market funds.

It is undeniable that the relatively irrational IPO issuing rhythm at that time also brought hidden worries for the subsequent stock market decline.

Among them, in the bull market, because of the continuous activation of market funds, and combined with the continuous influx of new liquidity, this created a large number of "ammunition" for the stock market.

In this regard, under the bull market, the rhythm of IPO increases slightly, and will not have a big impact on the market, but too fast issuing rhythm will stifle the bull market outcome.

So far, in this environment, the rational use of market-based means to regulate the operation of bull market will undoubtedly test the wisdom of managers.

However, under the bear market situation, the stock market is mostly driven by stock funds.

At the same time, in the market investment confidence continues to slump, it is easy to play the role of "magnifying profits and reducing profits".

In this regard, under the bear market situation, the market can hardly afford too much bad pressure.

For the issue of IPO, although the pace of its issuance has been eased, the psychological impact on the market is far more than the actual impact.

Fortunately, this year

The new IPO rules have been implemented, including the cancellation of the pre payment purchase mode, that is, the signing of the new payment rules will bring about a big change to the new rules of the market.

Affected by this, the pressure on the diversion of new shares to the market stock funds has been significantly reduced, and the market utilization of funds has also been greatly improved.

However, the issue of new shares is always inseparable from the diversion of stock funds, especially under the bear market situation, the impact of IPO on the hearts of the market is more significant.

It can be seen that in the current market downturn, the IPO is not the most frightening thing, but the market has been dispersed.

"Cheng Yi capital, losing funds" is a true portrayal of the A share market.

Looking back 14 or 15 years

Performance is also closely related to the market capital situation.

Thus, in the second half of 15 years, with the vigorous progress of the "deleveraging" and "de bubble" process, the impact of market capital on the stock market suddenly dropped, and the focus of the stock market also moved downward.

It is undeniable that the speed of new issue will affect the stock market's fluctuation to a certain extent.

However, for bull market and bear market, IPO will have different impact on the market.

Nowadays, for the A share market, which has undergone a vigorous and vigorous "deleveraging" and "de foaming", it is indeed necessary to have a long repair process to restore the already slack market hearts.