Share the QR code < / P > < p > with wechat scanning code to friends and circle of friends < / P > < p > Economic Observer reporter Cai yuekun & nbsp < p > only 8 cents < p > < / P > < p > on August 27, China Telecom (601728. SH) ended its sixth trading day of A-share listing with a closing price of 4.61 yuan, only 8 cents from the issue price of 4.53 yuan / share < p > "Big Mac" China Telecom landed in a shares on August 20, and its share price soared 35% on the first day of listing, reaching a maximum of 6.52 yuan. However, in the week from August 23 to 27, it suffered two consecutive days of limit decline. After three trading days, the stock price still fell step by step and was on the verge of breaking < p > as of the closing on August 27, the total market value of China Telecom A shares was 421 billion yuan, and the share price has dropped nearly 30% from the highest point on the first day of listing on August 20. The total market value is nearly 600 billion yuan compared with the highest point, evaporating more than 170 billion yuan. In addition, the share price of China Telecom H shares (0728. HK) also continued to decline, closing at HK $2.75 as of August 27 < p > in an interview with reporters on August 24, the staff of the Investor Relations Department of China Telecom said that the stock price trend of the secondary market is affected by multiple factors, and the valuation of the company by domestic investors still needs a process of familiarity and understanding. It is hoped that the value of the company can be recognized by investors in the future. Moreover, it has been stated in the company's listing announcement and prospectus that within 30 days after listing, if the stock price is lower than the issue price, the "green shoe mechanism" will be started to stabilize the stock price < p > China Telecom announced on August 25 that the deviation of the closing price of the company's A-share trading in two consecutive trading days on August 23 and 24, 2021 exceeded 20%, which belongs to abnormal fluctuation of stock price according to the relevant provisions of the stock trading rules of Shanghai Stock Exchange < p > China Telecom said that the company's current operation is normal and there is no major information that should be disclosed but not disclosed. If the share price falls below the issue price, the company will take a series of measures to stabilize the share price < p > however, market participants are not too surprised by the continuous decline of China Telecom, even near the issue price. With regard to the performance of Telecom stock price trend, Wang Jiyue, a senior investment banker, said in an interview with reporters that on the one hand, it was not surprising that China Telecom fell by the limit for two consecutive days after its listing rose sharply. It rose too much on the first day, and a large number of funds chose to take profits the next day; On the other hand, compared with Hong Kong shares, China Telecom A shares currently have a high premium. After all, the price difference between a shares and Hong Kong shares is still very obvious < p > how high is the probability of China Telecom falling below the issue price? Will the "green shoe mechanism" be launched? Will China Telecom's market performance after listing affect China Mobile's return to a listing? A series of problems have attracted the attention of investors < p > if it breaks, it will start the "green shoe mechanism" < / P > < p > on August 20, 2021, China Telecom officially landed on the main board of Shanghai Stock Exchange, with an issue price of 4.53 yuan / share and an issue P / E ratio of 20.18 times. The number of shares initially issued was 10396135267, and the total amount of funds raised was RMB 47.094 billion < p > at the same time, China Telecom granted the co lead underwriters an over allotment option (or "green shoe mechanism") of no more than 15.00% of the initial number of shares issued. If the green shoes are fully exercised, the total number of shares issued will be expanded to 1195555267, with a corresponding total raised capital of 54.159 billion yuan, becoming the largest IPO project in terms of the number of a shares issued and the scale of fund-raising in recent 10 years < p > from the performance of the semi annual report, China Telecom achieved good growth in the first half of the year. From January to June 2021, the company achieved an operating revenue of 217.547 billion yuan, an increase of 13.05% over the same period last year; The net profit attributable to the shareholders of the issuer was 17.743 billion yuan, an increase of 27.20% over the same period last year; After deducting non recurring profits and losses, the net profit attributable to the shareholders of the issuer was 16.4 billion yuan, an increase of 13.31% over the same period last year < p > from January to June 2021, the net cash flow from China Telecom's operating activities was 68.382 billion yuan, an increase of 2.55% over the same period last year; The net cash flow from operating activities per share was 0.84 yuan, an increase of 2.55% over the same period last year < p > Why do the stock prices of the 100 billion market capitalization giants with good financial reporting indicators suffer heavy falls one after another < p > on August 24, the reporter of the Economic Observer called China Telecom for an interview. The staff of the Investor Relations Department of China Telecom told the reporter that the stock price trend of the secondary market is affected by multiple factors, and domestic investors still need to be familiar with and understand the valuation of the company. In addition, the price difference between a shares and Hong Kong shares exists for a long time, which is related to the overall valuation, investor structure and style and the overall market environment of the two markets. The issue price of the company's a shares of 4.53 yuan is determined through offline inquiry from professional institutions < p > in addition, the person also said that the share price in the secondary market is affected by multiple factors. The company's performance in the first half of the year showed an accelerated growth momentum and was full of confidence in the development of the whole year. The company will continue to do a good job in business development, strengthen communication with investors, actively listen to opinions and suggestions, and enhance the transparency of the company. The company pays attention to the stock price trend and investor returns. The A-share issuance has set up a "green shoe mechanism", and has formulated a plan to stabilize the A-share price within three years after the A-share listing in accordance with domestic laws and regulations < p > according to the "Shanghai stock exchange investment and education", green shoes (hereinafter referred to as "green shoes mechanism") is a right granted by the issuer to the underwriter according to the underwriting agreement, which is a flexible mechanism arrangement. The underwriter who has obtained this right may over sell no more than 15% of the shares issued this time at the same price. The final result of over allotment shall be determined after the end of the post market stability period (generally 30 natural days from the date of listing) according to the market conditions < p > specifically, in the stable period after the listing of shares, if the secondary market price of shares is higher than the issuance price, the underwriter can exercise the green shoe and ask the issuer to issue a corresponding number of shares, so as to increase the supply of the secondary market; If the performance of the secondary stock market is weak, the Underwriters will use the funds raised from the over allotment of shares to buy a corresponding number of shares from the secondary market and reduce the number of shares circulating in the secondary market to support the stock price performance. In this way, with appropriate trading strategies, the exercise of the green shoe mechanism can slow down the decline of the stock price to a certain extent or maintain the stock price at a level not lower than the issue price < p > with regard to the trend of Telecom stock price, Wang Jiyue said that China Telecom's two-day limit was related to its excessive increase on the first day and a large number of funds chose profit taking the next day. Because this issue has a "green shoe mechanism", or because of the guarantee of this mechanism, it gives some capital speculation confidence < p > the progress of operators returning to a or accelerating < / P > < p > before China Telecom's A-share listing, it was abandoned by investors. August 12, ?
2023-03-22 10:04:42