On August 26, 2014, Hong Kong, Hengda Real Estate Chairman Xu Jiayin (middle). Data map
The development of Langfang increased by 66% in seven days, and the daily limit of Jiakai City for three consecutive days. As the stocks in the early stage of the construction rose across the board, Evergrande has almost become the "golden sign" of this round of rebound after the unexpected "raid" Vanke. On the 8th, the Shanghai Composite Index returned to 3000 points.
For Vanke, Evergrande has also made great strides. On the evening of the 8th, Vanke A issued a reminder announcement confirming that Evergrande had completed its first placard for the company, which cost a total of about 9.968 billion yuan.
Apart from the excitement, what the market is most concerned about today is: why Evergrande, which already has a Hong Kong stock listing platform, spends a lot of money on A-shares? Behind its high-profile positions, is it financial needs or resource reserves? After targeting real estate, football, grain and oil, will the brightly colored "Xu style" set off another storm in A shares? Of course, the most important question is how much Evergrande’s financial strength is, how much money can it invest in A shares?
Low-key for many days
While the market is speculating whether Evergrande will stop at the offline placard, Vanke A issued a reminder announcement of changes in shareholders' equity last night, confirming that Evergrande has increased its shareholding ratio to 5% and completed the first placard. And this also means that for at least the next six months, Evergrande will dance with all parties in the struggle of "Whose Vanke".
Consistent with the previous report on the Shanghai Securities Journal "Whose Vanke" added another player Evergrande to gain profits", yesterday’s announcement showed that Evergrande began to build positions on July 25. From July 25 to 29, Evergrande’s total It bought Vanke A shares worth 3.368 billion yuan, which accounted for 33.79% of its total funds raised this time.
At that time, the focus of the market was still the struggle between Vanke's management and Baoneng, and there was no idea about Evergrande's entry. In fact, Evergrande continued to increase its holdings rapidly from August 1st to 3rd. When the news came out on August 4th, the main part of Evergrande's position was basically completed.
However, due to the rapid rise in Vanke A's share price after the leak, the overall cost of Evergrande's placard has to increase. When acquiring 4.68% of the equity, Evergrande’s holding cost was only 17.62 yuan per share, and after making up the remaining 0.32% of the equity, Evergrande’s holding cost has increased to 18.06 yuan per share.
Although the cost of holding positions has been raised, for Evergrande, the continuous rise of Vanke A's share price has resulted in huge floating profits from early purchases. According to the calculation of the reporter, based on the closing price of Vanke A yesterday, Evergrande has obtained a floating profit of 2.103 billion yuan in this round of placards, with a return rate of more than 20% during the period.
16 billion invested and 8 billion earned
As an "A-share newcomer", Xu Jiayin's ability to make money seems to be the same as when he traded football.
Including Vanke, Xu Jiayin invested about 16 billion yuan in A shares in just a few months. According to yesterday’s closing price, the market value of his A shares has increased to about 24 billion yuan. Is 50%, far exceeding the market level over the same period.
According to the statistics of reporters, up to now, Xu Jiayin has bought the shares of 13 A-share listed companies on their two platforms, Evergrande Life and China Evergrande (renamed from Hong Kong stock Evergrande Real Estate), calculated based on yesterday’s closing price , Its total stock market value is as high as 24.252 billion yuan.
Among them, Evergrande Life is responsible for "diversifying investment." There are currently ten A-share companies in the shareholder list, namely Zhiguang Electric, Guangdong Hongyuan A, Jinke, AVIC, Bauing, Gold Mantis, Century Tour, Tengda Construction, Jingyuntong, Pinggao Electric Wait. However, Evergrande Life's holdings in the above-mentioned subject matter are relatively dispersed, at most it can only buy 4.35% of the total share capital (for Guangdong Hongyuan A), and most of its shareholding ratio is only above 1%, and the characteristics of insurance capital allocation are more obvious .
In contrast, China Evergrande is "highlighting the focus." Up to now, it holds 5%, 15% and 52.78% of the shares of Vanke, Langfang Development and Kakai City through its subsidiaries. Except for Vanke, Evergrande is already the largest shareholder of the other two companies.
Sufficient “grain storage” on the two platforms
Evergrande’s rapid sweeping of stocks in A shares is not only affected by the strong “Xu’s style”, but is also inseparable from the company’s own strong financial strength.
According to the 2015 annual report disclosed by China Evergrande, as of the end of 2015, its assets reached 757.04 billion yuan (RMB, the same below), of which the total cash (including cash and cash equivalents and restricted cash) was 164.02 billion yuan, plus For the unused bank credit lines at the end of the period, China Evergrande’s capital pool is approximately 318.5 billion yuan.
Abundance on hand is inseparable from the continuous financing of China Evergrande in 2015. According to rough statistics from reporters, the company issued US$1 billion in senior notes last year, completed 820 million shares to raise HK$4.6 billion through allotments, issued 20 billion yuan of domestic corporate bonds, and raised 20 billion yuan through domestic private placement bonds. In addition, China Evergrande has also stepped up its efforts in sales collection and other aspects. Last year's collection was 152.3 billion yuan.
It is not difficult to see that Xu Jiayin attaches great importance to fundraising while expanding its scale. It was the “grain reserve” in 2015 that made it easy to operate in the A-share secondary market this year.
On the other hand, from the perspective of Evergrande Life Insurance, since its official listing on November 22, 2015, it has learned from the emerging insurance companies such as Anbang and Qianhai in the development model. According to the data disclosed by the China Insurance Regulatory Commission in the first half of the year In the first half of this year, Evergrande Life has achieved scale insurance premiums of 22.7 billion yuan, most of which came from the sales of universal insurance.
According to the “Notice on Increasing the Regulatory Proportion of Insurance Funds to Invest in Blue Chip Stocks” issued by the China Insurance Regulatory Commission in July last year, for eligible insurance companies, the upper limit of the investment in single blue chip stocks will be adjusted from 5% of total assets at the end of the previous quarter to 10%; if the investment equity assets reach the upper limit of 30%, they can further increase their holdings of blue chip stocks, and the balance of equity assets after the increase will not be higher than 40% of the total assets at the end of the previous quarter.
Based on the calculation of the pace of opening positions in A shares, Evergrande Life has completed at least several billion yuan in asset accumulation in just over a month after its establishment last year. This year, with the rapid expansion of business, Evergrande Life’s asset scale has further increased. As a result, more funds may flow into the A-share market through the platform.
It is worth noting that according to Evergrande’s previous commitments, before December 31, 2018, Evergrande Life’s assets should reach more than 100 billion yuan. This means that once Evergrande Life reaches its development goals, its investment capacity in A-shares will not be inferior to that of Anbang, and its influence cannot be underestimated.
Layout of A shares under the "diversification strategy"
Although the industry generally believes that real estate has entered the "Silver Era", under the helm of Xu Jiayin, Evergrande's real estate business is still expanding rapidly, and in July it set a monthly sales record of 43 billion yuan for real estate companies.
However, in the face of the rapid expansion of the real estate business, Xu Jiayin himself has deep concerns. Since its sales exceeded 100 billion in 2013, it has included diversification in its development strategy, and has successively involved in many industries such as finance, internet, health, tourism, culture, sports, agriculture and animal husbandry, similar to "Hengda Ice Spring" and "Hengda The new brand of "grain and oil" is also frequently exposed.
Despite many years of experience in the real estate field, Evergrande’s crossover does not seem to be as smooth as imagined. Evergrande Bingquan and Evergrande Grain and Oil often give the market the feeling of "thunder and rain, little rain", and it is hard to reach All parties expected.
From the perspective of industry insiders, Evergrande is willing to set foot in industries with huge markets and fierce competition. The existing participants in the market are all strong. It is not easy for Evergrande to quickly gain a foothold.
Perhaps Xu Jiayin is also aware of this problem. For Evergrande, it is able to catch up in the real estate industry that is “asset-heavy operation”. In addition to macro prediction and trading ability, a large part of its advantage lies in its good at financing. .
Obviously, in the rapid development, Evergrande has mastered the fund-raising ability, and how to make better use of the fund-raising ability is undoubtedly the question Xu Jiayin wants to answer most.
In the opinion of analysts, the financial industry, which is different from the real economy, is undoubtedly the best channel for capital raising capabilities, and once business incubation is completed, it can further enhance fund raising capabilities. "A large amount of industrial capital has entered the banking and insurance business for this reason."
In addition, the "closest to money" A-share market is also a good place for capital raising capabilities. "For industry leaders with abundant resources, it can more easily realize the conversion of the primary and secondary markets, improve the quality of listed companies, and realize their own value." The above-mentioned analysts pointed out.
The reporter noted that the detailed report on changes in equity disclosed by Langfang Development last night showed that Evergrande has made it clear that it does not rule out proposals and plans to adjust the main business of listed companies in the next 12 months; at the same time, it does not rule out In the next 12 months, plans to sell, merge, joint venture or cooperate with others of the assets and businesses of the listed company or its subsidiaries, or plans to purchase or replace assets by the listed company.
If you don't call it, it's a blockbuster. With hundreds of billions of funds, Xu Jiayin obviously will not stop at the dozens of A-share companies he is currently involved in, nor will he be satisfied with the billions of billions in book profits he has earned. Now that he has taken the first step, Xu Jiayin Perhaps it can bring more expectations to the market.
