After breaking the limit and deducting the “earth and sky board” market, Rendong Holdings (002647.SZ) entered the crisis again.
On the 16th, Rendong Holdings opened a lower limit. After the call auction ended, according to market estimates, the selling funds exceeded 600 million yuan. As of the close of the day, the company’s stock price fell 9.97% to close at 13.63 yuan. According to data from the Aftermarket Dragon and Tiger List, the stock had a turnover of 785 million yuan that day, and the trading funds were dominated by seats in the brokerage department.
Although the “earth and sky board” was short-lived, after the limit was broken, liquidity was released, and the pressure on Rendong Holdings’ 3 billion financing plate dropped sharply. Even so, the news that major shareholders may encounter a liquidation still worries the market. On the 16th, China Securities Construction Investment Securities responded on the interactive Yi platform that the specific amount of Rendong Tianjin’s two financing businesses is not convenient to disclose, but it does not exceed 50 million yuan, and the account maintenance guarantee ratio exceeds 300%.
“Maintaining a high guarantee ratio does not mean safety. Because if there is no trading volume, it will not be able to sell. If it fails to sell after maturity, the brokerage may extend the period to allow shareholders to increase the collateral.” The vice president of brokerage business of a medium-sized brokerage told China Business News. The reporter said.
Previously, more than a dozen brokerage firms had included Rendong Holdings as the two financing targets. The reporter learned from some of the above-mentioned brokerage firms that the relevant brokerage firms have communicated with investors about margin call-related matters in order to deal with possible short positions. “Customers holding Rendong’s stocks may have the risk of wearing positions, and we are currently actively dealing with them. Margin trading and securities lending is an on-market business, and there are many ways to handle it.” A person from the investor relations department of a large brokerage said.
Shareholders reduce their holdings and flee, and the controlling shareholders may encounter a forced liquidation. What are the follow-up stories surrounding Rendong Holdings? Will the risk of liquidation in the financing market be transmitted to the brokerage firm?
An announcement on the evening of the 15th made the market worry again.
Rendong Holdings stated that, upon receiving notice from China Securities Construction Investment Securities, shareholder Rendong Tianjin’s two merger agreements with China Securities Construction Investment Securities will expire from December 15 to 18, if Rendong Tianjin did not return before the contract expires. For all liabilities, China Securities Securities will compulsorily liquidate positions based on market and trading conditions after the contract expires. Rendong Information, the controlling shareholder of Rendong Information, in the two financing business of Minmetals Securities, due to the recent sharp fluctuations in stock prices, may also trigger the possibility of forced liquidation.
On the 16th, China Securities Investment Securities responded on the interactive exchange platform that the specific amount of Rendong Tianjin’s two financing businesses in the company is inconvenient to disclose, but it does not exceed 50 million yuan, and the account maintenance guarantee ratio exceeds 300%.
“At present, Rendong Tianjin maintains a good proportion of guarantees in the credit account of China Securities, and there is no risk of credit default loss for the time being.” China Securities also said.
The reporter checked the third quarterly report of Rendong Holdings and found that as of the end of September, Rendong Tianjin held 5.1 million shares in the customer credit transaction guarantee securities account of China Securities Securities; Rendong Information held shares in the customer credit transaction guarantee securities account of Minmetals Securities The number is 40,525,500 shares.
According to the third quarterly report of Rendong Holdings, Rendong Information was the largest shareholder with a 23.49% shareholding ratio at the end of September, holding 132 million shares; Tianjin Heyou Technology and Jingji Group ranked second and third shareholders respectively, holding shares The proportions are 8.63% and 6.94% respectively. Rendong Tianjin, Alashankou City People Innovation Equity Investment Limited Partnership, Chongzuo Zhongshuo, and natural person shareholders Zhang Liuyang and Liu Xiangdai are also among the top ten shareholders of tradable shares.
The reporter found that in addition to China Securities and Minmetals Securities, China Everbright Securities, Guotai Junan Securities, and Shenwan Hongyuan underwriting sponsors provided credit guarantee transactions for the top 10 shareholders.
With regard to the participation of the top 10 shareholders of Rendong Holdings in margin trading and securities lending: Rendong Information holds 40.5256 million shares in the customer credit transaction guarantee securities account of Minmetals Securities; Rendong Tianjin holds the credit transaction guarantee securities account of China Securities Construction Investment Securities. The number of shares is 5.1 million; Chongzuo Zhongshuo holds 4.8 million shares in the customer credit transaction guarantee securities account of Minmetals Securities; Zhang Liuyang holds 7,882,700 shares in the customer credit transaction guarantee securities account of Shenwan Hongyuan Securities; Liu Xiangdai holds 6.9043 million shares in the customer credit transaction guarantee securities account of Shenwan Hongyuan Securities; Xu Junjie holds 4,485,600 shares in the customer credit transaction guarantee securities account of Everbright Securities.
At the same time, there are more than ten brokerage companies that have included Rendong Holdings as the target of the two financing.
According to a previous report by China Business News, since October last year, 18 securities firms and securities companies including CITIC Securities, Huatai Securities, Hualin Securities, and New Times Securities have incorporated Rendong Holdings into the two financial targets. Among them, the financing margin ratio given by Guorong Securities is 45%. CITIC Securities and Huatai Securities transferred them to the two financial targets at the end of November and early December this year, respectively.
Regarding the situation of Rendong Holdings and its financing, the reporter asked Guolian Securities, Nanjing Securities and other securities firms as investors.
“If our customers participate through the two financial institutions, we will contact the customers to add margin or take the method of forced liquidation.” A person from the investor relations department of a small and medium brokerage said.
“Customers holding Rendong’s stocks may have the risk of wearing positions, and we are currently actively dealing with them. Margin trading and securities lending is an on-market business, and there are many ways to handle it.” A person from the investor relations department of a large brokerage said.
Although it returned to the lower limit on the 16th, there was still a fierce game of hot money surrounding Rendong Holdings.
The data shows that on December 16, Rendong Holdings has a lower limit, with a turnover rate of 14.43% throughout the day, a turnover of 785 million yuan, and the latest market value of 7.632 billion yuan. After-market data showed that Everbright Securities Foshan Lvjing Road sales department sold 27.26 million yuan, China Galaxy Xiamen Meihu Road sales department bought 40.99 million yuan.
It is worth noting that after the limit was lifted on the 15th, liquidity was injected, and the selling pressure of 3 billion yuan in financing of Rendong Holdings shares was released. Wind data shows that as of December 15, Rendong Holdings’ financing purchase balance was as high as 1.601 billion yuan, accounting for 18.88% of the circulating market value. Compared with the previous amount of 3 billion, a drop of nearly 50%.
▲Rendong Holdings’ financing balance scale (Source: WIND)
“From which price the financing order came in, this is not certain. But after 14 falling limits, the increase in financing has been very small. There were more than 3 billion transactions on Tuesday (December 15), and it is estimated that all financing orders are sold. , The brokerage may force a liquidation. For this kind of ticket, the brokerage may not force the liquidation again at 110%, and may have specific discussions with the customer.” Lin Qi (a pseudonym) of a medium-sized listed brokerage firm told reporters.
Under the crisis of the two-finance liquidation, will the two-finance business of many brokerages be affected?
Since being included in the margin and securities lending target in August last year, the scale of Rendong Holdings’ financing has expanded rapidly. According to Wind data, Rendong Holdings’ two financings involve securities companies and 18 brokerages. China Merchants Securities, CITIC Securities and other financing margin ratios are 100%, and the leverage ratio is 1:1.
It is worth noting that the financing margin ratio provided by Guorong Securities is 45%, which is about twice the investment leverage ratio.
“Shareholder credit financing, the depreciation of the target value received by the brokerage firm will have an adverse effect on the brokerage firm to a certain extent.” A researcher from a medium-sized securities firm in Beijing told reporters.
Lin Qi believes that if there is a liquidation, the brokerage will accrue part of the asset impairment, but overall, it will have little impact on the large brokerage companies.
However, some market analysts believe that Rendong Holdings’ continuous lower limit has increased the risk of leveraged funds. “With more than a dozen consecutive limit drops, a lot of leveraged funds are expected to be buried.” The above-mentioned person told reporters.