Public Fund Institutions Invest Nearly 11.5 Billion Yuan in A-Share Private Placements This Year

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Reporter: Chang Xiaoyu

Since the beginning of this year, public fund institutions have maintained strong enthusiasm for participating in targeted A-share placements (hereinafter referred to as “private placements”). According to the latest data from Public Fund Paimai, as of March 18, 2023, 17 public fund products have participated in the private placements of 26 A-share listed companies, with a total allocation amount of 11.493 billion yuan. Based on the closing price on March 18, the total unrealized profit from public fund participation in these private placements is approximately 2.184 billion yuan, with an overall unrealized profit ratio (unrealized profit/allocated amount) of 19.00%, demonstrating strong investment returns.

When asked why private placements in the A-share market attract public fund institutions, Li Chunyu, FOF fund manager at Shenzhen Rongzhi Private Securities Investment Fund Management Co., Ltd., told Securities Daily that the active participation of public funds in private placements is due to several factors: first, the continuous optimization of policy environment has increased market transparency and asset quality, enhancing their appeal as long-term allocation assets. Second, many current private placement projects focus on high-growth sectors aligned with national strategies, providing public funds with opportunities to deploy in core tracks at reasonable costs. Third, amid increased market volatility, the “price safety cushion” effect of private placements also helps smooth net asset value fluctuations.

Looking at individual stock performance as of March 18, over 90% of the private placement projects participated in by public funds are in a state of unrealized gains. Notably, in the electronics sector, KeXiang Co., Ltd. performed the best, with a public fund participation unrealized profit ratio of 170.73%. NorDe Fund and Cinda AOYA Fund received allocations of 57.4957 million yuan and 17.22 million yuan, respectively. In the building materials sector, Honghe Technology followed closely, with combined allocations from Caitong Fund and NorDe Fund exceeding 270 million yuan, and an unrealized profit ratio of 73.21%. Additionally, stocks like Olaid, Changhua Chemical, Zhongbei Communications, Lair Technology, and Beite Technology all showed unrealized profit ratios exceeding 30%, highlighting the high return potential of private placements.

From an industry distribution perspective, public fund participation in private placements covers 12 first-level industries according to Shenwan classification. The automotive sector is the most favored, with public funds participating in four stocks: Beite Technology, Fengshen Co., Ltd., BAIC Blue Valley, and JAC Motors, with a total allocation of 3.489 billion yuan. Additionally, public funds also led in allocations in power equipment and basic chemicals sectors. In terms of returns, all 11 industry private placement projects achieved unrealized gains, with the electronics sector having the highest overall unrealized profit ratio at 56.84%. Building materials and communications sectors also saw unrealized gains exceeding 45%.

In this regard, Chen Xingwen, Chief Strategy Officer at Zhuhai Heikai Capital Investment Management Partnership (LP), analyzed for Securities Daily that this year’s focus of public funds on automotive and power equipment sectors is driven by multiple strategic considerations. Currently, China is leveraging its complete new energy industry chain to accelerate its transformation into a “strong manufacturing country,” and public funds have keenly seized this opportunity. Meanwhile, private placements are shifting from “discount arbitrage” to “premium chipping in,” reflecting a change in investment logic from benefiting from policy dividends to deep value cultivation. Furthermore, automotive and power equipment sectors embody the core connotations of new productive forces, with private placements precisely targeting key nodes of industrial upgrading. From a global perspective, China’s manufacturing industry has advantages in technology, cost, and scale. Public funds deploying in related sectors through private placements are essentially sharing the dividends of China’s manufacturing industry enhancing its global competitiveness. Therefore, this strategic layout by public funds is not a short-term game but a long-term strategic allocation based on industry trends, policy guidance, and global competitiveness.

Additionally, among the 17 public fund institutions participating in private placements, 7 have allocations exceeding 100 million yuan, with three exceeding 3 billion yuan. E Fund participated in four private placement projects with a total allocation of 3.974 billion yuan; Caitong Fund participated in 25 projects with a total of 3.277 billion yuan; NorDe Fund participated in 24 projects with a total of 3.261 billion yuan.

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责任编辑：Gao Jia