On March 31, Vanke had 49 major transactions. The sales positions were all for institutional use only. The total transaction volume was 245 million shares, the total transaction amount was 6.13 billion yuan, and the transaction price was 25 yuan/share, which was 2.53% off the closing price of the day. Who is actually buying it, and who is selling it?
According to Vanke's announcement on the evening of March 31, Shenzhen Yingan Financial Advisory Company (Limited Partnership) (“Yingan Partnership”), representing the company's business partner, purchased 65 million shares through the Shenzhen Stock Exchange's bulk trading system on the same day, accounting for 0.58% of the total share capital, at a price of 25 yuan/share, and a total capital of about 1,625 billion yuan.
There are two major points of interest in this matter: First, why are Vanke's business partners who haven't bought in at least 3 years increasing their holdings without leverage at this time? Second, who is reducing holdings, Baoneng or Anbang?
Why buy it?
In May 2014, Vanke launched a business partner shareholding plan. 1,320 employees became the company's first business partners, including all 8 directors, supervisors, and senior managers at the time. The purpose was to further stimulate the enthusiasm and creativity of the management team, strengthen the close ties between the management team and shareholders, and create greater value for the company. The business partners signed the “Authorization and Commitment Letter”, entrusting all of their interests in the company's economic profit bonus group bonus account to Yingan Partnership for investment management, including introducing financing leverage for investment; at the same time, they promised that until the contingent obligation to return the company to the company borne by the collective bonus was lifted, this part of the collective bonus and derivative assets would be managed uniformly and closed, and not paid to specific individuals. In January 2015, Vanke's business partner shareholding plan welcomed the second batch of employees to join
On May 28, 2014, Yingan Partnership increased its holdings of Vanke by 358.392 million shares for the first time through a brokerage pooled plan, accounting for 0.33% of the total share capital at the time, and shared capital of about 300 million yuan. Between May 28, 2014 and January 27, 2015, Vanke announced Yingan's partnership to purchase shares 11 times. There were no relevant announcements until March 31 of this year. Of these 11 increases in holdings, Yingan Partners all passed brokerage pooled plans. Some of the capital came from the economic profit bonus collective bonus account managed collectively by the business partners, and the rest of the funds obtained by introducing financing leverage. As of January 27, 2015, Yingan Partnership held a total of 494 million shares of Vanke through brokerage pooled plans (Jinpeng No. 1 and Jinpeng No. 2), accounting for 4.48% of the total share capital at the time.
Until March 31 of this year, Vanke had no announcements about the purchase of company shares by its business partners. According to Vanke's 2017 quarterly report, by the end of March 2017, Yingan Partners had held 496 million shares of Vanke through Jinpeng 1 and Jinpeng 2. In other words, from January 27, 2015 to March 31, 2017, Yingan Partnership only increased its holdings by about 2 million shares.
Vanke announced on March 31 that Yingan Partners purchased 65 million A-shares of the company through bulk trading on the same day, accounting for 0.58% of the total share capital, and used a total capital of about 1,625 billion yuan. As of March 31, 2020, Yingan Partners directly held 65 million shares of the Company's A shares, accounting for 0.58% of the Company's total share capital; Jinpeng 1 and Jinpeng 2, subscribed to by Yingan Partnership, held 496 million shares of the company's A shares, accounting for 4.39% of the total share capital.
It can be seen from this that Jinpeng No. 1 and Jinpeng No. 2 have not increased their holdings in the past three years, and Yingan Partnership has not passed the brokerage pooling plan and has not added leverage.
Vanke's business partner spent 1,625 billion yuan this time, which is also the biggest increase in holdings in a single transaction. Among the 11 previous holdings increase announcements, the cost was generally between 200 million yuan and 500 million yuan, and only one was close to 1.3 billion yuan. This is due to the large span of the increase in holdings, from September 24, 2014 to January 23, 2015.
Therefore, Vanke's business partner's increase in holdings at this time can show “family” confidence in the stock price. Vanke's performance in the secondary market has been poor recently. The day after the disclosure of the 2019 annual report (March 18), it plummeted more than 6%, then declined further, and only recently has there been a slight rebound.
This year is also the year of Vanke's board of directors for a new term. In June 2017, the change of Vanke's board of directors marked the end of the “Baowan dispute”. Vanke's management held 3 seats in the 11-member board of directors, Shenzhen Metro, the largest shareholder, 3 seats, 1 outside director, and 4 independent directors. In January 2019, Xiao Min, a director recommended by Shenzhen Metro, resigned due to job changes, and the vacant seat has not been added. In June of this year, the three-year term of Vanke's current board of directors will expire. Will the pattern of the new board of directors change? Does Vanke's business partner's investment and increase his holdings at this time have anything to do with Yuci? It's worth paying attention to.
Who is selling it?
Returning to Vanke's bulk transactions on March 31, there were 49 transactions. A total of 245 million shares were traded, accounting for 2.17% of Vanke's total share capital, with a total transaction amount of 6.13 billion yuan. Seller seats are for institutional use only. Buyer seats include institutional use, CITIC Securities Shanghai Branch, Guoxin Securities Shenzhen Hongling Middle Road Sales Department, and Orient Securities Shanghai Zhongshan South Road Sales Office No. 1. Among them, the Shenzhen Hongling Middle Road Sales Department of Guoxin Securities bought a total of 65 million shares, which is the same number as Yingan's partnership, so it should be its seat.
The seller seats in the 49 major transactions are for institutional use only, and the transaction price is 25 yuan/share, which is also concentrated on March 31, indicating that the seller is most likely the same one. So, which side has this strength?
Looking back at history, on May 18, 2018, Vanke A had 26 major transactions. Of these, 24 of which both buyers and sellers were institutions. On that day, a total of 57.8825 million shares were traded between institutions, amounting to 1,476 billion yuan. According to a report by the Securities Times · e Company at the time, the selling agency seats here are all Taixin No. 1 Asset Management Plan managed by Taixin Fund Management Co., Ltd. The client is Ju Shenghua, a subsidiary of Baoneng.
Will it still be Baoneng this time?
According to the annual report, by the end of 2019, Baoneng's Jushenghua held 403 million shares, and its shareholding ratio had been reduced to 3.57%. Other shareholders of Vanke A with a shareholding ratio higher than 2.17% include: Deying 1 (2.91%), Anbang Life Insurance Co., Ltd. - Conservative Investment Portfolio (3.04%), Jinpeng 1 (4.04%), Shenzhen Stock Connect (4.32%), and Shenzhen Metro (28.69%). Among them, Anbang Life Insurance Co., Ltd. changed its name to Daida Life Insurance Co., Ltd. in August last year (hereinafter referred to as “Daida Life Insurance”)
Judging comprehensively, there is almost zero chance that the sellers of Vanke's March 31 bulk transaction were Deying No. 1, Jinpeng No. 1, Shenzhen Stock Connect, and Shenzhen Metro, while everyone's life and Baoneng are all likely.
Dajia Life has been reducing its holdings in Vanke. On September 19, 2019, Dajia Life Insurance exchanged its 196 million Wanke A shares for the fund shares of Ping An China Securities Guangdong-Hong Kong-Macao Greater Bay Area Development Themed Open Index Securities Investment Fund, accounting for 1.73% of the company's total share capital. Before this exchange, Dajia Life held 6.02% of Vanke. After this subscription was completed, Dajia Life's shareholding ratio was reduced to 4.29%, and it is no longer a shareholder of more than 5%.
According to Vanke's 2019 annual report, as of the end of 2019, Dajia Life's shareholding ratio was 3.04%. This means that from September 20, 2019 to December 31, 2019, Dajia Life Insurance reduced its shares in Vanke by 1.25%.
Baoneng has also been reducing its holdings along the way. At its peak, Baoneng held 25.4% of Vanke's shares, ranking as the largest shareholder. After the “Baowan dispute” ended, Baoneng began the path of reducing its holdings in April 2018. The shareholding ratio was reduced to 15% in September 2018, 10% in November 2019, and less than 5% in December 2019. There is no need for further disclosure. By the end of 2019, Baoneng's latest shareholding ratio had been reduced to 3.57%.
Vanke expects to disclose a quarterly report on April 28, at which time the answers are expected to be revealed.
