Latest Articles

Dollar gains, stocks teeter as US data suggests rates to stay higher

The dollar rose and a gauge of global equities slid on Thursday after data once again highlighted persistent U.S. labor market strength, suggesting the...
HomeStocksConditions and Skills for Subscription of New Shares

Conditions and Skills for Subscription of New Shares

Conditions for subscription of new shares:

  1. The account holds a certain market value of stocks . The specific regulation is that the average daily stock market value of the 20 trading days before the subscription date must reach more than 10,000 yuan. It should be noted that the two securities trading markets of Shanghai and Shenzhen are calculated separately. Only stocks with a market value of more than 10,000 yuan in Shanghai can subscribe for new shares on the Shanghai Stock Exchange , and the same is true for the Shenzhen Stock Exchange .
  2. The account has sufficient funds. For a simple example, if you want to subscribe for 1,000 new shares and the price per share is 1 yuan, the available funds in the account must reach more than 1,000 yuan. If the purchase of new shares has been won, you need to deposit sufficient funds before 16:00 on the day, and then the system of the brokerage will automatically deduct the funds for the purchase of new shares, indicating that the purchase has been successful, and you can wait for the stock to be listed.

New share subscription process:

  1. First, submit an application for IPO subscription on the trading day. Note that the trading hours of the exchange are generally 9:30-11:30 and 13:00-1500.
  2. Securities transactions are approved, and new shares are issued after approval.
  3. Investors shall deposit sufficient funds in the account according to the allotted shares and after the approval is approved on T+2 day.
  4. The trading system will deduct the funds at 16:00 on the day of winning the lottery, and the successful deduction will be regarded as the successful subscription of new shares.
  5. Tips for IPO subscription

Tip 1: Choose the golden time for IPO subscription, and refer to historical data to show that the probability of the number in the middle of the IPO lottery process is higher, so it is generally considered that 10:15-10:45 in the morning and 13:15-14:15 in the afternoon This is the best time to subscribe for new shares.

Tip 2: Buy stocks with a high issue price , starting from the income after winning the lottery. Generally, the income after the successful subscription of new shares is very amazing. Therefore, if the same is the winning lottery, it will be more cost-effective to buy stocks with a high issue price.

Tip 3: The market value can be reused. The subscription of new shares under the new regulations has strict requirements on the market value, but the market value of new shares can also be reused. That is, investors can subscribe for multiple new shares at the same time according to the actual market value in their hands and the market value of the new shares. In addition, choosing to concentrate on purchasing on the day with the largest number of new shares issued is very helpful to improve the winning rate .

Tip 4: Concentrate funds to purchase large-cap stocks . Generally , the winning rate of large -cap stocks is higher than that of small- cap stocks . Therefore, for retail investors with less capital , they should actively participate in the purchase of new shares of large-cap stocks, that is, concentrate funds to purchase a large-cap stock. stocks, which will help increase the winning rate.

Tip 5: You can only apply for new shares once, that is, investors need to make it clear that the subscription of new shares only counts the number of shares subscribed for the first time, that is, once the first subscription is completed , the system will not agree to the second subscription of new shares , and only the number of shares subscribed by investors for the first time is counted. Therefore, investors must seize their subscription opportunities and not waste them in vain.