Citic Securities' rights issue is to meet its own development needs and further issue new shares to the original shareholders in order to raise funds. In other words, the company is short of money and wants to raise funds through its own people. The original shareholders can decide whether to subscribe or not through their own wishes. For example, 10 shares are matched with 3 shares, which means that every 10 share has the right to subscribe for 3 shares of the stock according to the matching price.

1. Is the rights issue a good thing or a bad thing?

Is the rights issue good or bad? It depends on different situations. Generally speaking, after the rights issue price is discounted, the rights issue price is lower than the market price. Because the number of new shares needs to be divided into rights, the stock price will fall according to a certain proportion.

For shareholders who have not participated in the rights issue, there will be losses due to the decrease of share price. Shareholders participating in the rights issue believe that although the share price is getting lower and lower, it is a good thing that the number of shares has been increasing, and the total income right has not changed. In addition, after the stock is ex-entitled, especially in the bull market, it is very likely that the stock will be filled with rights, that is to say, if the stock is about to return to its original price, or even higher than the original price, it is possible to gain income.

For example, if the closing price of a stock the day before is 10 yuan, the allotment ratio is 10:2 and the allotment price is 8 yuan, then the ex-dividend price is (10×10+8× 2)/(10+2) = 60. If the share price rises to 16 yuan the day after the ex-dividend, then the shareholders participating in the rights issue can get the price difference of (16- 14 = 2) yuan per share in the market. So, it's not bad.

Second, what should I do if I want to issue shares?

Looking at the problem from another angle, is the final result of the rights issue good or bad? We can't generalize. The most critical issue is how the company uses the funds obtained from the rights issue. Inexperience or the precursor of bankruptcy of enterprises is often considered as a problem of rights issue, which may lead to great investment risks. So once you encounter a rights issue, you'd better see whether the stock is good or bad and how the company develops.