Private time come for the new rules, anxiety spreading.
On July 15, “history’s most severe” private collect guide began to implement new rules and contract; On August 1st, can not meet the needs of private new rules on private equity will be cancelled.
On August 1, and with the private “shell” cancellation date approaches, protect shell war in full swing, the private housing prices have increased.
As for those who protect shell never old private, has started using the new contract, they occasionally complain a few words, the biggest worry is just a bit slow process and new rules stumble in practice.
Security shell borrow money
Many private industry, told reporters that a large number of private hoping to catch up before July 15 to complete the contract renewal security shell movement, therefore the recent brokerage, insurance and fund industry of private housing associations often have to work overtime.
“security shell cutoff time is August 1, I am more anxious these days, because we are using the old contract is a contract, it must be completed 15 days before filing, so these days I have to go play money.” Prior to the July 13, is trying to protect shell private person Shili Di (a pseudonym) said.
Last year, Li Di’s company got a license for Industry and Commerce, private sun product release plans, but this year February 5 known as “the most serious” of “further regulate private equity fund managers to register a number of issues notice” issued new regulations to increase the authors’ private equity fund managers registered legal opinion “requirement,” the recent legal opinion by the company, we have been looking for funds in the fight’s first product. “Liddy said.
Recently, Liddy investment in micro-channel group in the hair “to find private housing guarantee funds” message, “I hope to feature up to 500 million to 10 million in funding.”
As a rule, a private equity products, the minimum size of the initial size of 500 million. “The two barely played a few measly amount paid, in addition to one million of its own funds, and the remaining 5 million are borrowed funds, monthly interest rate one point two.” Liddy said, borrowed funds are used for product registration, estimated filing period 3-20 days, “to borrow money for two months is enough, but not immediately after filing the funds transferred funds to recapture some time.”
Liddy introduced its relatively simple way borrow money, “We are the private equity investment fund, subscription products directly to customers on the line, and then we pay interest, and finally the return of principal by way of redemption.”
According to the reporter, “security shell war” before August 1, it is mainly involved in two types of private equity: one is before February 5 Nisshin regulatory announcement no registration yo “shell” private; Another It is after taking into account the actual situation, extended processing time of three months, May 1st batch of “shell” private.
Indeed, borrow money Paul Liddy shell is not the case in the private sector is already common practice.
“August 1 deadline security shell, does allow some private companies a headache, because of poor market conditions, the product is not easy to raise, raised now is not good hair, bad hair more private.” Director of Shenzhen Investment Management Co., Des Valley long Zhaoli Song told reporters, “I know the situation is usually their first private placement to raise some funds to keep the shell.”
A mysterious research director of financial investment into Asia Zhong told reporters, “At present, the Association for insurance Cases private equity funds have a certain product registration window guidance, such as the initial size of the fund assets of not less than 5 million, an investment adviser may not exist, can not be issued structured products. therefore in order to protect the shell, many private equity at more than 10% / year earnings to absorb the funding priority, nominally pure management products issued, but on the back end, security shell and private funding priority has entered into a series of guaranteed income insurance benefits arrangement agreement. ”
“Private placement Shell” minimum 1.5 million
Security shell side is the battle going on, the other side is the shell price rise.
‘Private placement’ shell ‘of the price is 10 million, and had prepared the case, there are products of private placement the shell, Scoop can be more than one million, according to the specific circumstances of the shell has a different price. “A private equity fund company, he told reporters .
In Liddy’s company, for example, under the new regulation of private, Liddy made full preparations, in Paul’s the shell, it is also concerned about the housing market sell.”Our company before did the legal opinion, Maike parties that the price is more than seven million, and some are as high as ten million, while private insurance companies after the shell, such as the product has only completed the first record, I some time ago asked, the lowest price of 150 million or more. “Liddy said.
This expensive it? Shenzhen, a private intermediary industry told reporters, “business registration no money, the legal opinion is generally not more than 50,000 yuan, which means that the cost of private the shell in the six $.”
So why is the price of private placement housing up to 1.5 million?
Liddy simple calculations to reporters, “Our own security this case have spent six or seven hundred thousand. Among them, the legal opinion, the company’s operating cost several Loaning etc. together more than 100,000. then in order to protect the shell, this time the cost of capital spent more than 40 million, plus other costs, total sixty-seven one hundred thousand. ”
“Our company has been operating for two or three years of housing, or clean company, did not come until the account, did not send your product.” Liddy that the company is still relatively good shell resources.
The old general manager of a private placement company also told reporters that the current short supply private placement housing, private housing and some can not be guaranteed in the case of private placement help to consult with a hair product, “If there is not only the product, and with a team of private placement housing, and even some speculation to 15 million. ”
The new contract process is slow
“Estimated before July 15 failed to complete the record of private equity products, have been replaced with a new contract.” Zhong told reporters sub-adult.
Recently, a private industry who deal with a new private placement contract, July 18, he told reporters: “The new contract process is relatively slow, the broker took four days, and today finally finalized, after the printing contract, and then were covered management people, custodian chapter, then you can send the client. Next, in order to play money, set up, for the record, where the new contract also adds 24-hour cooling off period clause, which is again delayed one day. ”
According to the above-mentioned private placement industry insiders, before the old contract better brokerage contract template is automatically generated, the contract quickly, and now the new electronic contract can not be generated automatically, too artificial to do so slowly.
“The new contract has two main effects: a product is to raise private placement preparatory time becomes longer, the slow speed of the contract; the second is a contract there are many new regulations, such as 24-hour cooling off period, to confirm qualified investors, Terms return visit, we actually do not know how to get the operation. “the private placement industry told reporters.
In fact, the reporter interviewed a number of private placement companies have expressed no intention of recent new products.
“One is internal and other brokerages to streamline processes, and second, in the circle waiting to see how other companies do.” There are private placement industry source said.