Due to factors such as discounted issuance, private placements were once labeled by the market as a "sure-win, no-loss" proposition. However, looking at A-share private placement projects since 2026, some listed companies have seen their stock prices rise, allowing institutional investors participating in placements to enjoy paper gains; while others implemented placements at relatively high stock price levels, trapping some institutions. For example, Longsys (ASX: 301308) conducted a private placement at 560 yuan per share, but the stock price now sits around 311 yuan per share.

Several well-known fund managers participating in mutual fund companies are among the main institutions involved in listed company private placements. Wind data shows that as of September 29, 2026, a total of 26 mutual fund companies have participated in A-share listed company private placements this year, with a total participation scale of approximately 14.155 billion yuan. Compared with the same period in 2025, 29 mutual funds participated in listed company private placements at that time, with a total scale of approximately 6.189 billion yuan.

Where the money is going

From this year's data, E Fund has the highest scale of participation in private placements, participating in 15 placement projects during the year with a total amount of approximately 6.142 billion yuan. Caitong Fund has participated in the most placement projects this year, at 64, with a total amount of approximately 2.219 billion yuan, ranking second in terms of amount. Xingzheng Global Fund ranks third in private placement participation scale at approximately 1.959 billion yuan.

From the perspective of fund products, there are both "placement specialist" products that continuously participate in the private placement market and products managed by well-known fund managers. Caitong Dingxin Quantitative Stock Selection 18-Month Regular Open participated in private placements of 61 stocks including Keli Motor, Naike Equipment, Anji Technology, and Youyan Powder Materials, ranking first among fund products in terms of the number of individual stocks participated in. As of the end of the second quarter this year, the scale of Caitong Dingxin Quantitative Stock Selection 18-Month Regular Open was approximately 131 million yuan. According to the fund's second-quarter report, in addition to buying stocks through private placements via non-public means, the product also bought multiple stocks through inquiry transfers and IPO subscriptions.

Multiple funds frequently participate in private placement projects in the market. For example, China Universal CSI 500 Index Enhanced participated in private placements of 18 stocks including Wuzhou Xinchun (rights protection), Shanghai Hanxun, and PowerChina Hydropower; Yimi Yuanjian Value One-Year Regular Open participated in private placements of 10 stocks including Jingzhida, Tongfu Microelectronics, and Anlogic Technology. Among the funds participating in private placements, there is no shortage of products managed by well-known fund managers. Wind data shows that Fu Guotianhui Selected Growth managed by Zhu Shaoxing participated in the private placement of Haiscorp, obtaining approximately 842,200 shares; Xingquan Social Value Three-Year Holding, Xingquan Heyi, and Xingquan Herun managed by Xie Zhiyu participated in the private placement of Tongfu Microelectronics, obtaining approximately 234,700 shares, 4.1531 million shares, and 7.4034 million shares respectively; Caitong Value Momentum, Caitong Growth Optimization, Caitong Integrated Circuit Industry, and Caitong Quality Selection managed by Jin Zicai participated in the private placement of Shengyi Electronics, obtaining approximately 3.5849 million shares, 8.066 million shares, 3.1368 million shares, and 1.7924 million shares respectively.

Wide divergence in private placement returns

Among the stocks that conducted private placements this year, there is no shortage of hot stocks, such as Longsys, Jingzhida, Changchuan Technology (rights protection), and Tuojing Technology in the AI sector. Since the beginning of this year, the AI sector has experienced significant volatility, with some stocks showing notable pullbacks after sharp gains, which has also led to wide divergence in institutional investors' private placement returns.

Due to stock price increases, institutions have achieved paper gains on private placements in multiple stocks. In June this year, Tuojing Technology conducted a private placement at an issuance price of 576.01 yuan per share, with participants including 12 institutions such as E Fund, Yimi Fund, Nuode Fund, and Huatai-PineBridge Fund. As of the close on September 29, Tuojing Technology's stock price closed at 656.68 yuan per share. Compared with the placement price, the above institutions have paper gains of approximately 14%. The placement prices of Jiangfeng Electronics, Songfa Shares, and Megmeet were 181.01 yuan per share, 146.02 yuan per share, and 85.01 yuan per share respectively. As of the close on the 29th, the closing prices of the above stocks were 230.33 yuan per share, 214.02 yuan per share, and 118.50 yuan per share respectively, with institutions participating in the placements achieving paper gains of approximately 27.25%, 46.57%, and 39.40% respectively.

Private placements are usually issued at a discount to market price, but a discount does not equal principal protection. When some stocks conduct private placements at stock price highs, if the stock price falls significantly, the discount safety cushion will be breached, and investors participating in the placement will also incur paper losses.

Longsys conducted a private placement at 560 yuan per share, with 21 institutions or individuals completing stock subscriptions in early July. In the first half of the year, Longsys's stock price rose sharply, reaching a post-listing high of 749.88 yuan per share on July 2. Subsequently, as the AI sector retreated, Longsys's stock price dropped significantly. As of the close on September 29, Longsys's stock price closed at 311.66 yuan per share, down approximately 44.35% compared with the placement price.

A total of 7 fund companies participated in this Longsys private placement. E Fund obtained the most shares at 947,300 shares. Based on the closing price on the 29th, E Fund's paper loss was approximately 235 million yuan. Caitong Fund, Nuode Fund, Orient Alpha Fund, and Guotai Fund obtained 442,300 shares, 395,400 shares, 267,900 shares, and 178,600 shares of Longsys respectively. Based on the closing price on the 29th, their paper losses were approximately 110 million yuan, 98.183 million yuan, 66.5196 million yuan, and 44.3463 million yuan respectively.

In April this year, Maxscend conducted a private placement at 86.78 yuan per share. As of the close on September 29, the company's stock price closed at 70.08 yuan per share, down approximately 19.24% from the placement price. Nuode Fund obtained 5.1106 million shares, with a paper loss of approximately 85.3476 million yuan based on the closing price on the 29th. Caitong Fund obtained 4.6266 million shares, with a paper loss of approximately 77.2649 million yuan. E Fund obtained 1.3252 million shares, with a paper loss of approximately 22.1307 million yuan.

In addition, the stock prices of multiple stocks such as Fanya Microtech, Weiteng Electric, and BAIC BluePark have all declined compared with the time of their private placements, and the fund companies that subscribed to these stocks are temporarily at a paper loss. The placement shares of the above stocks have lock-up periods of 6 months or longer, and most of the placement shares are still within the lock-up period. Whether fund companies can ultimately profit depends on the price at the time of sale.

The views in this article are for reference only and do not constitute investment advice. Investing involves risks, and caution is required when entering the market.