What does the broker mean by "sponsorship+direct investment"?

Before offering IPO to listed companies, brokerage investment banks will pull in their own direct investment institutions and bundle them for listing. You give me cheap shares, and I sponsor your listing. The mode of direct investment plus sponsorship is actually naked interest transfer and insider trading, although this is allowed by the regulatory authorities.

This will definitely not lose money. . .

Example: In September 2009, Ping An Caizhi purchased the shares of Ricky Tools to be listed at a price of less than 654.38+0.4 million yuan, and the listing sponsor of Ricky Tools was Ping An Securities, the parent company of Ping An Caizhi. Nine months later, Ruiqi Tools successfully passed the audit of the Growth Enterprise Market Committee of the China Securities Regulatory Commission. According to the 56 times P/E ratio of GEM published by Shenzhen Stock Exchange on June 30th, the issue price of Ruiqi Tools may be close to 40 yuan/share. The book value of 365.438+0.5 million shares held by Ping An Caizhi may exceed 65.438+0.2 billion yuan. It took Ping An Caizhi 9 months to get 9 times of investment income, which is obviously the most efficient investment in the direct investment business of GEM brokers.