Valuation of Huaze Tui and Kupai Group was lowered to 0 yuan by two fund companies

category:Finance
 Valuation of Huaze Tui and Kupai Group was lowered to 0 yuan by two fund companies


According to public information, Huaze retired from the stock market after receiving 12.5 yuan on February 29, 2016. Because of many irregularities, Huaze retired in early 2018 received a number of penalty notices from the SFC and issued a notice of suspension of listing risk. Yinhua, Dacheng, Penghua, Chinese merchants and other fund companies downgraded their valuations, with a minimum valuation of 0.55 yuan. In July last year, Huaze withdrew from the announcement of suspension of listing. ICBC Credit Suisse Fund and Jingshun Great Wall Fund took the lead in lowering the companys valuation to 0 yuan on July 13. Yinhua and Shen Wanling followed up and lowered the companys valuation to 0 yuan. Judging from the market performance, the company continued to fall and stop after its reopening on March 21, 2018. Since the annual report can not be disclosed within the legal time limit, the companys shares continue to suspend trading from May 2 last year until May 27 this year before resuming trading. After resuming trading, the companys shares continue to fall and stop.

Industry representatives believe that for companies with delisting risk held by funds, lowering stock price valuation and avoiding fund redemption arbitrage can effectively reduce the impact on fund operation. Similarly, on June 12, the Fonda Foundation issued an announcement. Since June 11, its fund has been valued at HK$0.00 per share for its Cool Group holdings. Cool Group suspended trading after closing at HK$0.72 on March 30, 2017, and was sharply lowered its valuation by 85% in July, 2017, at HK$0.11. After the announcement, the valuation will be returned to zero directly. These people said that in recent years, the number of listed companies with impaired goodwill has increased. By adjusting the valuation, the fund can avoid the impact on the operation of fund management and protect the interests of the people. Source: Responsible Editor of Securities Times Network: Yang Bin_NF4368

Industry representatives believe that for companies with delisting risk held by funds, lowering stock price valuation and avoiding fund redemption arbitrage can effectively reduce the impact on fund operation.

Similarly, on June 12, the Fonda Foundation issued an announcement. Since June 11, its fund has been valued at HK$0.00 per share for its Cool Group holdings.

Cool Group suspended trading after closing at HK$0.72 on March 30, 2017, and was sharply lowered its valuation by 85% in July, 2017, at HK$0.11. After the announcement, the valuation will be returned to zero directly.

These people said that in recent years, the number of listed companies with impaired goodwill has increased. By adjusting the valuation, the fund can avoid the impact on the operation of fund management and protect the interests of the people.