Tianxiu signed a share transfer agreement with Raleigh Jiayu, the former controlling shareholder of ST Huiqiu on November 30, 2018. The closing price of ST Huiqiu on that day was 3.66 yuan, and the total market value of the company was 1.446 billion yuan. As soon as the news came out, ST Huiqius share price continued to rise and fall, soaring to 6.73 yuan without stopping. After that, it consolidated slightly, then steadily increased to 8.66 yuan, closing at 8.31 yuan on August 7, and the total market value of the company rose to 3.280 billion yuan, up 127% compared with the signing of the share transfer agreement. Although the stock price of ST Huiqiu changed from rising to falling after its reopening on Friday, the worlds best shareholders have won.
De-listing system under the new impact of rotten shell
This is another example of a live black chicken turning into a phoenix. ST Huiqius past cant be recalled. The absurdity of the 101 bills manipulated by one hand happened to ST Huiqiu, which had a very bad social impact. Over the years, the companys operation has been worthless. In terms of non-net profit deduction, the company suffered a loss of 3 years from 2010 to 2012, only a few cents a year from 2013 to 2015, and another loss of 3 years from 2016 to 2018. It is such a bad company that has been rotten to the root, but has been the worlds best, and all the way through the customs will actually be backdoor listing into a new media marketing service provider with Internet genes. This vivid example tells investors that no matter how bad the shell is, there is spring. Dont underestimate any stock.
ST Huiqius salted fish turned over and set up a new benchmark, which will lead to the resurgence of a large number of shell resource stocks, and the delisting system will be the most impacted. Why is it so difficult to delist over the years? The main reason is that the market value of every delisting stock is not low. The market value is supported by the investors funds. If the delisting stock is not compensated, the investor will suffer huge capital losses. Regulators invest in rat avoidance devices, sympathize with investorslosses, so the withdrawal policy is tight and relaxed. Pine-shell resource stocks will rise, tight-shell resource stocks will fall into darkness. In this way, investors will no longer believe it, so shell resources stocks can not fall to a certain extent, and the rotten shell is worth billions of dollars. Its no wonder that the market is delisting like this.
While ST Huiqiu has gained new life, there are also some important information disclosure violations, serious financial fraud and stock prices falling below one dollar face delisting. What signal does this convey? After careful analysis, we can find that if we strictly follow the current delisting system, more and more stocks should be delisted, which is the most unbearable burden of the market. Therefore, the stock that meets the delisting conditions is not eliminated, but open the net. However, there are still several kinds of stock delisting probability is very large, one is the illegal disclosure of major information; the other is the major violation of public safety; the third is serious financial fraud; the fourth is that the stock price has fallen below par value for one month in a row. In the fourth case, there is a controversy in the market that it is too harsh to rule out the possibility of future amendments. Conversely, the companys performance is not terrible, as long as someone can see it, it is possible to get a new life, if you find a good mother-in-law, but also sell a good price. As for the delisting system, it should be gradually improved in the long run.
Source: Han Yukun_NBJ11142, Responsible Editor of Stock Market Red Week