ST Huaxin disappointed speculators

category:Finance
 ST Huaxin disappointed speculators


According to the new delisting rules, on November 8, 2018, the Shenzhen Stock Exchange made the decision to terminate the listing of Zhonghong shares. Zhonghong shares became the first company in the history of A shares to be forced to terminate the listing because its share price was continuously below par value. On August 1, 2019, * ST Eagle shares closed at 0.69 yuan per share for 20 consecutive trading days below 1 yuan, waiting for the Shenzhen Stock Exchange to decide whether to terminate its listing. * ST Huaxin will follow in the next three trading days, waiting for the Shenzhen Stock Exchanges verdict.

In fact, the fall of August 12 has already pronounced the death penalty of * ST Huaxin in advance, because the stock can not stand above 1 yuan in the remaining four trading days, has triggered the red line of denomination delisting in advance, and delisting is inevitable. Although investors who hold * ST Huaxin stock are unwilling to see such results, there is no way that they can only taste the bitter fruits they have planted.

On the surface, it seems that listed companies are still making the last effort to stay in A shares. On Aug. 9, the company also issued the announcement on signing a restructuring intent agreement, hoping to help the company solve the debt crisis by introducing white knight Zhongzhou Carbon, so that the company can break away from the delisting edge. On the same day, the stock price directly changed from a stop-and-fall to a stop-and-rise, bringing investors a glimmer of hope of avoiding delisting in the form of sky floor.

However, the fall of August 12 ultimately shattered investorslast hopes. * ST Huaxin, in the end, let the speculators of ST Huaxin disappoint. Facts have proved that the Sky Floor on August 9 was just a dying struggle, failed to block the exit of * ST Huaxin, and the bottom-picker finally became the quilt. As for the agreement of reorganization intention signed by * ST Huaxin, it is true or false. Sooner or later, there will be a day when the truth will be revealed. But what will the mood of those speculators who have been tricked in?

The delisting system, which sweeps out the junk stocks in A-share market, is indeed conducive to purifying the investment environment of A-share market and optimizing the allocation of resources in A-share market. However, after exploring delisting enterprises, it is found that there are many problems in the formation and exit process of delisting shares, which deserve investorswarning and supervisors reflection.

Take * ST Huaxin as an example. More than four years ago, the stock price once reached 44 yuan, now only 0.70 yuan is left, and even will face delisting. The loss of investors is obvious. By the end of the first quarter of 2019, the number of shareholders of * ST Huaxin still exceeded 81,000. These investors may include some long-term investors who advocate value investment, but how many people can escape the danger in time after the performance of listed companies changes face? Again, on August 9, * ST Huaxin staged the floor of the sky, and many investors even chased up and stopped buying the shares. These people are obviously speculators of gambling restructuring. They are naturally blamed for the suffocation of the stock price, but their actions are thought-provoking. Why do they know that the risks are great and they have to rush in? Have all these years of risk education been wasted? Or are speculative interests too tempting? The delisting is proper, but delisting can not solve all the problems. Therefore, the problem of A-share market can not simply be retreated, but should start from the source, both symptoms and root causes. Take * ST Huaxin as an example, the suspected false records in the annual report of 2017 and the investigation by the SFC are the important turning point of the companys performance change face, and also the starting point of * ST Huaxins way to delisting. Shouldnt the relevant responsible persons be responsible for this? Only by facing these fundamental problems squarely and solving them can the delisting system be more perfect and the A-share market develop more healthily. _Pihaizhou (Financial Critic) Source of this article: Responsible Editor of Beijing Newspaper: Han Yukun_NBJ11142

Take * ST Huaxin as an example. More than four years ago, the stock price once reached 44 yuan, now only 0.70 yuan is left, and even will face delisting. The loss of investors is obvious. By the end of the first quarter of 2019, the number of shareholders of * ST Huaxin still exceeded 81,000. These investors may include some long-term investors who advocate value investment, but how many people can escape the danger in time after the performance of listed companies changes face? Again, on August 9, * ST Huaxin staged the floor of the sky, and many investors even chased up and stopped buying the shares. These people are obviously speculators of gambling restructuring. They are naturally blamed for the suffocation of the stock price, but their actions are thought-provoking. Why do they know that the risks are great and they have to rush in? Have all these years of risk education been wasted? Or are speculative interests too tempting?

The delisting is proper, but delisting can not solve all the problems. Therefore, the problem of A-share market can not simply be retreated, but should start from the source, both symptoms and root causes. Take * ST Huaxin as an example, the suspected false records in the annual report of 2017 and the investigation by the SFC are the important turning point of the companys performance change face, and also the starting point of * ST Huaxins way to delisting. Shouldnt the relevant responsible persons be responsible for this? Only by facing these fundamental problems squarely and solving them can the delisting system be more perfect and the A-share market develop more healthily.

Pi Haizhou (Financial Critic)