Not because the fundamentals are so beautiful, nor because of the sudden release of many good, the trend of Fusheng International Stock in recent days makes the outside world call confusing. Especially after falling from HK$0.38 to HK$0.095 for two consecutive days, it turned around and rose on October 11 for HK$63.6 million.
On October 10, Fortune International had a total turnover of 440 million shares and 524 million shares the next day. Moreover, the turnover rate of Fusheng International is 231 times higher than that of Fusheng International only on the 10th and 11th days.
From the perspective of Fusheng Internationals stock price changes, it has little correlation with the companys own operation, but the market is full of imagination because of its management turnover shortly after. From the companys recent performance, the medium-term income and earnings are better than in the past, and there are few factors that have a significant impact on the current stock price.
Artificial hype or bad hardware?
A brokerage analyst told Daily Economic News that if there is excessive concentration of equity, there will be some room for manipulation, and trigger stock prices to rise and fall. Therefore, in general, Fusheng Internationals stock price volatility, artificial manipulation is the most likely. Fusheng International itself has a small plate and poor liquidity. The first possibility of such a sharp drop is a potential shortfall, leading to the escape of insiders.
Because the circulation is small, a small amount of selling can trigger stock price fluctuations, and then trigger trampling, short-selling funds will exacerbate short-term fluctuations in stock prices. The self-regulatory supervision adopted by HKFE focuses on the transparency and timeliness of information disclosure of listed companies. Therefore, as long as Fusheng International announces in time, it will not intervene unless it finds that Fusheng International has acts of manipulating stock prices or information. The analyst said.
In response to abnormal fluctuations in stock prices, Fusheng International announced on October 10 that the board of directors was unaware of the reasons for the decline and volume of the companys share price, and that the company was functioning normally.
According to the interim performance report, Fusheng International realized a revenue of 299 million yuan in the first half of the year, an increase of 31.3% compared with the same period last year. The company owner should account for 116 million yuan of profit during the period. If deducted from business projects, Fusheng Internationals operating profit after tax deduction is about 0.73 billion yuan, and began to turn losses into profits.
Source: Daily Economic News Author: Wu Ruofan, Editor-in-Charge: Wang Xiaowu_NF