Cash arbitrage by major shareholders: ZTEs ah shares have fallen sharply for three months to cash out nearly 2.7 billion

category:Finance
 Cash arbitrage by major shareholders: ZTEs ah shares have fallen sharply for three months to cash out nearly 2.7 billion


The story originated from ZTEs reply to investors query on the development of 5nm chip design on the Shenzhen stock exchange platform on June 17. Dong said that the company has the ability of chip design and development, 7Nm chip scale mass production, has realized commercial use in the global 5g scale deployment, and 5nm chip is in the process of technology import, which was partially misinterpreted by the media as ZTE has been able to mass produce 7Nm chip by itself, and since then ZTEs market value soared 15 billion yuan.

On June 20, ZTE said that in recent years, a number of self media aimed at the mass production of ZTEs 7Nm chips, the information that 5nm chips began to import was misread, some of the reports were inconsistent with the facts, causing trouble and impact on the normal operation of the company. The statement pointed out that in the field of chip design, ZTE focuses on the design of communication chips and does not have the capability of chip production and manufacturing.

After the opening of trading on June 22, ZTE A shares fell only 1.59%, but ZTE new shares sharply reduced their holdings on that day. 21st century economic reporter noted that this is not the first time ZTE has reduced its holdings. Two months ago, ZTE new company just completed a reduction. In April 2020, ZTE new Co., Ltd. reduced its holding of 48913000 A shares of ZTE through block trading, with the average trading price of 38.16 yuan / share, 39.28 yuan / share and 37.69 yuan / share respectively, totaling about 1.87 billion yuan of cash. According to this estimate, ZTE new company has reduced 69.28 million shares in less than three months, with a total cash out of about 2.7 billion yuan. ZTE also said it did not rule out the possibility of increasing or reducing its stake in the company in the next 12 months. Source: responsible editor of 21st century economic report: Yang Bin_ NF4368

After the opening of trading on June 22, ZTE A shares fell only 1.59%, but ZTE new shares sharply reduced their holdings on that day.

In April 2020, ZTE new Co., Ltd. reduced its holding of 48913000 A shares of ZTE through block trading, with the average trading price of 38.16 yuan / share, 39.28 yuan / share and 37.69 yuan / share respectively, totaling about 1.87 billion yuan of cash.