One media share price soars and Taiwan capital? SFC issues reminder

 One media share price soars and Taiwan capital? SFC issues reminder

Source: East China Network, August 12 (Xinhua) after the arrest of Li Zhiying, the founder of one media, the companys share price unexpectedly soared for three consecutive days. Hong Kongs Star Island daily reported on the 12th that Taiwans capital might be involved in the market. The Hong Kong Securities Regulatory Commission (SFC) issued a statement on the evening of November 11, reminding investors to be cautious in trading and called on one media to disclose sensitive information in a timely manner to avoid false markets.

Hong Kongs east net quoted a statement from the Hong Kong Securities Regulatory Commission as saying that it had been informed of a large number of inquiries related to the recent sharp rise in the price and trading volume of one media shares and the overall public concern about the matter. Due to the abnormal rise in the companys share price, investors are reminded to be cautious when buying and selling. In response to the above situation, the SFC has been monitoring and will continue to closely monitor the trading activities related to one media. The CSRC will also cooperate with the SEHK to require one media to disclose to the market in a timely manner all future development and information related to its control, financial status and operation, which may have a significant impact on the companys share price, and to avoid false market for its securities.

According to the 12 Daily News of Star Island daily, it is widely rumored that Taiwan capital has entered the market behind the soaring value of one media, but it has not been confirmed whether the news is true or not, and some market participants think that the speculation is unreasonable. It is reported that the most active trading in the stock on the 10th was mostly Chinese securities companies, while on the 11th the main buyer was Taiwan capital, which even asserted that this method was used to transfer funds. However, some market participants retorted that because one media is not worth the current share price, and buying shares in the second-hand market only helps other shareholders cash in, which will not improve the financial situation of one media.

The stock price of one media has changed dramatically for several days. At the close of the market on August 7 (Friday), the share price was only HK $0.09. On the 10th (Monday), it closed at HK $0.255, a 2.8-fold increase. A week ago, the market value of one media was only about HK $200 million. On the 10th, it was as high as HK $670 million. On the 11th, it opened at a high level of HK $0.45, once rising to a high of HK $1.96 and closing at HK $1.4. On the 12th, it rose again and was now trading at HK $1.15. In the face of unusual stock price and trading volume changes, one media issued an announcement after the closing of the market on the 11th, confirming that the board of directors was not aware of any reason for the fluctuation or any information that must be published to avoid false market of the companys securities.

Since the arrest of Li Zhiying, the stock price of one media has fluctuated significantly and has not yet suspended trading actively or passively. According to the Listing Rules, when the issuer has information or insider information that must be disclosed, or when the insider information is leaked, resulting in substantial fluctuations in the stock price, the regulatory authority may order the listed company to suspend trading. In this regard, Lu Huaji, executive vice president of the Hong Kong Independent Directors Association, explained that at present, it has not been confirmed that the company was involved in serious crimes. In addition, the Li Zhiying incident did not constitute insider information. However, in the aspect of corporate governance, the directors should take the initiative to apply for suspension of trading for the sake of information clarity, so as to avoid stock price volatility caused by information asymmetry. He also believes that regulators are concerned about whether shares are suspected of market manipulation, insider trading and other misconduct.

Hong Kongs Ta Kung Pao published on the 11th said that one media has continuously recorded losses in recent years, with a huge loss of HK $415 million in fiscal year 2019 alone. Why does the stock price go in the opposite direction when the performance of a company is so poor and the major shareholders are in trouble with the officials? The stock market usually refers to those stocks with strange and strange stock price movements as demon stocks. It is clear that the listed company is losing money, but it has repeatedly pulled out the price limit; clearly, the stock of this company can not reach such a high price, but it has risen very high. Now the stock price performance of one media makes people smell the smell of demon stock. As for the one media behind the involvement of external political funds, may always be a mystery, but for ordinary shareholders, demon shares is demon stocks, can not be touched!

(function(){( window.slotbydup=window .slotbydup||[]).push({id:u5811557,container:ssp_ 5811557, async:true }Source of this article: Lin Qihui, editor in charge of overseas website_ NB13068