Chapter 416: The End of Placard Holding
"No wonder Gree's share price has soared in recent days. I was wondering what was going on." Gu Junhao said with some amusement.
Gree's stock price rose from 22.24 yuan on November 17 to 28.47 yuan on November 28, an increase of 28%, with one daily limit in between.
After the 28th, Gree decisively applied to the Shenzhen Stock Exchange for a trading suspension on the grounds .
Please note that this is not a forced suspension by the Shenzhen Stock Exchange, but a suspension that Gree applied for on its own initiative.
Even if it is to crack down on speculation, there are certain privileges for blue-chip stocks. Gree's proactive application for suspension also shows that they were also surprised by the abnormal stock price.
The announcement on the 30th explained the reason for the abnormal stock price.
"This is simply courting death. Nanbo A Company is not well-known, so it's fine if they bully others, but they actually want to hunt down Gree."
Miss Dong is not a person like Old Wang who has many dark spots and can be bullied and manipulated at will.
Although there are often jokes about her on the Internet, her life has no black spots in front of the public. On the contrary, it is very inspiring.
She was a woman of ordinary birth and low education. She did not give up on herself after her divorce. On the contrary, she achieved a legendary life through hard work.
The company is also operating exceptionally well. As a listed public vehicle, Gree Group's annual dividends are worthy of its shareholders.
Besides, Gree’s equity structure is relatively simple, and the local State-owned Assets Supervision and Administration Commission will not allow Baoneng to snatch away its golden rice bowl.
Gree reacted quickly before the first sign was raised, which was enough to ensure that it would be in trouble.
Vanke’s whirlpool has not been resolved yet, and it has jumped into a bigger pit. Insurance funds have really been floating around in the past year.
Since the beginning of this year, a series of insurance funds led by Baoneng have used more than 150 billion yuan to hold stakes in listed companies, involving more than 20 listed companies.
With such arrogant behavior, and with a well-known and excellent company like Gree being involved, the good days are coming to an end.
Gu Junhao increasingly felt that his decision to sell off his Vanke holdings in time this month was the right one.
Today is the end of the month, and Gu Junhao still has to come to the company as usual to see if there are any important matters to deal with at the end of the month.
When Gu Junhao is not around, it does not affect the company's operations. His assistant Li Xinyu helps handle some small matters.
If there are any documents that Li Xinyu cannot decide on, they will be sent to her home and delivered by the driver after she signs them.
It is worth mentioning that with the expansion of the company's business, the young secretary also has his own secretarial team and has been promoted to the director of the chairman's office.
On December 1, Gree, which issued an announcement after being suspended for two trading days, resumed trading on the same day.
Gree, the focus of the market, opened high and continued to rise, with its share price reaching the upper limit of 31.32 yuan, and finally surged 7.45% to 30.59 yuan.
On that day, Gree achieved a record transaction volume of 14.61 billion yuan, with a turnover rate of 7.95%.
While ordinary investors are celebrating, thinking that this is the next Vanke, they don’t know that the risks have already arrived.
With today's trading volume and turnover rate, if Baoneng is still buying continuously, his shareholding ratio must have exceeded 5%.
However, can the company really keep up with the continuous negative news? The stock price gives the answer.
On December 2, Friday, the last trading day of the week, Gree plummeted 5.98%. The transaction volume was 9.35 billion yuan, and the turnover rate was still as high as 5.35%.
For two consecutive days, Gree did not issue an announcement that its shareholding exceeded 5%.
Judging from the trading volume and turnover rate, Gu Junhao even felt that Baoneng was already running away.
On Saturday, December 3, at the CSRC's routine weekend press conference, the CSRC publicly criticized insurance companies led by Baoneng.
They were accused of using ill-gotten gains to engage in leveraged buyouts, and their behavior changed from strangers at the door to barbarians and finally to industry robbers.
Faced with public accusations from its peers, the China Insurance Regulatory Commission, as the regulatory body for insurance companies, could no longer sit still. Shortly after the press conference, it issued a statement stating that the arbitrage behavior of insurance companies that circumvents supervision is, strictly speaking, a crime!
The belated regulation has finally arrived. This weekend, insurance companies such as Baoneng, Anbang and Daizijia suffered several setbacks.
On Sunday, it was reported that the management department of Vanke's former largest shareholder had strictly ordered it not to make any statements on the Vanke incident without its consent.
Monday, December 5th.
On the first working day of this week, a series of regulatory policies on the entry of insurance funds into the market came out, which was quite rapid.
The China Insurance Regulatory Commission sent a regulatory letter to Baoneng Group, requiring it to stop providing universal life insurance OTT. It also suspended the Internet insurance business .
On that day, Gree shares opened sharply lower by 6.12%. The stock price hit the daily limit and closed at 25.88 yuan. The trading volume increased slightly from the previous day of the big drop to 9.5 billion yuan.
Vanke A also opened lower, plunging 3.59%. Blue-chip stocks dragged down by sentiment fell across the board, causing the Shanghai Composite Index to also open lower and fall 1.21%.
From a technical perspective, the Shanghai Composite Index left a downward gap at a high level; this gap also means that the 2016 market has come to an end.
The principle of jumping down from a high position and running away quickly, but unfortunately Gu Junhao can't do it now, because public funds are not allowed to have short positions.
However, Gu Junhao still decided to keep the position at the minimum requirement, which is 65%, and reduce all holdings except the liquor sector.
The reason why the liquor sector did not reduce its holdings is that it performed too well in the past two months, with an upward trend at the monthly level for two consecutive months and without deviating from the monthly five-day line position.
Today, it is also the most resilient sector on the market, with a decline far smaller than that of some other blue-chip stocks.
Today's limit down of Gree and sharp drop of Vanke have dealt the greatest blow to the concept of holding a stake. Some stocks in the concept of holding a stake that have been riding on the popularity have all hit the limit down.
Gree’s after-hours Dragon and Tiger List showed that three major institutional seats sold today, with the five largest seats selling a total of more than 730 million yuan.
However, the buying seats were equally strong. The five major buying seats, led by Shenzhen Stock Connect, purchased a total of 1.075 billion yuan.
Although the stock price hit the limit down today, the net difference between buying and selling on Gree's Dragon and Tiger List was a positive 340 million yuan.
After two consecutive trading days of sharp declines, comparing the seats on the Dragon and Tiger List on November 23 with those today, it is highly likely that the stocks were liquidated or significantly reduced in size to ensure energy conservation.
Old Wang tried for a whole year but failed to drive Bao Neng away. After a few words from Miss Dong, Bao Neng had to run away obediently.
This shows the importance of being upright.
Due to large-scale purchases by Shenzhen Stock Connect and other institutions, Gree’s stock price soon began to stabilize, and there were also rumors in the market that Baoneng may have cleared out its holdings in Gree.
The suspension of many of its insurance products was a fatal blow to Baoneng, whose leverage ratio remained high. It was inevitable for Baoneng to liquidate its Gree holdings to recover funds.
With a quick in and out movement, Baoneng seemed to have made a short-term transaction in Gree Shares. He did make some profit, but not much. Judging from his cost and recent trends, it was probably between 10% and 15%.
However, the impact on Baoneng is huge. It can be said that buying Gree is definitely a big failure. It is not an exaggeration to say that it is the last straw that broke the camel's back for Baoneng.
However, judging from the direction of insurance funds' holdings this year, it can also be seen that insurance funds are optimistic about the blue-chip stock market.
You can doubt their character, but you cannot doubt their vision.
But unfortunately, ordinary investors today do not realize this and are still willing to participate in speculation in small and medium-sized growth stocks.
Over the past year, 150 billion yuan of insurance funds have entered the A-share market to hold blue-chip stocks, and the ultimate purpose behind this is profit.
If we can analyze the significance of insurance funds entering the market at this time, it would be a good opportunity to buy at the bottom.
Unlike Gree's fast and stable stock price trend, Vanke, in which Baoneng and Belt are deeply involved, is not so lucky.
No one dared to buy the belt at this moment. Having lost the support of large funds, Vanke's stock price continued to fall and soon fell below the trend line.
On December 18, Sunday, 12 hours before the market opened, Vanke’s sudden announcement dealt a fatal blow to its stock price.
Vanke's management and Shenzhen Metro Group, which have been in restructuring negotiations, have found it difficult to hold a shareholders' meeting within the specified time because the restructuring plan has not been agreed upon by some major shareholders. With the approval of the board of directors, the company will terminate the restructuring with Shenzhen Metro Group.
The sudden termination of the restructuring stunned a series of shareholders holding Vanke shares.
At the close of trading on Friday the 16th, Vanke closed at 22.46 yuan, and its share price had fallen below the holding cost of 23.35 yuan.
At the opening on the 19th, Vanke opened low and continued to fall, falling by 6.36%, and then fell again by 3.65% the next day, with the stock price closing at 20.33 yuan.
The stock price almost hit the limit down in two trading days, and the loss margin of the belt also reached 14.85%.
The sudden termination of the restructuring and the silence of all parties involved have caused significant losses to the stock price. Coupled with the recent poor performance of the broader market, most blue-chip stocks, except for the liquor sector, are in the process of adjustment.
As of the close of the market on the 20th, the Shanghai Composite Index had fallen from 3250 points on the first trading day of this month to 3102.88 points at today's close.
It's almost the end of the month, and the index has fallen by nearly 5%. There has been no profitable market all month, with the US Federal Reserve raising interest rates and the black swan in Europe.
In addition, a series of new policies implemented by the new leader on the other side of the strait after taking office have caused great fluctuations in the global market.
The poor investment environment has once again shrouded A-share investors.
In the eight trading days after the 20th, A-shares continued to perform poorly. The Shanghai Composite Index barely held the 3,100 point level for the entire month, closing at 3,103.64 points, a monthly decline of 4.50%.
The ChiNext Index, which is used to experiencing great ups and downs, performed even worse. Whenever there was a major change, small and medium-sized start-ups were definitely the first to plummet.
This month, the ChiNext Index fell sharply by 10.12%, falling below the 2,000 point mark to 1,962.06 points.
Vanke's share price plummeted 23.83% this month, closing at 20.55 yuan, suffering heavy losses.
Similarly, although Baoneng has been driven out of the market, Gree's stock price has also suffered heavy losses this month, with a drop of 13.52% for the whole month, and the stock price has returned to 24.62 yuan.
