The Zhitong Finance App learned that Xiaomo released a research report saying that it gave Sunac China (01918) a “reduced holdings” rating and resumed trading on April 13 (today) after being suspended for more than a year. It is expected that the stock price will drop sharply, with a target price of HK$1.

Since the suspension of trading, the stock prices of stranded peers have dropped 68%. If we look at the stock price performance of Longguang Group (03380) and Kaisa Group (01638) after the resumption of trading, the stock prices fell 56% to 60% within 5 trading days.

Furthermore, since the bank expects Sunac China's book value to continue to decline, according to this year's 0.1 times target market account rate forecast, it is believed that the stock should only be worth 1 yuan, that is, there is a potential decline of 78%. If the book value continues to shrink, there is still a risk of further decline in the future.