On October 14th, Financier News (Reporter: Shen Shuhong) Following the two previous reductions in the valuation of its high-holdings in NH Health in July and September, Robomai Fund announced today that the valuation of this stock has been adjusted again to 5.64 Hong Kong dollars. Last month, some fund companies had already decisively reduced the valuation of this stock to below 5 Hong Kong dollars.

Previously, many public offering funds such as Fuguo Fund, Boshijijin Fund, Dacheng Fund, and Nanfang Fund have also adjusted the valuations of NH Health held by their products, showing a significant difference in the extent of the valuation adjustment. The reasons for this difference in valuation may be related to the positions of the fund company's products and their own funds holding this stock. Products under Huaxia and Fuguo held the stock position at the end of June below 5%, while the self-owned funds-intensive product - Robomai China Medical Health held a stake of 8.36%, which is more affected by stock fluctuations and thus has relatively lower motivation to significantly reduce valuations in one go.

In addition to NH Health, recently, many fund companies have also adjusted the valuations of stocks held by their funds, with troubled stocks such as *ST Weichuang, Country Garden, China Dili, and Guangdong Highsun Group being adjusted to 0 yuan. These stocks have either been suspended for a long time, repeatedly hit the limit down, or are on the brink of delisting.

Initiative funds have adjusted valuations of high-holdings for the third time.

On October 14th, Robomai Fund announced that starting from October 11th, the valuation of 'NH Health' held by the company's securities investment funds will be based on 5.64 Hong Kong dollars per share. Once the above stock shows characteristics of active market trading, the valuation will revert to using the closing price of that day.

This is not the first time Robomai Fund has adjusted the valuation of NH Health. On July 11th, the company announced that starting from July 10th, the valuation of 'NH Health' held by the company's securities investment funds would be based on 11.36 Hong Kong dollars. Two months later, the company again decided to value this stock held by its products at 9.00 Hong Kong dollars.

After three cautious adjustments, Lubaime Fund has lowered its valuation of NH Health by nearly half.

As early as March 28, NH Health, suspected of financial fraud, had already started trading suspension. By the closing on March 27 before the suspension, the stock closed at 14.14 Hong Kong dollars. On July 10, NH Health was removed from the list of securities in the Hong Kong Stock Connect and excluded from the Hang Seng Composite Index, greatly impacting its pricing and liquidity.

Following Lubaime Fund's adjustment of NH Health's valuation starting from September 11, Zhonggeng Fund decisively lowered the valuation of the stock on September 13, valuing it at 4.96 Hong Kong dollars, a adjustment much larger than that of Lubaime Fund.

In mid-September, many public funds such as Fuguo Fund, Boshhi Fund, Da Cheng Fund, Xinyuan Fund, and Nanfang Fund all adjusted the valuation of NH Health held by their products, showing significant differences in the adjustment magnitude. Currently, most fund companies have adjusted their valuations to around 50% to 30% of the pre-suspension levels.

The cause of these valuation discrepancies may be related to the extent to which fund companies' products and their own funds hold positions in this stock. By the end of June, Huaxia Xingyang held NH Health for a year, Fuguo Medical Growth 30, Fuguo Li Xiang Return 12 months were all heavy positions in NH Health, but with relatively low positions of 2.78%, 4.62%, 0.55% respectively. The impact of this 'drag' is relatively small. Launch vehicles with heavier own funds, such as Lubaime China Medical Health, hold a position of 8.36%, thus being more affected by this stock.

Multiple stock valuations have been 'reset.'

In addition to NH Health, Zhonggeng Fund also adjusted the valuation of the suspended stock 'Start Medical-B' held by Zhonggeng Stock Connect at 2.90 Hong Kong dollars per share in September.

As of now, Start Medical, the leading heart valve company, has been suspended for 10 months. The challenges it faces include: General Manager Zi Zhenjun and Chairman Zeng Min's illegal embezzlement of company funds, unauthorized transactions exceeding 2.4 billion; first half revenue down 9.7% year-on-year, net loss of -0.209 billion yuan...

It is worth mentioning that recently, the valuations of many listed companies have been "reset". For example, the Xinda Australia Fund announcement, valuing the "*ST Wecreate" held by its funds at 0 yuan per share.

At that time, *ST Wecreate had received a notice of delisting in advance, with the company's stock closing price lower than 1 yuan for twenty consecutive trading days, triggering the conditions for delisting as stipulated by the Shenzhen Stock Exchange. The Shenzhen Stock Exchange intends to delist the company's stock trading.

In the second half of the year, the valuations of troubled stocks such as Country Garden, China Dili, and Guangdong Highsun Group, which were on the brink of delisting, have also been adjusted to 0 yuan per share. These stocks, whose valuations were "reset", are currently held by very few public fund products.

A fund company insider revealed that when the stocks held by a fund company are suspended from trading for a long time or face the risk of delisting, in order to avoid significant fluctuations in the fund's net asset value after resumption of trading, the fund companies will adjust the valuations of these stocks based on relevant rules and market conditions.

If the valuations of suspended stocks are not adjusted in advance, they may be overvalued in the fund's net asset value. This could lead to some investors redeeming fund shares at higher prices, which could disadvantage those who have not redeemed. By lowering valuations, fund companies can to some extent mitigate the unfairness caused by early redemptions.

Lowering valuations also serves as a risk warning to investors, especially when valuations are adjusted to 0, often indicating that the stock may face the risk of delisting. The fund companies express a pessimistic outlook on the future performance of the stock through this method. Against this backdrop, fund managers will also focus more on fundamental aspects such as industry prospects, company quality, stable operations, competitive advantages, dividend payments, etc., when choosing stocks, to avoid high-risk industries or stocks.