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Accompany you to make money in Hong Kong stock market!
Hello, everyone, I am the representative of Niuniu class!
Today is the 16th lecture in a series of courses "teaching you how to invest in Hong Kong stocks by hand"!
Niu friends, please pick up the small bench and come to class together.
Keep in mind the six characteristics of old shares before investment: frequent operation of capital; extremely poor performance of the company, but generous pay for senior executives; continuous influx of speculative capital; high performance and profit flight; frequent name change; low stock prices, no or less dividends for a long time.
"cheating" is a general term for swindlers in casinos to cheat to win money by various means, and this kind of swindler is also called "cheater".
There are often similar roles in Fage and Sing Yeh movies.
Source: "King of thousands of Kings"
In the Hong Kong stock market, some stocks are called "thousands of shares". These are stocks that cheat people's money and hurt the hearts of thousands of investors.
Li Xiaojia, chief executive of HKEx, published an article in 2016."about the" Old Thousand shares "，称：
Thousands of shares mainly refer toMajor shareholders do not make a profit by doing a good job in the business of listed companies, but mainly harm the interests of minority shareholders by playing with financial technology and financing methods such as rights issue, rights issue and partnership.
Li Xiaojia wrote this article to remind the majority of investors to be on guard against thousands of shares. Although the Hong Kong stock market has always been known for its relaxed stock market environment, which has attracted many high-quality companies to list in Hong Kong, it has also caused some junk stocks to run rampant, and thousands of shares are a big cancer.
Before 2007, several old Hong Kong stocks skyrocketed and plummeted every year, but generally speaking, the proportion was very small, and Hong Kong investors had more experience in fighting wits with banker for many years.
The turning point in history came in the bull market of Hong Kong stocks in 2007. The prosperity and development of Hong Kong stocks has attracted more and more investors from the mainland, Europe and the United States, but they have stepped into the trap of thousands of shares due to their lack of understanding of Hong Kong stock rules and many listed companies in Hong Kong.
Source: Futu Securities
On June 27, 2017, there was a scene of a collective explosion of thousands of shares, and the share prices of more than a dozen Hong Kong stocks suddenly halved in intraday trading, and countless small scattered funds went up in smoke.
It should be noted that the behavior of "old shares" harming the interests of minority shareholders does not necessarily violate the relevant listing rules and laws of the Hong Kong market.Some of the usual financial techniques, such as discounted rights issues and partnership shares, are themselves neutral means of financing, which are also within the scope permitted by the listing rules of the HKEx.
Therefore, investors may not be able to recover losses after the explosion of thousands of shares, and basically they can only open their eyes before investment to avoid stepping on mines!
First, identify the old thousand strands and grasp the following six characteristics
So how can we have a pair of "golden eyes" to identify thousands of shares?
Since 2007, investors who have been hit by thousands of shares have expressed themselves one after another and summed up a lot of guidelines for preventing cheating. Generally speaking, we should grasp the following six characteristics of old stocks!
Old shares usually have the following six characteristics:
Frequent operation of capitalFrequent rights issue and partnership
The company's performance is extremely poor.But the executives are well paid.
Stir-fry intoSpeculative funds continue to pour in to buy the market value to meet the criteria for inclusion in msci, attracting retail investors to take the offer at a high level.
Make a high performance and make a profit
FrequentlyChange the nameThe name is high-end (named after Asia, China, etc.) and likes to change names.
The stock price is depressedNo dividend or less dividend for a long time
In order to deepen our understanding, let's combine the specific cases to understand:
Frequent operation of capital: frequent rights issue and partnership, and some people lose 99%.
Rights issue means that a listed company "collects money" from existing shareholders, and shareholders can subscribe for new shares according to their shareholding ratio. If it is decided not to issue shares, investors can choose to sell the rights and interests during the trading period, and their interests will be diluted.
A partnership is a combination of multiple shares into one share, while the stock price will rise and the total value of the stock will remain unchanged.
Formerly known as Mongolia Mining, now known as$Xing Kai Holdings (01166.HK) $The company is doing very well in this respect.
During the period from 2001 to May 2017, Mongolia Mining made a total of 23 placements and rights issues and five partnerships, during which the share price continued to fall:
On January 21, 2014, Mongolia Mining announced a large proportion of rights issues (5 shares per share), with the rights issue price at a discount of 67% to the closing price, meaning that all existing shareholders have to spend 167 yuan for every 100 yuan held by Mongolia Mining to participate in the rights issue, otherwise the shares will be diluted. The next day, the company's share price plummeted 37%.
During 2015, the company announced a 10-in-1 partnership, directly changing its share price from HK $0.06 to HK $0.6.
Some netizens provided an example: an investor bought Mongolia Mining one after another from the end of 2007 to 2008 at an average cost of HK $0.40 per share, buying 15.5 million shares with a market capitalization of HK $6 million. As of the end of 2016, the stock was quoted at HK $0.44.
In eight years, the stock has been partnered four times, and the investor's original 15.5 million shares have fallen sharply to 775 shares, leaving a market capitalization of only HK $283, with a loss of 99.995%!
sometimes,A partnership may even reduce some of the shares held by investors to pieces.
以China Creative Digital (08078.HK) $For example, the company announced on May 21, 2019 that 50 shares would be merged into one share, which will take effect on May 23.
In the announcement on May 22nd, the number of shares per share was changed from 20000 shares to 8000 shares, which also took effect on May 23rd.
Affected by this, the company's share price closed down 63.80% on May 23.
Source: Futu Securities
If a minority shareholder has one share (20000 shares), after 50 shares are merged into one share, the stock in hand becomes 400 shares. Then to get enough of the 8000 shares of one hand under the new rules, you have to hold 20 hands (8000 Universe 400) or 20 integer times, otherwise you will definitely hold broken shares (that is, the number of shares with less than one hand).
And broken shares usually need a large discount in the market to be sold successfully, and it is often not easy for minority shareholders to make up for it. Therefore, after twists and turns, many people simply choose to sell their shares at a low price and quit. In this way, major shareholders can collect shares at a low price and dilute the rights and interests of minority shareholders. As a result, some netizens said that the chairman of the company's board of directors specializes in earning money from the poor.
The performance of the company is very poor, but the executives are well paid.
We will see that in recent years, there are some executives who are determined to contribute to the company with a "low salary", but the executives of thousands of shares are quite the opposite.
such as$Maochen Group (00273.HK) $From 2009 to 2018, the company lost money for six years, with a maximum annual loss of 755 million yuan and a minimum annual loss of 4.16 million yuan.
It is incredible that the salary of the chairman of the board is as high as 18.738 million yuan in 2018 and 34.338 million yuan in 2017!
If you look at this stock price chart, some people may not help but ask:"how can this trend and this high salary stand up to investors? "
Speculation included: speculative funds continue to pour in to buy the market value in line with the criteria for inclusion in msci, attracting retail investors to take orders at a high level.
The size of market capitalization is an important criterion for stock selection in MSCI index.On November 8, 2019, MSCI announced plans toAccor Holdings (03313.HK) $Include constituent stockIt will be officially implemented on November 25.
At that time, Accor Holdings had risen by more than 1600% since the beginning of the year, with a total market capitalization of more than HK $20 billion.
Huona MSCI naturally boosted the stock price.Accor Holdings' market capitalization reached HK $45.87 billion on November 20, but suddenly collapsed on November 21. MSCI said in a statement that it had decided to suspend Accor's inclusion in the MSCI China Index after "further analysis and feedback from market participants on investability".
Accor Holdings closed down nearly 98% on the 21st, falling to HK $1.05 billion at one point, and its market capitalization shrank by more than HK $40 billion on the day!
Since then, Accor Holdings' share price has never recovered, which can be said to make investors feel "a moment of heaven and a moment of hell".
Make a high performance and make a profit
$Hongan Group (01222.HK) $Listed on the Stock Exchange of Hong Kong in 1995, code 1222, the property is a construction company. After listing, the business began to diversify, involved in market management, shopping mall subletting, car park and property management, and involved in property development and property investment business.
Before the listing of Hongan Group in 1994, the company made a big profit of 38 million yuan, but it fell back immediately after the listing of Hongan Group in 1995, earning only 34.56 million yuan. After diversification, Hongan's performance turned from profit to loss in 1997, with a loss of 17.73 million yuan, another loss of 67.68 million in 1998, and even worse performance in 1999.
The stock price also rose first and then fell with the performance:
Change names frequently: high-end names (named after exaggerated names such as Asia, China, etc.) and love to change names
On July 27, 2017, Rome Group announced that it would buy a stake in Haotian Financial subsidiary and change its name to "China National Financial Control".China Financial Holdings (00875.HK) $Subsequently, the company's share price soared more than 28% in the morning trading on the 27th and was suspended from 01:10 in the afternoon.
As for the reasons for changing the company name, the announcement said that the board of directors believed that the name change would more effectively reflect the future business plan and development of the group.The new name will provide the company with a more suitable corporate image and identity, as well as the best interests of shareholders as a whole.
China, the state, financial control, some investors thought at first glance that it was China's state financial holding company, high-end atmosphere, ah, but if you look at the stock price and trading volume, it is naturally clear.
In addition, the performance we mentioned earlier is not good, but the executives are holding lucrative$Maochen Group (00273.HK) $And Willie International, Capital Venture Capital, Minxin Financial Holdings have a common name: 00273.HK, this company is also regarded as the "ancestor of thousands of shares."
The name of the company has changed frequently, but the claimed main business has not changed much. The company said that its main business scope is to provide economic and financial services for investors to buy and sell securities, lease properties, provide Internet and Internet-related services, and investment holding.
For investors, what is the use of a good name for a company whose share price is not good?
therefore,When we walk around the stock market with so many moths, it is better to remember the name of a stock than to remember the code of a stock.
The stock price is low, with no dividend or less dividend for a long time.
The Willie International (now Maochen Group) and Mongolia Mining (Xingkai Holdings) mentioned above are representatives of share prices below HK $1 for a long time and do not like dividends. After all, the performance is not good, and they want to keep an eye on investors' wallets. Why would you want to pay dividends?
II. Summary
We need to remember six common features:
Frequent operation of capital: frequent rights issue and partnership
The performance of the company is very poor, but the executives are well paid.
Speculation included: speculative funds continue to pour in to buy the market value in line with the criteria for inclusion in msci, attracting retail investors to take orders at a high level.
Make a high performance and make a profit
Change names frequently: high-end names (named after exaggerated names such as Asia, China, etc.) and love to change names
The stock price is low, with no dividend or less dividend for a long time.
But in addition to the above features and techniques, after all, the rules are not perfect, and swindlers are likely to keep pace with the times, constantly update their tricks, and investors need to keep their eyes open.
As Li Xiaojia said: "if you want to avoid thousands of shares, take the main road as far as possible, avoid a string of alleys, be vigilant, and make prudent decisions." "
Keep in mind in your investment:"as soon as you enter the sea, wealth will be a passer-by"!
In addition, the class representative warmly reminds you that Futu Niuniu has set up a section of "suspected Finance and Technology stocks" for your reference. I hope that cattle friends can avoid minefields:
Supplementary Finance School courses:"how to identify transaction risks in investments"
That's all for today's sharing!
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