"Overseas Listing" Investment Myth

The process of making money is like this: a company claims that it will soon be on the market overseas, and that if it buys its stock before listing, it will have a net income of more than 100% in two months.

However, such investment "myth" has been helped in Shanghai and other places a year ago.

But in Beijing, the same "legend" is still being interpreted.

Ms. Zhang of Beijing recently encountered such an opportunity.

A property broker introduced her "once in a blue moon" opportunity: a tourist company in Xi'an now spends only 5 yuan / share on its stock. When the company listed on the Nasdaq Stock Exchange (NASDAQ) in September, its stock price can rise to at least $5. At present, it can earn 8 times earnings. Moreover, if the company fails to list on schedule, the company will repurchase it at a price of 0.1 yuan per share.

On the following weekend, Ms. Zhang was invited to another investor meeting of a property broker company.

A "senior" analyst first talked about the original stock of the year: "when China was just a stock market, no one knew what the stock was, it was all on sale, buying stocks to complete the task, but afterwards proved that all those who bought it all made a lot of money."

As soon as the battle is over, analysts begin to get to the point and introduce a similar investment opportunity. The only difference is that these stocks will be listed overseas.

According to introduction, this is a pharmaceutical company located in Hubei. At present, the listing price on the local property exchange is 4.8 yuan / share. At the shareholders meeting held in April 8th, the company will announce the 2005 allocation plan for every 10 shares to send 3 shares.

If you buy 10 thousand shares now, it means that 13 thousand shares will soon be held.

More exciting is still behind, the company will be listed on the gem in Singapore in June. According to the analyst, the 1 shares of domestic companies listed in Singapore will be split into 3 to 10 shares. If the most conservative share is split into 3 shares, the 13 thousand shares will become 39 thousand shares in a twinkling.

After the listing, it is calculated that the stock price is 0.6 new yuan, and the total market value of the 39 thousand shares will reach more than 20 thousand new yuan. According to the current bank price, the 1 new yuan is equivalent to 5 yuan RMB, so that within 2 months, the net income has been close to 70 thousand yuan, and the yield is over 131%.

"The sooner you buy, the more cost-effective it is. The closer the listing, the higher the price. In October of last year, its quotation on the property exchange was only 3.5 yuan / share."

The analyst shouted.

When the domestic A share market is still lingering ahead, most of the audience is ready to face such an opportunity.

In order to find out more information, Ms. Zhang then searched the "property broker company" on the Internet, which surprised her.

At the beginning of last March 15th's "Consumer Rights Day", there were articles such as "vigilance trap", "overseas listing" companies, and "traps in the first and half markets" to expose "scam" to the US stock market. Moreover, the underground stock market in Xi'an was repulsed by the concept of "offshore listing".

According to media reports, these frauds with the name of "overseas listing" are mainly concentrated in cities such as Shanghai, Chengdu, Xi'an and so on. The tactics used are almost the same as those in the two cases mentioned above.

After more than a year, why did the scam resurgence in Beijing?

These two property rights brokers have issued a business license to Ms. Zhang, one of which was founded at the end of last year, and the other one was just set up in February.

That is to say, the new company law, which began in January 1st this year, provides an excellent excuse for these companies to come back.

The 144th law of the old company law stipulates that "shareholders pfer their shares must be carried out in a legally established securities trading place", and the 139th of the new company law stipulates: "shareholders pfer their shares, shall be carried out in securities trading places established according to law or in other ways prescribed by the state Council."

This is in fact recognition of the legality of the pfer of unlisted shares in various property rights trading institutions.

In the Shanghai property rights network, an equity listing system for the equity exchange shows that 23 companies will be listed in the UK, Singapore, Hongkong, the NASDAQ and the New York stock exchange.

The two biotechnology companies listed on the Xi'an equity exchange have also told the newspaper that they will submit the listing application to the SFC by the end of May.

Part of the property exchange of the local SASAC is engaged in the pfer of state-owned shares. Most of the pfer of property rights of non-state-owned shares are operated by various exchanges with different backgrounds.

At present, there are only 83 property exchanges registered on the China property exchange network.

However, these property exchanges do not investigate the authenticity of listed company.

"We only do information disclosure, specifically whether you want to invest or to control yourself, so we need to know the company."

A staff member of the property exchange said.

But it seems that all kinds of questions can not be answered from those listed companies.

These are natural shareholders' own wishes, and the company will not interfere.

Some of the shareholders may feel that they have made money, and they are safe.

A Limited by Share Ltd Securities Division said.

The chairman of a joint stock company even said to the newspaper: "most of them are buying houses and rushing to spend money. We are going to be listed overseas soon. If it is not for urgent use, who will pfer it?"

Truth seems to be acquired only in the personal experience of those who have already bought.

A case on Xinhua net on the Internet has restored the experience of an investor being cheated: in June 2004, after attending a financial lecture held by a property broker company, Mr. Lin of Shanghai bought 50 thousand shares of a company with 4.2 yuan / share (RMB). The company said it was going to be listed on NASDAQ in November 28th of that year, and its share price could rise to $4 after listing.

Mr. Lin and Mr. Lin signed the agreement on equity pfer, and soon acquired the equity holding card issued by a stock trustee company.

In September 2004, the equity holding card was replaced by a so-called "US equity certificate" in English.

At the end of 2004, the stock company was still not listed in the United States. Mr. Lin, who was growing suspicious, asked a property broker company. He was told that the agency business of the company was over, and that he should directly ask a joint stock company about the issue of listing.

The company said that the conditions were not yet ripe, and the listing was still in preparation.

Since then, Mr. Lin has repeatedly asked questions, the stock company has all sorts of reasons, repeatedly stressed that the upcoming listing, we must be patient.

According to the agreement, if the company could not be listed for a variety of reasons, the company promised to float 12% repurchase per year net asset per share.

By March 2005, Mr. Lin decided to redeem his shares and demanded that the company fulfill the promise of a premium of 12% repurchase shares.

The company agreed, but told Mr. Lin that the company's net assets per share last year were only 1 yuan, that is to say, it could only buy shares at a price of 1.12 yuan per share.

Mr. Lin, who was deceived, reported to the police.

According to the police investigation, the stock bought by Mr. Lin is 4.2 yuan per share, of which the brokerage company withheld 2.5 yuan as the handling fee, in fact, only 1.7 yuan was handed over to the joint stock company that pferred shares.

"All these stories have a common feature: whether or not they can be listed on the premise that they can make money, but we understand that many of these shareholding companies listed on the property exchange are not very large, and the possibility of listing on overseas exchanges is not large, and although the gem does not require performance, it has high demand for growth, and these companies do not have any special advantages," he said.

Liu Bingjun, general manager of detailed international investment company, which is listed in Singapore by domestic enterprises, thinks that