Can Foreign Short Selling Companies Continue To Target Chinese Enterprises And Remain Silent?

After being affected by the long negative allegations issued by the US short selling organization, the stock market was forced to suspend trading for 4 trading days, but the stock price did not slump in the 3 trading days after the resumption of trading. However, the company's stock price rose by 35%. However, the case of "lucky" such as Feng Sheng holdings is a minority after all. Usually, after close confrontation with the short selling agencies, enterprises often have a lot of trouble.

For example, some days ago, the Hui Shan dairy industry, which was short of muddy water encirclement and suppression, was evaporated 30 billion market capitalization in one day, and the stock price plunged 90% a day, setting the biggest decline record of the Hong Kong stock exchange. The green Nuo technology, which was previously blocked by muddy water, was finally forced to withdraw from the market. After being short of muddy water, the forest was forced to file for bankruptcy protection.

Although the short selling force will cause market turbulence, Chinese enterprises must not just sit back and kill others in the face of obstruction. Looking back at the past several clash, you will find that when you encounter obstacles, Chinese Enterprises If we can respond positively and restore facts, it will be hard to say who will kill the dead. In the past, when the empty institutions of citron fought with Hengda, they had thrown stones into their own feet.

In June 21, 2012, citron said that Hengda Real estate was at least 6 kinds of accounting techniques to cover up the fact of insolvency and obtained land at a low price by bribery. On the same day, Hengda shares plummeted 19.6%, and the market value evaporated more than ten billion yuan. The next day at noon, Hengda issued a 9 page Clarification Announcement, giving a powerful counterattack. Finally, 4 years later, in October 2016, the founder of citron was ruled out by the Hongkong Market Misconduct Tribunal for five years into the Hongkong market, and demanded the return of short profits. China Evergrande's share price has reached a record high.

For example, in July 3, 2012, the US Air Conditioning Research Institute, Anonymous Analytics, issued a 18 page question report that 360 of the traffic fraud occurred and should be delisted. Affected by the news, 360 shares fell 7.46% on the same day. However, 360 responded quickly, saying that the anonymous analysis of the 360 traffic fraud charges was seriously distorted, and a response was made to the key accusations. The 360 share price rebounded sharply. Anonymous Analytics short plan failed.

Again, when the stock price of Feng Sheng holdings plunged 11.89%, shares Emergency suspension. This will not only make the information disclosure of listed companies more full, but also facilitate investors to make the correct investment decisions. The two announcements issued by drow group and Fung Sheng holdings in May 2nd and May 6th, respectively, directly cut off the "grain and grass" of short selling companies.

"In the current situation, it is hard for the hedge fund's chips to continue to pose a direct threat to the stock price of the holding company." Martin, an analyst at CIC Hongkong said. Therefore, "when faced with a short period of time, Chinese enterprises must abide by the law and discipline on the one hand. On the other hand, they should respond positively and restore facts." Economist Ma Guangyuan once said so.

There are many wolves and leopards in the capital market. In recent years, the short selling ratio has been rising gradually. As of May 2016, the short selling ratio of Hong Kong stocks rose to 18.4%, the highest since 1998. Behind the rise of the short selling rate is more driven by capital interests.

"At present, some short selling agencies, including the Hongkong stock market, have their own bodies. Short selling behavior Has become a dragon, or has developed into a chain of interests, that is, short selling on stocks, and issuing research and suppression. Therefore, it can not be ruled out that some research reports are not true, which in turn leads to the company's stock price being wrongly killed. Pi Haizhou once said.

At the same time, Zhang Weiying, a former economist, has also expressed similar views when speaking about short selling agencies. In his view, there is no "non-profit" short selling organization. "The existence of short selling institutions is a utilitarianism in itself, and even by means of any means to achieve their goals."

The early incident of citron and Hengda, and the formal accusations issued by the financial supervision department of Taiwan, China in May 2014, are the best examples of the short selling of the institutions by means of interests. Therefore, when encountering short block, enterprises should do their best and restore facts in time. For investors, they should be more rational and distinguish true from false.

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