Fortune Bird Investigation, Bond Crash Crash 42% Shares Once Suspended

Fortune bird stock suspension

1819.HK is under investigation by the securities and Futures Commission.

In early March 22nd, 14 of the fortune birds (122356) flashed, plunged 42.71%, and the lowest price was 13 yuan. Then, 14 of the fortune birds were suspended at 10:51 and resumed until 14:55 PM.

On the disk, the volume of 14 fortune birds has been in a low or even no volume state.

The reason for the crash in March 22nd is that investors sold 5 bonds at a price of 13 yuan.

In fact, the price of 14 rich birds has been decreasing since March 2018. In March 1st, the riches and bird bonds fell sharply from 103.8 yuan to 17.5 yuan, or 83.14%.

However, its decline did not decrease, but intensified. In March 7th, its bond prices fell to 8.56 yuan, the lowest price since its issuance.

Although the price of the 14 rich birds subsequently rebounded, it lingered at around 22 yuan until today.

At the same time, when 14 birds of fortune and birds flicker, the issuing party: the lucky bird is being investigated by the SFC, which may be one of the factors causing the collapse of the 14 fortune birds.

The Shanghai Stock Exchange pointed out that the rich birds were suspected of information disclosure and illegal use of bond raising funds. According to the relevant provisions of the securities law of the People's Republic of China, they decided to file a survey on birds of fortune.

Rich bird said that the board attached great importance to the notice of investigation, and will make every effort to ensure that the company fully cooperate with the CSRC's investigation work, and strictly carry out the information disclosure obligations in accordance with regulatory requirements.

The 14 rich bird, issued in April 22, 2015, is the 2014 company bond of the rich bird.

The face value of the bond is 100 yuan / Zhang, the total issue amount is 8 yuan, the coupon rate is 6.3%, the term is 5 years.

In its bond raising book, a resale clause was set.

At the end of third, investors have the option to sell back.

14 the return date of the lucky birds is April 23rd.

However, in March 22nd, the rich and precious birds claimed that their repurchase funds and interest had no definite arrangement, and there was a great uncertainty in the repayment of bonds.

According to the announcement of Guotai Junan, a guaranty broker, there are a large amount of external security matters and funds borrowed by the fortune bird and its subsidiaries.

As of February 28th, the total amount of loans made by fortune birds would amount to at least 42.29 billion yuan, the relevant amount would probably not be recovered, and the current account and cash available could be less than 1 billion yuan.

Guotai Junan said the rich birds did not provide information related to the above guarantee and loan, nor did they explain to Guotai Junan the specific purpose and whereabouts of the above funds, and the whereabouts of the funds were doubtful.

Moreover, the mid 2017 report shows that the total amount of collateral guarantees is 414 million yuan, and there is a credit guarantee that has not been disclosed in time. The total amount of guarantee is 103 million yuan.

In fact, since 2013, when fortune bird landed at the HKEx, its performance has been declining.

According to the financial report, the net profit of lucky birds in 2014 -2016 was 450 million yuan, 390 million yuan and 160 million yuan respectively.

In the first half of 2017, the net profit of fortune bird turned to 10 million 880 thousand yuan, down 107.7% compared with the same period last year.