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The 23Rd Issue Of Shenzhen Securities Regulatory Commission

2020/7/10 11:27:00 97

RegulationInformationDisclosureStock TradingRegulationStock PriceVolatilityWater SurfaceIceberg

On July 9, the three major indexes reached a new high, and the overall market stood at 3400, and many companies' share prices even more than doubled. For investors, to be able to meet the rising market is a happy event, but in addition to excitement or to keep a little sober.

Recently, the share prices of some listed companies without fundamental support and the concept of "hot speculation" have also "fluctuated abnormally" in this round of rising tide. If you look at the long-term cycle, it is not difficult to find that these companies' share price rise is only temporary, eventually dust return to dust. Moreover, from the internal relationship between information disclosure and stock trading, as well as the insider information revealed by regulatory authorities in the past, there may be illegal behaviors such as insider trading and market manipulation under the iceberg of abnormal stock price rise.

The 21st century economic reporter learned that because of the hidden risks behind the abnormal stock price fluctuation, the Shenzhen Stock Exchange has always regarded the abnormal stock price fluctuation as a key regulatory category, and based on its internal influencing factors, it has established a regulatory linkage mechanism of information disclosure and stock trading. Since its operation, the mechanism has achieved good monitoring effect, and many listed companies have achieved good monitoring results The risk of abnormal fluctuation of stock price is resolved in "invisible".

Unveiling the secret of "supervision linkage mechanism"

Stock price has been regarded as one of the most obvious "characterization" to measure the value of listed companies. But in recent years, the "hype" of some enterprises and investors and the information asymmetry have seriously distorted the "value" of some enterprises, and finally misled the judgment of small and medium-sized investors.

In order to break the information asymmetry in the market, the regulatory authorities have made a lot of efforts in recent years, such as continuous construction of the rule of law, continuous implementation of strict supervision and so on. The "curtain" used by listed companies to cover up the truth has been gradually uncovered, "the regulatory linkage mechanism between information disclosure and stock trading" is one of the important "weapons".

How does this regulatory linkage mechanism work?

The 21st century economic reporter learned from people familiar with the situation that the linkage supervision mechanism of abnormal stock price fluctuations mainly involves the cooperation between the company supervision department of Shenzhen Stock Exchange and the transaction supervision department.

According to the public information, the company management department of Shenzhen stock exchange is mainly responsible for the supervision of information disclosure, that is, by sending letters for inquiry, asking for supplementary corrections, etc., to urge the company to disclose material information truthfully, accurately, completely, timely and fairly in accordance with the requirements of laws and regulations and rules and regulations such as the securities law and the stock listing rules Timely take regulatory measures or disciplinary actions.

The trading supervision department is mainly responsible for the supervision of stock trading, timely detect abnormal trading behavior and take corresponding self-discipline supervision measures, timely screen suspected illegal securities violations such as insider trading and market manipulation, and report to the CSRC.

In the process of linkage and cooperation, the management department of the company will initiate regulatory linkage with the trading regulatory department according to the information disclosure, and request the trading regulatory department to investigate or pay attention to the stock trading situation for major asset restructuring and high-value transfer, and verify whether the insider information exists in the stock trading, and whether there are other abnormal situations in the stock trading, so as to fully share the information On the basis of transaction information, the focus of information disclosure supervision should be accurately determined.

According to the stock trading situation, the trading supervision department initiates supervision linkage to the company management department, uses the compliance alarm and abnormal transaction alarm of the big data monitoring system to automatically push the short-term trading, window trading and other violations to the business system of the company's management department. The company management department accordingly takes corresponding regulatory measures to deal with abnormal transactions such as serious speculation and abnormal stock price movements The situation shall be reported to the management department of the company for investigation and attention, and verification of whether there is abnormal information disclosure.

It is worth mentioning that the management department of the company and the trading supervision department hold joint consultation regularly to inform each other of the information disclosure and stock trading supervision of listed companies. Special discussion meetings will be held from time to time according to the market conditions to discuss further regulatory measures for abnormal stock trading.

Regulatory linkage to restore the whole picture of "iceberg"

In fact, from the investor's point of view, to avoid minefields in time and realize value investment profit, it is obvious that we can not only know the exterior but also ignore the inside.

The regulatory linkage mechanism adopted by Shenzhen Stock Exchange provides an important tool for investors to explore the panorama of listed companies "under the sea level".

Zhongqian shares, which has attracted much attention, is the epitome of the regulatory linkage mechanism. In 2016, the compound operating rate of diving equipment was - 8%, and the net profit rate of main business increased by only 9%. It is such a company with mediocre performance that its share price has entered the upward channel since May 2019, with the highest increase of more than 16 times.

This anomaly quickly caused widespread concern in the market.

According to the company's announcement disclosed to the outside world, the company plans to transform itself from July 2019. First, it plans to acquire Beihai Huiyu, which is engaged in big data business, at first, it plans to purchase Beihai Huiyu, which is engaged in big data business, one month later, it plans to invest 1 million yuan to set up a wholly-owned subsidiary, Beihai Zhongqian, engaged in similar business with Beihai Huiyu; then, it plans to purchase Shanghai Zhaoxin with a price of 40.81 million yuan, and continue to work in big data This year, it plans to purchase 200 million yuan in the field of storage industry.

The above-mentioned companies are not found in the case of "established companies or companies with no underlying business". Moreover, the relevant acquisition has been bumpy and long, the business of Beihai Zhongqian has stagnated, Shanghai Zhaoxin has sold it, and no formal agreement has been signed for the acquisition of Datang storage.

In addition, almost at the same time of stock price rising, the ownership structure of the company has also changed a lot. In September 2019, Fang Pingzhang and Chen cuiqin, the original actual controllers, transferred 24.46% and 9.38% of the shares of the company they controlled to Yang Zhizhi and Liu Yong respectively. The transfer price was only about 17% of the market value of the shares. Moreover, the transaction was planned as early as April 2019. In addition, Beijing Zeying, a private equity firm, has been buying the company's shares since May 2019 until it raises its brand, which coincides with the rapid rise of the company's share price.

Many clues are indeed questionable. What is the company's intention to actively disclose hot issues that fail to meet the board of directors' deliberation and information disclosure standards, and cross-border investment enterprises that have no operating data or sustained losses? Is it a coincidence that the company's share price is rising along with the change of ownership structure? Looking through the many open letters of the Shenzhen Stock Exchange, we can see that the Shenzhen Stock Exchange highly questioned the above issues.

The Shenzhen stock exchange requires the company to explain whether cross industry acquisition of loss making companies has the situation of catering to the market hot spot and hyping the stock price, the capital source of relevant shareholders' acquisition of the company's equity and whether there is related relationship, etc., and urges the company to timely disclose the reply letter and fully reveal the relevant risks. Investors may have found the answer in the regulatory letter on information disclosure of Shenzhen Stock Exchange. The company's share price has started to recover since April this year.

When it comes to insider trading, it is only necessary to examine whether there are illegal transactions in the stock exchange.

China potential shares is only a microcosm of the regulatory linkage mechanism.

Shenzhen Stock Exchange has always adhered to information disclosure as the center. Since 2020, it has issued 2281 regulatory inquiry letters, requiring the company to supplement and correct 1311. In particular, it has severely cracked down on the typical concept speculation, publicly denounced two companies, YABEN chemical and xiuqiang, and criticized Hainan Haiyao and other 9 companies through newspaper.

In recent years, we have found that there are a number of major cases with high social concern and great influence, such as "beibadao" market manipulation case, "Dalian electric porcelain" information manipulation case, Wu Gang's "black mouth" case of market manipulation, and "Chunxing Jinggong" actual controller's insider trading case We have effectively cracked down on securities violations and effectively maintained the order of market transactions.

At the 12th Lujiazui forum, the chairman of China Securities Regulatory Commission, Yi Huiman, proposed to actively implement the nine character policy of "system building, non intervention and zero tolerance", and strive to create a good development ecology of China's capital market. This can be seen from the operation of the linkage mechanism of information disclosure and stock trading supervision in Shenzhen Stock Exchange. The Shenzhen Stock Exchange has established a relatively complete regulatory linkage system, which does not interfere with normal trading behavior and zero tolerance for illegal and illegal behaviors. In combination with changes in market environment and mechanism operation, the Shenzhen Stock Exchange has made great efforts to resolve the iceberg of abnormal stock price fluctuations and effectively maintain the orderly operation of the market.

Industry insiders pointed out that ordinary investors should always be vigilant against the abnormal rise of stock prices without fundamental support, hot spots and speculation concepts, so that gentlemen do not stand under the wall, or it will be too late when the tide ebbs.

 

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