Chapter 1423 [Supplementary items of new delisting rules]

Bionic Power Company's unexpected performance forecast also allowed investors to see the charm of technology stocks. Technology stocks currently account for an absolute proportion of the SGX market, which is also the reason for the large fluctuations in the SGX market.

The charm of technology stocks lies in the characteristics of high growth. Although the current P/E ratio of hundreds of times can be called a market dream rate, as long as the value breaks through, the P/E ratio of hundreds of times can be quickly digested within one or two years, blowing up the bubble. Can be filled by value growth.

Of course, the risks are also very high, and not every technology stock can rise.

Investors are certainly aware of this, so the label "Galaxy" has extraordinary value. If you look at the hundreds of billion-level technology large-cap stocks on the SGX market, the price-to-earnings ratios are actually not low.

These companies are in the same industry segment, and investors give them a higher price-to-earnings ratio than other technology stocks. The reason is also very simple. The label "Galaxy" will make investors feel much more reliable, and Companies in the galaxy are often the leaders in their respective industries. The probability of explosion is much lower, and the growth potential is not weak.

In this way, investors are naturally more willing to hold such asset targets, and they are willing to pay even if the premium is large.

…

But in the capital market at this moment, around 10 a.m., the NSE 50 Index's increase expanded to +0.65%, and the index rose to 4583 points, officially breaking through the historical high of 4582.78 points on September 26, 2018 last year. reached a record high.

When the NSE 50 Index reached a new high, Big A investors were also excited. Half a month ago, everyone thought it would hit a record high in one fell swoop. However, three breakthroughs failed, and they all thought it was unlikely before the holiday. .

Unexpectedly, the SGX market gave such a surprise on the last day before the holiday. It broke through when everyone thought it could not be broken.

Investors expressed that they can now celebrate the Chinese New Year happily.

In the afternoon, the NSE 50 index further expanded its gains, not only breaking through a record high, but also standing above the 4,600-point mark on the last trading day before the Spring Festival.

The two markets next door also performed well today. The Shanghai Stock Exchange Index also recovered the 2,600-point mark today. Stocks in the three major markets showed a general upward trend. Only more than 200 of the more than 4,000 stocks were in the green market, and the rest were in the red market.

The large financial sector performed well. The brokerage sector, which has recently experienced five consecutive losses, opened higher today, with the sector rising by nearly 3.5 percentage points.

The performance of securities companies in 2018 is not bad, especially compared with the current position, it is definitely in the historically low valuation range. However, the trend of this sector is often not based on performance.

As of the close, the NSE 50 Index closed up +1.61%, at 4626.81 points. The index went out of the bald Yang line, and the closing price was the highest price of the day; the Shanghai Stock Exchange Index closed up +1.30%, at 2618.23 points; the Shenzhen Component Index rose +2.74% , reported 7684.00 points.

The total turnover of the three major markets was 1.0684 billion, of which the SGX market had a full-day turnover of 806.7 billion.

From the perspective of volume, today's market is shrinking. Because it is the last trading day before the Spring Festival, there is no large-scale inflow of over-the-counter funds. This is a domestic characteristic, because the current time node is to celebrate the New Year and everyone has to spend money. .

There is not much outflow of funds on the market. Today's outflow can only lie in the account and cannot be withdrawn. Moreover, the market has soared, it is better to hold it. If you want to withdraw the funds that need to be withdrawn, all the funds that need to be withdrawn have already left yesterday.

…

With the arrival of the Spring Festival holiday, which lasts until the sixth day of the first lunar month, which is the weekend of February 10, this day is also the last day of the Spring Festival holiday. Fang Hong also returned to his hometown for the New Year this year and returned to the new city today.

Meditation in the villa.

At this moment, Fang Hong was in the large living room on the first floor. There were several bundles of bright red cash notes on the table near the sofa in the living room. Each bundle contained 2,019 red notes, and the thickness of a single bundle was about 25 centimeters.

Lin Yan, Lin Yun, and Eve Lei are also back. At this moment, they are all gathered in the living room to wish Fang Hong New Year's greetings. Naturally, the New Year's red envelopes are indispensable.

Fang Hong, who was sitting on the big sofa in the living room, crossed his legs and looked around at the girls and said with a smile: "Each of you can carry a bundle. You can take it yourself."

The sisters all laughed and said in unison: "Thank you, Brother Hong."

After saying that, they each carried a bundle, and the sisters were all filled with happy smiles after receiving the red envelopes. This has become a routine. Last year, the bundle contained 2018 red tickets, and next year there will definitely be 2O2O red tickets.

After a while, they all went about their business. Tian Jiayi then came to the living room and brought him a message: "Do you know about the news that just came out? There are rumors going around that the two cities next door are also going to release news. New delisting regulations.”

Hearing this, Fang Hong said with a half-smile, "I know how to play."

Tian Jiayi sat down next to him and said: "The management of the two cities did not come out to respond in time, which is quite intriguing. Judging from the market reaction, everyone was very excited and interpreted it as good news, thinking it came from the SGX market. The pressure has forced us to make changes.”

Fang Hong said calmly: "Let them go ahead and watch the show. Anyway, the SGX market is also gaining momentum now."

Tian Jiayi then said: "In addition, the SGX market has launched a second round of internal discussions on the new delisting rules. Everyone agreed to take advantage of this new rule to add one more item. Encourage companies to self-valuate and quote when registering for listing. Listed companies need to make a valuation of their own market value that they believe is reasonable and provide a quotation to the market, which will help improve the transparency and accuracy of corporate valuations."

Obviously, this supplementary item is a backstop for the previous delisting rules. The previous rules were that the market fair value of delisted companies should be assessed by a third-party professional appraisal agency, and listed companies should repurchase stocks from public investors at this fair price.

However, this rule actually has a loophole, that is, if the CEO of a listed company hollows out the company through operations such as "emptying the cage and replacing the bird", then when the third-party agency goes to evaluate, the result of the evaluation is that the company is insolvent, and the stock price should plummet by another -99% to be reasonable.

Tian Jiayi added: "According to the SGX, if a listed company commits fraud or violates regulations and is forced to delist, it must repurchase the shares held by public investors according to the valuation quotation given at the time of issuance. After the third-party evaluation agency evaluates the fair value, if the fair value is lower than the issue price, it will repurchase at the issue price; if the fair value is higher than the issue price, it will repurchase at the fair price. If the company is delisted due to its own poor management, it will repurchase at the assessed fair price."

This supplementary provision is obviously aimed at fraudulent behavior. The poor management of the company itself is a long-term process, which will be reasonably reflected in the stock price, that is, the downward trend. Investors cannot blame others for losses. As long as the company discloses information in a timely manner and does not falsify performance, investors can only bear their own profits and losses. If the company is delisted, it will be evaluated by a third-party agency. The company will repurchase at the actual value of the company. If there is no money to repurchase, it will be liquidated by auction.

For example, when a company was listed, the issuer reported a valuation of 3 billion yuan for listing. Now it is indeed delisted due to poor management, but not illegal fraud. The assessed value is 500 million yuan, so it will be repurchased at 500 million yuan.

However, if it is found that the company has committed fraud and violations and is forced to delist by the exchange, even if the fair value is now assessed to be 500 million, it must be repurchased according to the issuer's previous offer of 3 billion valuation. Because the nature has changed, it has become a fraud that has killed the company and harmed the legitimate interests of all investors. The issuer must be responsible for this. No matter how high the issue price was previously, it must be repurchased at that price now that it has been forced to withdraw.

If the company's poor management leads to a sharp drop in stock prices, it is the investor's own poor vision. The loss is naturally borne by the investor, and no one else can be blamed. However, if the stock price plummets because the company commits fraud and violations, it is a fraud that harms investors, and the investor's losses must be borne by the issuer.

... (End of this chapter)