Chapter 1481 [Listed companies in the Qunxing system never pay dividends, they only buy back stocks

During this period, Fang Hong lived his life on time. If nothing unexpected happened, the "mask incident" would come in about two months, and the global capital market would experience a super flash crash because of this incident.

Under this general trend, the SGX market is definitely not going to stay out of it. In fact, because it has been a bull market since its opening in 2016, it will bring an unprecedented collective escape.

In this situation, a round of plunge is inevitable, and any stock market has to bear it together.

However, Fang Hong also wants to take advantage of this historical opportunity to achieve what he wants to do. First of all, this plunge is also a good time window for clearing and changing hands. The profit funds accumulated over the years will definitely flee.

They left and changed hands, allowing new funds to take over, laying the foundation for the SGX 50 Index to break through 10,000 points and attack 20,000 points later.

Through this time window, we can also reduce the impact of Xingyu Technology and Matrix Quantum, the two "big and small kings" of the SGX market, on the index. To stabilize in the subsequent plunge, these stocks must be cancelled by large-scale repurchase of stocks from the secondary market.

The operation of repurchasing stocks can actually be understood as a "slimming" operation for the company's market value. When holders withdraw on a large scale, a large amount of liquidity is needed to support it. If there is not enough takeover funds, and the holders inside withdraw on a large scale and sell at all costs, the stock price will definitely plummet.

At this time, Xingyu Technology came out to repurchase stocks to provide liquidity for the secondary market, allowing the previous investors to withdraw with principal and interest. The reflection on the market is that the trading volume is huge, but the stock price has not plummeted.

For example, the current total share capital ratio of Xingyu Technology is 275.355 billion shares, and the stock price is 68.24 yuan. Assuming that there are a large number of holders who are ready to cash out and leave the market, the amount is 75.355 billion shares. With such a large amount of withdrawal, under normal circumstances, the stock price will be smashed to half and then cut again.

But if the company repurchased 75.355 billion shares and cancelled them at this time, so that the stock price remained at 68.24 yuan, the sellers would withdraw their principal and interest, and the holders would not be affected. If they believed that the company would rise in the future, they would continue to hold it, otherwise they would sell it at this time.

At this time, the company's total share capital dropped to 200 billion shares, and the stock price remained unchanged at 68.24 yuan. Then the corresponding total market value would drop from 18.79 trillion to 13.648 trillion, and the company's market value would be slimmed down, thereby reducing the impact on the New Securities 50 Index.

But at the same time, investors who still hold the same number of company shares and the same market value will increase their equity ratio in the same proportion, which means that their voting rights will increase.

For example, the equity ratio of 20 billion shares held before was 7.26%. After the repurchase and cancellation of 75.355 billion shares, the equity ratio of 20 billion shares held in the company increased from 7.26% to 10%.

Neither Xingyu Technology nor Matrix Quantum, including all the subsidiaries of Qunxing Star listed on the SGX market, have paid dividends so far.

Because the SGX market does not have a rigid requirement for dividends, according to the description of the market, dividends are voluntary actions of listed companies, and whether a company pays dividends depends mainly on the company's financial situation and business strategy, rather than external laws or regulations.

In fact, dialectically speaking, when a company decides to start paying dividends, it is telling investors that the company's upward momentum has come to an end, it is impossible to get bigger, and it is unlikely to expand in the future. Just keep the basic plate and share the money earned with the shareholders.

If the company can still maintain a strong upward momentum, it should reinvest the profits earned in expanding reproduction instead of distributing the money earned, which will eventually reflect the expansion of the company's total asset scale, and if it is a listed company, it will reflect the rise in stock prices.

For these listed companies in Qunxing Star, Fang Hong will not let them start dividend operations. If a company really makes too much money and the company's cash reserves are too much to spend, it will not pay dividends, but will use funds to repurchase the company's shares from the secondary market and cancel them, thereby driving up stock prices to reward shareholders and investors.

If shareholders or investors want cash flow, then you can just sell stocks in the secondary market to cash out. This will actually earn more than dividends. After all, for small shareholders, the actual amount of money they receive from dividends is definitely not as much as that of large shareholders.

However, if the dividend funds are used to repurchase stocks and the stock price rises by 20 or 30 points, then the holders sell some of their stocks to cash out, which is much more than the cash dividend.

Unless all shareholders sell and cash out when the company repurchases stocks, the stock price will definitely rise.

But in fact, some people will cash out and some will choose to continue holding. It is impossible for all people to sell or hold at the same time.

Therefore, the repurchase operation generally drives the stock price up.

Fang Hong does not allow Qunxing Star listed companies to pay cash dividends, which is to use these funds to provide liquidity for the capital market, support the company's own market value, and also have an overall stabilizing effect on the SGX market.

The company uses the money to repurchase its own stocks. Whether investors continue to hold them or sell and cash out when there is sufficient liquidity, let them play the game.

If it is a direct cash dividend, the money will go into the accounts of all investors, but they may not all use it to buy the company's stocks again.

When the market plummets, investors are even less likely to buy stocks. Instead, they will sell the stocks they already hold, further pushing the market down. Especially when the market plummets, the company itself takes out money for a large-scale review, which is self-evident in stabilizing and supporting the market.

The company's stock repurchase operation is equivalent to using the money originally intended for dividends to all shareholders to repurchase its own stocks by the company, which is equivalent to letting all shareholders buy the company's stocks in disguise. The dividend money is reflected in the rise in stock prices and the growth in the market value of the holders. At this time, let the holders decide whether to sell or not.

Selling some stocks is equivalent to cashing in dividends and putting them in pockets.

Not selling and continuing to hold is equivalent to reinvesting dividends, betting on greater returns in the future, but also bearing corresponding risks.

If the stock price continues to rise in the future, you can earn more. If the stock price falls in the future, it means that the dividend money will be lost. The option is given to investors, so no matter the profit or loss, the investors will bear it themselves, and no one can be blamed.

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At this moment, the call auction in the SGX market has ended. The SGX 50 Index opened low today, because Xingyu Technology opened low by -1.56% today. After the opening at 9 o'clock, Xingyu Technology opened low and went low.

Because several market makers of the company are suppressing the market, and the profit-making funds in it see this trend and feel that it is not as expected, they also start to cash in their profits.

The decline of Xingyu Technology also led to the SGX 50 Index opening low and going low.

Today is the day to open the second batch of vehicle reservations. The whole market is paying attention to this. Fang Hong wants to create a short-term positive realization phenomenon for the market at this time. If the second batch of reserved vehicles today exceeds expectations, it is a positive realization. If it is not as expected, it is a negative. The previous increase of +25% has to fall back.

In short, no matter what happens today, Xingyu Technology will fall back rather than rise.

The entire market and the car industry are watching the time node of 10 am, because the second batch of reservations will start at 10 am.

As time passes by, it is getting closer and closer to 10 am. Car owners and consumers from all over the country, as well as some "scalpers" are gearing up to rush to order. The premium rate of N3 and U3 in the second-hand market is so high that the emergence of "scalpers" is inevitable.

Finally, the time came to 10 am, and the second batch of 100,000 reservations for Xingyu Technology's SCN-3 and SCU-3 cars were officially opened!

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