Category: Money tips Release Date: 2007-07-01
Full Circulation is coming, investors are worried that once the holdings of major shareholders will put pressure on stock prices. Actual test case under the classification of overseas studies.
Full Circulation majority shareholder after the largest shareholder class can be divided into industrial and financial class majority shareholder. Industrial categories of shareholders to substantially reduce the probability of a low. To give a very simple example, 10 years ago, if you live in the house may have only 1,000 yuan a square, and now rose to 5,000 yuan a square, up 5 times. However, since the residents will not use this as a reason for Sellers. By the same token, industrial kind of large shareholders, unless the merger or closure of business, or control over the enterprise will not be easily changed hands for others, reduction rate will be limited.
Financial kind of large shareholders usually do not operate industries, mainly from stock dividends or investment income arbitrage to obtain, it is a major shareholder of the financial class tradable on the market the next big stock holdings, currently within the legal person shares some investors, while overseas mainly because some large investment banks, overseas holdings of large investment banks and their different causes and means of:
1. Valuation changes, the reduction of last resort. H shares listed on the Rainbow E-JP Morgan Chase and Morgan Stanley, after the largest holding stock, Morgan Stanley and JP Morgan Chase holding the highest proportion of the Rainbow E-H, respectively, share capital of 32.3% and 8.33%. The average holding costs are above the 1.40 Hong Kong dollars. As the CPT industry and reduced profits and its share prices continued to plunge, Rainbow Electronics HK shares has dropped to about 0.3. Rainbow e-current stock price fell below its offer price by more than 75%. Rainbow e-listing after the poor performance of the two foreign funds had to quickly sell at a loss flesh. Similar to the changes in stock valuations after the reduction behavior of the majority shareholder, investors easier to judge.
2. By positive cash holdings. April 25 this year, Morgan Stanley stake Yongle's "lock-up period" automatic termination. Morgan Stanley's first confused market, in the April 25 to May 2 Yongle two stock holdings. Yongle and Dazhong the merger to be positive after the announcement of the acquisition, Morgan Stanley began a series of reduction operations within two months, six sub-holdings of about 3563 million stake in Wing-lok, so that it fell to about 15.3% shareholding, Shares also will be slumped. By positive cash holdings, investors have been more easily confused. Therefore, lock-up period is around the corner for some investors who often have good stocks, which actually need to guard against hidden risks. (Jiang Ren)
