(Financial World) Many Chinese stocks have changed their stock prices and set off a “meltdown tide” in the US
China News Agency, Beijing, June 11 (Reporter Chen Kangliang) The stock price of the stocks in the US stock market changed overnight, and the stock prices of many stocks skyrocketed, triggering a fuse mechanism and causing widespread concern.
In the trading day just past, many Chinese stocks collectively skyrocketed, triggering a stock breaking mechanism. As of the close of US stocks, Jiayin Jinke surged more than 96%, and it once surged nearly 1000%; Wensheng Financial rose more than 170%; the financial sector rose more than 51%; and the stock price surged 12 times on the previous trading day, triggering 14 meltdowns Many of the "devil stock" houses rushed higher and fell back, and eventually closed down by 66%. Their "roller coaster" trend also triggered multiple blows.
According to media statistics, in the past trading day, the Chinese stock market staged at least 80 meltdowns. Wensheng Financial has the most fuse times, and the stock has fused 27 times; Fang Duoduo staged 23 times.
Public information shows that since 2010, US stocks have implemented a stock-fuse mechanism. If the trading price of a single stock exceeds the fluctuation limit within 5 minutes, the trading needs to be suspended. The specific fluctuation limit depends on the type of stock. For example, if the stock price is above 1 USD and below 1 USD, the price fluctuation limit can be 10%, 30% or 50%.
In response to the question of why China’s stocks are soaring and triggering fuse, Chen Zunde, general manager of Guangdong Fande Investment Co., Ltd., said that the main reasons are concentrated in three aspects: first, the trend of US stocks is warm, the Nasdaq is at a record high, and the overall market is active; second, Most of the Chinese stocks have little circulation, and once the funds enter the market, the stock price is likely to rise quickly. Third, the Chinese stocks have returned to the trend, and there is an expectation that the valuation will increase, so there is short-term speculation.
Recently, the "return to listing" of the stocks of many stars such as NetEase and JD.com has attracted widespread attention and has been sought after by investors. For NetEase, which is listed in Hong Kong today, its share price opened more than 8% on the first day of listing, with a total market value of more than 450 billion Hong Kong dollars. In the previous public offering of stocks in Hong Kong, NetEase received an oversubscription ratio of more than 360 times.
Dong Dengxin, director of the Institute of Financial Securities at Wuhan University of Science and Technology, said that the recent suppression and hostility of US securities regulators to Chinese stocks may push more Chinese stocks to delist in the United States and return to the Hong Kong or A-share market.
The US Senate passed the Accountability Act for Foreign Companies on May 20, requiring foreign companies listed in the United States to strengthen compliance with the country’s regulatory standards.
It is reported that the bill requires foreign issuers to fail to meet the requirements of the PCAOB's inspection of accounting firms for three consecutive years, prohibiting their securities from trading in the United States.
In addition, the bill also requires listed companies to disclose their relationship with the host government. If a listed company employs an accounting company that is not regulated by the United States, which prevents the US review agency from auditing its financial reports, the bill requires the company to prove that it is not owned or controlled by the host government.
In response, the China Securities Regulatory Commission quickly responded. The head of the relevant department of the China Securities Regulatory Commission said that from the perspective of the bill and the comments of the relevant people in the US Congress, some provisions of the bill directly target China, rather than professional considerations based on securities regulation, and firmly oppose this politicization of securities regulation. .
Song Yang, Managing Director of Huaxing Capital and Head of International Equity Capital Markets, said a few days ago that there have been a number of Chinese stocks inquiries related to the secondary listing in Hong Kong. It is expected that the new stock market in Hong Kong will become active in the second half of this year. 50 to 60 Chinese stocks went public in Hong Kong. (Finish)