Rendong share price has 12 lower limit, who is responsible for the
financing of the short position Stockholders owed money to the brokerage after the financing of the position, analysis: theoretically investors are at their own risk, provided that there is sufficient investor risk control education and flawless credit card
"The savings of more than 600,000 in the past few years are all covered, and now there are only 100,000." The stock price fell to the limit for 12 consecutive times. Rendong Holdings collapsed, the stock market exploded, and the stockholders wanted to cry without tears.
Some investors even said that the financing was liquidated, and they owed the broker 2 million yuan.
On December 10, Rendong Holdings opened its lower limit again at RMB 16.99 per share. Prior to this, its stock price had fallen by the limit for 11 consecutive trading days.
The successive drop of the stock price has attracted regulatory attention.
On December 9, the Shenzhen Stock Exchange issued an announcement stating that as of the close of December 8, 2020, Rendong Holdings' financing balance and credit account holdings market value reached 25% of the market value of the stock.
In accordance with regulations, the Exchange will suspend financing purchases of the underlying stocks from December 9, 2020, and the resumption time will be notified separately.
The stock that skyrocketed more than 300% this year, after 12 consecutive trading days, the market value quickly evaporated by more than 20 billion yuan.
What is the impact of the suspension of financing business at this time?
At present, Rendong Holdings still has "nowhere to escape" the financing of more than 3 billion yuan, and it can not be sold. Many investors owe money to the brokerage due to their warehouses. Who is responsible for the losses?
12 consecutive down limits, stockholders owed money to brokerages through financing
Since the beginning of this year, Rendong Holdings’ shares have risen from around 17 yuan per share at the beginning of the year to more than 60 yuan at the end of October, and on November 20, they hit the highest point since December 2016 at 64.72 yuan.
Subsequently, Rendong Holdings’ share price continued to show its downward trend, and its share price fell for several days. As of now, it has reached a limit for 12 consecutive trading days. The stock price once returned to "before liberation". The current price per share is 16.99 yuan, and the market value has evaporated by more than 20 billion.
In the meantime, a large number of retail investors poured in.
The data shows that from 2018 to September 2019, the total shareholding ratio of the top ten shareholders of Rendong controlling shareholders was more than 70%, and then the shareholding ratio gradually decreased. As of the end of September this year, the top ten shareholders held a total of 57.21 shares. %.
The number of shareholders of Rendong Holdings increased from 5,622 at the end of March 2020 to 13,100 at the end of September, which more than doubled in half a year.
At the peak of Rendong Holdings' share price, its financing balance reached 3.476 billion yuan.
After several consecutive limit drops, as of December 9, its financing balance was still as high as 3.019 billion yuan.
The liquidity of Rendong Holdings has almost lost. Except for the turnover of 423 million yuan on November 25, the lowest turnover in the past few days was only 4.35 million yuan, and the highest turnover was 21.995 million yuan on November 9.
Under the continuous lower limit, there is "no way to escape" the financing of more than 3 billion yuan.
If the stock price continues to fall, these funds will not escape the fate of being "closed out".
Shareholders continue to report on the "Stock Bar" that their holdings in the financing market are out of stock, and even some investors say that the financing is out of stock and owes 2 million yuan to the broker.
Regulatory measures to suspend "financing" aggravate the shrinking of position value
Industry veteran Wang Jianhui told reporters that the suspension of financing purchases of the stock means that Rendong Holdings will no longer appear as a target in the whitelist of brokerage financing purchases.
First of all, for investors in the secondary market, this is a loss of opportunity cost.
But the greater is the current loss, which exacerbates the further shrinking of the position value of investors who have already financed purchases.
Second, the shrinking value may intensify the selling pressure of investors, causing asset managers to face certain liquidity pressures.
If the asset allocation of the asset management party or institution is not balanced enough, it may be transmitted to other portfolios, and the impact is more reflected at the brokerage level.
Li Shengsheng, CEO of Shenzhen Shensheng Investment Consulting, told reporters that the suspension of financing business is to protect investors, stop losses in a timely manner, and prevent further expansion of the injury.
Many brokerages have made adjustments before the introduction of the regulatory policies.
Wang Jianhui said that in the face of market volatility, preventing losses from expanding is the primary task.
"In terms of risk prevention, operating institutions can take the lead in supervision. Institutions want to narrow the scope of financing targets. They are fully capable of this, and regulations allow it."
■ Follow up
Who is responsible for piercing the warehouse?
Some investors have raised questions in the stock bar, who should be responsible for the money owed to the broker after the position is broken?
Wang Jianhui said that investors suffered losses due to the liquidation of financing and investment, and the theory should be that investors are responsible for themselves and bear their own risks.
Li Shengsheng also gave a similar view on this.
Wang Jianhui emphasized that the premise for investors to bear their own losses is that brokerages and other intermediaries have done adequate investor risk control education, and the preliminary preparations are flawless; in addition, listed companies have no flaws in information disclosure, so that they are timely, effective and accurate. .
"Specifically, do brokerage agencies have sufficient risk warnings when investors purchase relevant products or conduct financing activities? Are their research reports and investment advisors’ guidance opinions fully disclosed and detailed? For example, if a certain link When there are problems such as exaggeration, investors can claim to defend their rights." Wang Jianhui said.
He also said that if a listed company has major flaws or violations in information disclosure, which causes investors to finance purchases without their knowledge, investors can also claim compensation.
In addition, at the level of market transactions, whether there are some institutions colluding to raise or suppress the stock price to manipulate the market, if this phenomenon occurs, the investors and intermediaries who suffer losses can claim rights to the responsible parties.
Xie Xiaoyong, a partner of Anjie Law Firm, said that stockholders' financing through securities firms is supported by financing agreements, and the securities firms have the right to require investors to repay the money; the shareholders generally bear the losses caused by the stock price drop and their positions.
If the brokerage firm fails to perform its duties, it can be held accountable; if the stockholders can find the fault of Rendong Holdings, they can also sue Rendong Holdings for accountability.
Lawyer Du Zhaoyong of Jingding Law Firm believes that the key issue of this incident depends on the official investigation, to see whether there are any violations of the securities law, public security law, and criminal law, and whether anyone manipulates the securities market. After verification, the decision is made whether it is administrative punishment or criminal The case was transferred to the police.
Margin trading business is one of the key businesses of securities firms.
Wang Jianhui said that the financing business of securities firms has been developing for many years, the system design is relatively strict, and the threshold for target selection is also high, and the overall progress is smooth.
Risk situations such as Rendong Holdings are rare, and they have a certain relationship with the impact of the epidemic this year.
He suggested that in the future, brokerages need to consider more comprehensively in the mechanism or system design and prevent more black swan events.
He gave an example that under normal economic conditions, for example, 10 consecutive limit-falls means a fluctuation in the market, but in a relatively severe economic situation, the impact of 10 consecutive limit-falls will be greater than before. At this time, it may be necessary to advance. Action to reduce risks.
Beijing News reporter Hu Meng