Solve the root cause and suspend the IPO! The three major news shocks came in the early hours of this morning (112）
Yesterday's big A, are many people finally a little happy? The account has finally come back, right? After the big A hit a new low, it staged a bottoming out**, and there was a retaliatory counterattack in the afternoon. I think what everyone still wants to know at this time is: has the market bottomed out this time? Is the market stable? Will I be able to sit back and relax next time? Don't get too happy, it's still a little hot in here, you know what that is? Keep telling you what I think! If you are also facing these problems at this time!
Take a look at my point of view and read it carefully. I believe it will inspire you!
1. The lion opened its mouth, but yesterday it was already at its limit.
Xin Fengming, who has a total market value of about 30 billion, actually spent 20 billion yuan to invest in new material projects. The market outlook may be good, but investing so much money at once requires a long investment cycle and the market changes quickly. If it fails, it will cause damage to the company. It's a disaster. Even if you are absolutely sure, where will you get so much money? The company itself is worried that the funds will not be raised, which will affect the progress of the project. If a bank with such a large amount of capital cannot approve it, it will naturally have to raise funds. This is what investors are most worried about. The $1 billion private placement launched in January last year was also terminated in October last year. The 1 billion yuan raised has not yet been implemented, and another 20 billion yuan will be invested at once. To put it nicely, the company plans to put into production as scheduled, what guarantee can it use?
Who knows if it's just about making money. In short, in the current market, the market may turn a blind eye to any fundraising project, let alone a 20 billion project. Investors should keep their eyes peeled. Avoid pitfalls.
2. Let's take a look at some intraday trends. Northbound funds frantically copied the market again yesterday, with a one-time net of nearly 8 billion. But the end of the session did not continue, indicating that concerns still exist! In terms of trading volume, the retaliatory counterattack action is only in the afternoon, and the trading volume capacity has not yet kept up, and it is still around 700 billion. The true increment must exceed 800 billion or more to be effective. A counterattack without effective volume is just a hooligan. In the game of existing funds, there may be a change of attitude and the differentiation of hot spots in the sector at any time, and the profit effect is still not good! Yesterday there was still no real main guard. Judging from the previous retaliatory actions, either the major financial brokerages sounded the horn of counterattack, or Chinese concept stocks set off a round of speculation, or core assets such as white horse stocks made great efforts, but yesterday's main disk protection was still scattered.
As I have said many times in the past two days, in my opinion, the necessary condition for the market to defuse the crisis is to suspend the issuance of new shares.
Whether this rumor is true or not, it seems to me that it is only a matter of time. There are strong calls for a moratorium on the issuance of new shares, and the village will follow suit.
3. Of course, stopping the issuance of new shares cannot fundamentally solve the problem, but there is no problem with the stock price of two or three hundred points. There are a lot of problems that need to be solved to really improve.
In fact, I don't think the benefits of an IPO can be realized if it is suspended, so don't expect too much in the short term. **It's just that institutional funds are rushing away in advance of good expectations. The point is that as long as the market can stabilize and no longer hit new lows, confidence will slowly return. Yesterday, the Shanghai Composite Index hit another new low. Fortunately, the Shenzhen Component Index and the Entrepreneurship and Entrepreneurship Index took the lead**. This is something that we have been emphasizing lately. The premise of a good market is that the Shenzhen Component Index and the Growth Enterprise Market take the lead in stabilizing**. Next, the focus is on whether it will no longer make new lows.