Penny stocks were washed out

Penny stocks were washed out

The prospects for Sino-US trade negotiations are unclear, market conditions continue to fluctuate, and many GEM stocks were washed up yesterday, which fell sharply from high levels. Among them, Xingya Holdings (8293) became a penny stock. The market value has evaporated by nearly 6 billion yuan.

Hong Kong stocks are facing an eventful fall. The Sino-US trade war has not seen any signs of easing. It has been taking frequent opportunities for the short-selling darlings of many listed companies in Hong Kong. After Bosideng (3998) was slammed by the short-selling agency Bo Li Da Si, many shares of the GEM also fell on the cliff yesterday, accounting for the top of the daily decline list, including Singapore’s manpower outsourcing and recruitment company Xingya Holdings (8293) In the afternoon, it suddenly rushed more than 90%, the lowest fell to 0.091 yuan, the market closed at 0.172 yuan, the turnover exceeded 306 million yuan, the market value evaporated nearly 6 billion yuan, only the market value of 210 million yuan.

Xingya’s equity has been highly concentrated

In fact, Sin Ya Holdings is in the “list of designated securities that can be sold short”, and the remaining 9 in the short list are also at risk. In addition, the equity of Xingya Holdings has also been highly concentrated. Referring to the previous announcement of the CSRC, the Securities Regulatory Commission pointed out in February 2017 that Xingya’s equity is highly concentrated, and the top 20 shareholders hold 95%. The stock was listed on the GEM in July 2016 by way of public offering and placement in Hong Kong.

As of the end of April 30, 2019, Xingya Holdings had a loss attributable to shareholders of 2.774 million SGD (loss of S$2.058 million in the same period of 2019), and the loss per share was 0.00222 SGD. The Group’s overall gross profit margin decreased from approximately 29.4% for the nine months ended April 30, 2018 to approximately 26.8% for the nine months ended April 30, 2019.

Another GEM stock, CHI HO DEV (8423), saw a high of 2.24 yuan yesterday, a new high for 1 month. Since then, its share price has turned from high to low, at 0.235 yuan, and closed at 0.73 yuan, down 66%, with a turnover of 22.3 million yuan. The number of shares sold was 34.3 million shares. In addition, the main board Ding Shi Capital (804) also fell more than 50%, a low of 0.04 yuan, the market did not rise and fall, reported 0.105 yuan.

Shareholders’ stocks have caused stock prices to plummet

In addition to short selling, the issuance of individual shareholders’ stocks by brokers is also one of the reasons for the plunge in the formation of penny stocks. The major shareholders of mainland listed companies have mortgaged their equity for financing, causing stock prices to fall. Earlier this year, the share price of China Real Estate Jiayuan International (2768) also plunged 90%. It was originally the founder and chairman of the board of directors Shen Tianqing and his wife had nearly 100 million shares sold, with a total value of 258 million yuan. Jiayuan International also explained at the time that some of the major shareholders, Shen Tianqing, had mortgage financing, and were forced to close their positions because they failed to make up their positions in time.