Huning Pigs Massacred

Individual stocks in China are suddenly plunging too amid what I believe is an ongoing topping process.

iFeng: 沪宁股份“杀猪盘惨案”揭秘：福建系游资因何清仓抛售？

In the absence of any abnormalities in the fundamentals, why are investors in the secondary market suddenly strangled by the "slaughter plate"? The CBN investigation found that the flash crash of the Shanghai-Nanjing stocks was directly related to the hot money of the Fujian-based brokerage business department. Since March 17, Shanghai-Nanjing shares have been on the Dragon and Tiger list four times, and the corresponding 20 trading seats with the largest selling amount, mostly from the brokerage department of Fujian, accounted for 19, of which the sales disclosed in the past three trading days The top five seats were all seats in the business department of Fujian brokerage firms. During the period, the accumulated sales amount reached more than 246 million yuan.

Behind the concentrated sell-off of Fujian brokerage seats, a number of Fujianese shareholders of Shanghai-Nanjing shares have also begun to surface. As of the end of September last year, a private equity institution named Fujian Chengyi Asset Management Co., Ltd. (hereinafter referred to as "Chengyi Assets") held a total of 3.11 million shares of Shanghai-Nanjing shares, and many of its natural-person shareholders also existed with the business department of Fujian securities firms. Intersection.

From the perspective of transaction distribution, from March 17th to 30th, the sales department seats of the Shanghai-Nanjing shares were sold in a high degree of overlap with the accounts of the securities companies held by these shareholders. For example, the sales department of Dongxing Securities has appeared in the top five of the stock’s Long and Tigers list ten times during the period, and the cumulative sales amount has exceeded 130 million yuan. The accounts of Chengyi Assets and several other shareholders are all from Dongxing Securities. .

For a long time, Shanghai-Nanjing Co., Ltd. has few public offerings, insurance funds and other institutions holding shares, while private placements and hot money have frequently entered and exited. At the end of the first quarter of last year, the company's top ten shareholders of tradable shares were all natural persons, and there has been no major change since then. Almost all of the shares held by these natural persons are leveraged by the two securities companies.

From the end of 2019 to before the flash crash, the stock price of Shanghai-Nanjing Co., Ltd. had risen by more than 2.5 times. In 2020, individual shareholders of the company were sued in court for private loan disputes. These private equity and natural person shareholders concentrated on liquidating their positions. Is the capital chain broken or is it profitable?