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LegiEX.com is wondering what Hong Kong stock cents are

LegiEX.com undoubtedly wonders what cents are among Hong Kong stocks. Those whose stock price is less than one yuan are called "cents". The title of penny stock originally originated from the Hong Kong stock market. During the period when the British managed Hong Kong, the currency system had not been reformed, and one currency was the shilling.

According to the old British currency system, one pound is equal to twenty shillings. Stocks whose share price falls below one Hong Kong dollar are converted into British currency, which is worth only a few shillings, so Hong Kong people simply call it "first-share".

Under the influence of traditional Chinese concepts, in order to draw a lottery, at the same time, such "first-share" in Hong Kong stocks often become the "shell" of certain companies by way of listing. Once they are selected to inject new assets, they are immediately worth a hundred times and become a step Over time, it has become a "fairy stock."

With the "penny stock", those stocks that have become a "penny stock" trend and are working hard to fix the fairy have become "quasi-penny stocks". At present, for stocks with a stock price below two yuan, the market is habitually called "quasi-cent stocks".

Although it is called the "cent stock", it is actually not listed in the cents class because of its excellent texture, but it often lacks investment value and is labeled as a junk stock.

This type of stock has a higher weight in the open US and Hong Kong stock markets, but the volume and activity are relatively sluggish. For example, among the 2401 stocks in the Hong Kong stock market, there are as many as 1296 stocks with a stock price below HK $ 1, of which 265 stocks have a stock price of less than HK $ 0.1.

Since mature markets can basically follow the law of stock prices reflecting value, it is difficult for listed companies that become cent stocks to break away from fundamentals.

However, for a long period of time, the number of penny stocks and quasi penny stocks in the A-share market was significantly smaller. During the period of extreme market downturn in 1994, there was a wave of penny stocks. At that time, the price of more than thirty stocks led by Shanghai Petrochemical was less than two yuan.

But as the market improved, cents gradually disappeared. Since then, although the market has also appeared in the cents stock market, mainly concentrated in the bear market, and a limited number. Therefore, once the penny stock appears, it is easy to attract market attention.

At the same time, small and medium investors often carry a "low-priced stock" plot, just like the slogan of the two yuan store, two yuan can not buy a loss, two yuan can not be fooled, these lower-priced stocks have become rare items, Under the banner of "eliminating low-priced stocks", it is widely sought after by speculators.

On the one hand, in the eyes of speculators, penny stocks are full of speculative imagination, and if they accidentally make money, they can vigorously publicize them as gimmicks of "turning losses into profits" and "doubling performance", and quickly share prices in the next life;

On the other hand, the stock price has fallen to the bottom. You do n’t have to worry about the company ’s thunder causing the stock price to plummet, nor do you analyze whether the stock price is overvalued.

The biggest natural enemy of penny stocks is the face value. Once the closing price of the stock price is lower than the face value for 20 consecutive trading days, it will be delisted. In other words, the company ’s stocks cannot maintain the status of penny stocks for a long time. Ranked in the fairy class but lay hell.

In the past, the main reason investors had no fear of penny stocks was that they believed that after the stock price fell below the face value, the controlling shareholder and actual controller would definitely not sit back and ignore, and would adopt a multi-party strategy to raise the stock price and return to the face value, then they can Take a ride on a ride and make a profit.

However, this investment strategy has been deflated in the past two years. After Zhonghong's stock price fell below one dollar for the first time, investors still had a tantrum mentality, and there were several waves of stock prices. But when they found that the stock price was difficult to open the one-dollar mark, they struggled for a long time but turned over hopelessly, and finally determined that they would become the first A-share stock to collapse after the stock price fell below the face value to trigger the delisting condition. . Hot money that is keen on "small speculation, poor speculation, and speculation" has been a hit.

After a long experience and a wisdom, the market has obviously become rational after having the lesson of Zhonghong shares, and no longer dare to speculate on junk stocks. Six listed companies such as Huaye and Dakong have been in this year because of the stocks for 20 consecutive years. The stock price was less than 1 yuan on a trading day, and it was delisted at face value.

At the same time, the number of quasi-cent stocks on the market has increased significantly. In addition to the two delistings, Shencheng and Huaye, have "closed the gods into immortals." There are as many as 40 quasi-cent stocks, half of which are ST companies. If you put aside the recent upward trend of the ST sector, these ST companies are all in the rhythm of "getting a deity".

The market changed investment preferences and gradually concentrated on top-performing stocks, reflecting that both the A-share market and investors are maturing. The delisting system has been continuously revised, the delisting has been gradually strengthened, the investor structure has been continuously adjusted, and the investment philosophy has changed to value investment. The idea of poor performance, backdooring, and restructuring has been difficult to be recognized by mainstream funds.

The face value delisting is actually a protection measure for investors, so that companies whose fundamentals have been lost can no longer be the subject of investment. The continuous maturity of investors is the main factor for investors to be able to navigate the market.

The loss of value will cause the company's stock price and market value to sink, and eventually become a quasi cent stock or even a cent stock.

In the future, the emergence of the penny stock phenomenon does not require panic. As the market gradually matures and regulates, penny stocks will become normalized in this market, and indicators such as performance and growth will become increasingly important in measuring corporate value.

If the fundamentals are not met, investors will choose to vote with their feet, so that these poorly performing stocks reflect their true value on the stock price, and eventually become the target of no one wants to be a fairy.

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