A shares fell sharply again. On March 14, the stock index fell 2.61% to close, and a large area of individual stocks floated green, which depressed 200 million investors.
But in a bleak, the securities sector tried to protect the market again. In particular, the secondary new share Boc International (China) Co.Ltd(601696) , became the leading stock of securities companies that day, and finally closed at the limit.
After hours, Boc International (China) Co.Ltd(601696) announced that the deviation of the closing price increase of the company’s stock trading in two consecutive trading days on March 11 and March 14 exceeded 20%. According to relevant regulations, it belongs to abnormal fluctuation of stock trading. After the company’s self-examination and written letter to the largest shareholder, as of the disclosure date of this announcement, there are no major events or important information that should be disclosed but not disclosed.
the amount of seats sold is greater than the amount of seats bought. Withdrawal of funds from Shanghai Stock connect
Boc International (China) Co.Ltd(601696) has also been on the trading list due to the rise in the limit for two consecutive trading days.
According to the after hours data of Shanghai Stock Exchange, on March 14, Boc International (China) Co.Ltd(601696) closed at 13.04 yuan, an increase of 10.04%, the turnover rate was 11.14%, and the turnover was 2.072 billion yuan. From March 11 to March 14, the increase was 21.08%, the cumulative deviation value was 22.26%, and the range turnover was 2.46 billion yuan.
Among the top five buyers, the first one Guotai Junan Securities Co.Ltd(601211) Shanghai Branch bought 796198 million yuan, and the second one Huatai Securities Co.Ltd(601688) Wuxi Liangqing Road business department bought 52.16 million yuan. Third place Everbright Securities Company Limited(601788) Ningbo Yongjiang Avenue business department bought 308393 million yuan. The fourth East Asia Qianhai securities Shenzhen Branch bought 269101 million yuan, and the fifth Huaxin Securities Shanghai Shanghai Lujiazui Finance & Trade Zone Development Co.Ltd(600663) business department bought 266387 million yuan.
Among the top five sellers, Changjiang Securities Company Limited(000783) Shanghai Dongming Road ranked first, selling 112 million yuan, and Citic Securities Company Limited(600030) Shanghai Wujiaochang business department sold 914863 million yuan, ranking second. The Shanghai Stock connect ranked third with a sales of 354373 million yuan Boc International (China) Co.Ltd(601696) Shanghai Ouyang Road business department and Huaxin Securities Shanghai Shanghai Lujiazui Finance & Trade Zone Development Co.Ltd(600663) business department were also on the list.
Overall, the top five buyers of seats bought a total of 216 million yuan, and the top five sellers of seats sold a total of 301 million yuan. The top five sellers are still much larger than the top five buyers. It shows that after a short-term rapid rise, its chips may tend to be scattered, and investors need to be cautious if they catch up.
seller research: downward opening of stock price and valuation and allocation time point of securities business sector
From the perspective of the recent market, after the sharp decline of a shares, many seller research institutions are still cautiously optimistic about the future market. Accordingly, a number of analysts also expressed optimism about the securities sector, which has been at a low valuation.
For example, China Post Securities pointed out that the average daily turnover of the two cities has reached trillion recently, which has become the norm, and the pressure on the short-term brokerage business and wealth management business of the securities industry has been relieved. At the same time, the reform and innovation of the securities industry in recent years, such as fund investment adviser, new regulations on asset management and the implementation of comprehensive registration system in the future, will greatly stabilize the performance fluctuation of the securities industry, The short-term market fluctuation does not change the good momentum of the medium and long-term performance of the securities industry.
Since the beginning of the year, the securities sector has shown a correction trend 4X, at the 0.68 quantile level of the high point, with a high margin of safety. Considering that a number of securities companies have recently disclosed performance forecasts and express reports, which show that the growth rate of revenue and net profit has increased steadily, and there are many bright achievements, the fundamentals of securities companies have not deteriorated, and the downward trend of stock price and valuation has opened the allocation time point.
early stage Boc International (China) Co.Ltd(601696) under the pressure of reduction of initial shareholders, the ban on unlimited share sales will be lifted this year
However, there is another question – why do funds only favor Boc International (China) Co.Ltd(601696) , among the securities companies in the past two days.
Judging from the Boc International (China) Co.Ltd(601696) recent announcement, the company is extremely low-key. Since 2022, including the announcement of abnormal trading fluctuations just issued, Boc International (China) Co.Ltd(601696) has issued only six announcements in total.
It can also be seen from the figure below that Boc International (China) Co.Ltd(601696) early stage has been affected by the reduction of shareholders’ holdings. The latest announcement related to the reduction was released on March 2. 152 million shares of the company held by Shanghai financial development investment fund were listed and circulated on February 26, 2021. Then, in October 2021, the financial development investment fund issued an announcement to reduce its holdings in the form of clearing Boc International (China) Co.Ltd(601696) . As of February 28, the financial development investment fund had reduced 33.03 million shares of the company. In addition, earlier, the cloud investment group also reduced its holdings of Boc International (China) Co.Ltd(601696) .
Boc International (China) Co.Ltd(601696) 2020 was listed in February, and now it has just completed two years. Its experience of lifting the ban on restricted shares and reducing the holdings of initial shareholders is also the inevitable experience of many new shares. In terms of timing, Boc International (China) Co.Ltd(601696) this year, there is no plan to lift the ban on unlimited share sales, and it will not be lifted again until February next year. To some extent, after the reduction of important shareholders in the early stage and the decline of share price, the market has largely released its concerns about Boc International (China) Co.Ltd(601696) future bearing the impact of the lifting and reduction of restricted shares.
In addition, judging from the current market value, Boc International (China) Co.Ltd(601696) circulation market value is not high. On March 14, its circulation market value was only 18.9 billion yuan, ranking 11th in the sector Among the brokerage stocks that rose on March 14, Guosheng Financial Holding Inc(002670) , Chinalin Securities Co.Ltd(002945) etc. also have low market value.
However, it should be pointed out that during the recent sharp decline, a number of listed securities companies issued performance letters or operating instructions, Boc International (China) Co.Ltd(601696) without such action, they were favored by funds. This can only show that it is sometimes a metaphysics to explain the rise and fall of a single stock on one or two days; To practice long-term investment, we need to keep track of the industry and companies and make prudent investment decisions.
