What is "old thousand Shares"

What is "old thousand Shares"? Usually is the lower market value, casually tens of thousands of yuan can be able to make a change in price, cheat ordinary retail money stock. Feng Hongyuan Summary, the following categories of shares try not to touch:

1. Shares with a market value of less than HK $3 billion

Such shares tend to fluctuate greatly, volatility, and sometimes some shell rumors of speculation high share prices, but in fact, if the company's market value is low for a long time, reflecting the market for its long-term outlook is weak, otherwise the company has been raising shares and other ways to raise market value, to get rid of low market value dilemma.

2. Excessive financial and technical shares

Constant issuance of shares, stocks, joint stock, usually very dangerous, according to the rules of Hong Kong listed companies, General shareholders will be authorized to shareholders, allowing the company to issue more than 20% of the share capital, but often abused by some companies, additional prices compared with the price of large discount, so that small shareholders do nothing.

And the supply of shares is an easy to be abused by the company's financial skills, if the company is not short of money, but also a large proportion and large discount to the share, indicating that the company has problems, only want to raise funds to do things unrelated to the company's business. For example, the notorious international (00616) in the market. HK), since 2008, a total of 10 stocks, 6 additional shares, 2 times a convertible record, due to a number of share records, there are still holding its 1 to 9 shares of small shareholders.

The partnership is even more frightening, some companies in the stock, found that the value of only HK $0.02, because the Hong Kong market, the share price of less than HK $0.01 will enter the stock market trading, the liquidity is very small, so the company through a joint venture to ensure that not falling into the broken stock market. "10-in-1", "20-in-1" of this stock do not look at!

3. Convertible Bonds (CB)

Convertible Bond is a bond that can be converted into a stock at certain times, but because of its high flexibility, it can either be a purely bond or a disguised issue, or it can be a backdoor listing through the CB to increase the shareholding of the target company, in short, no one is our mainland small white investors can see through, if it is backdoor listed companies, Usually hold a large number of exercise price than the current discount of the large CB, once exercised, the small white will die without burial ground.

Therefore, as mainland investors, we must pay attention to these small and medium-sized stocks, value investment for some "old thousand shares" is a deceptive pretence, in fact, each a-share has a wealth of experience of investors, it is easy to make this mistake. If found to be deceived, must be in time stop, otherwise the last small shareholder's money is deceived light also nowhere to redress.

What is "old thousand Shares"