China Mobile, the break is imminent
China Mobile, since landing on A-shares on January 5, 2022, has been stable above the issue price of 57.58 yuan under the protection of the "green shoe" mechanism.
Since the "green shoe" mechanism protection is valid for 30 days, this means that when the A-shares open after the holiday on February 7, China Mobile will lose the "green shoe" protection.
Judging from the trading session of China Mobile on the last day before the holiday, there are still 350,000 lots to support the issue price, with an amount of 2 billion yuan, and it can be speculated that most of them belong to the "green shoe" buying.
On January 24, China Mobile announced that it intends to increase its holdings of A-share shares of not less than 3 billion yuan and not more than 5 billion yuan.
As of January 28, China Mobile has implemented an increase of 1.509 billion yuan, and the amount of the increase has exceeded 50% of the lower limit of the planned increase.
Judging from the trend of a total of 18 trading days after the listing of China Mobile, whether it is a "green shoe" purchase or a large increase in holdings, it cannot pull the stock price up.
On January 28, China Mobile closed at 57.58 yuan, which is its issue price.
Referring to the trend of China Telecom, the listing on August 24, 2021 closed up 34.88%. By September 24, it was officially broken, and the closing price was 4.44 yuan. The period is exactly one month, the day of the break, which is also the first trading day after the end of the "green shoe" protection.
Although China Mobile still has a minimum of 1.5 billion yuan and a maximum of 3.5 billion yuan of increase plans to be implemented. However, compared with the circulating market value of 27 billion yuan and the single-day turnover of more than 1 billion yuan, the remaining amount of the increase plan obviously cannot be supported for too long. Moreover, China Mobile can completely increase its holdings after a certain degree of breakage.
Therefore, the trend of China Mobile's "loom" may be coming to an end.
