It is incomprehensible! Three delisting warnings were issued in a row, and the stock was still recommended to be bought by the brokerage, and then it exploded and is now lying on the floor
Finance Associated Press, February 9 (Reporter Gao Yanyun) After the listed company issued a delisting risk warning three times, it was still recommended to buy by the institution, and this incomprehensible behavior also attracted regulatory fines.
The Shenzhen Stock Exchange recently disclosed a fine showing that Huaan Securities was taken a written warning of self-regulatory measures. On January 31, February 25, and March 25, 2023, *ST Zuojiang, a company listed on the Shenzhen Stock Exchange, issued three consecutive announcements that the company's stock trading may be subject to delisting risk warnings. However, on April 25, 2023, Huaan Securities released an in-depth research report entitled "The Bright Pearl in the Field of Computing Power, DPU Increases Momentum" and recommended buying Zuojiang. After investigation, the analysis conclusions of the relevant research reports released by Huaan Securities are not sufficient, the conclusions are not prudent, the investment risks are not fully revealed, and the company is not strict in the quality review of the research reports.
The Shenzhen Stock Exchange requires that Huaan Securities should attach great importance to this, take effective measures to rectify the problem of violations, further strengthen the company's quality review and compliance review of the research report, ensure that the source of research report information is legal and compliant, and the analysis conclusion has a reasonable basis, fully reveal the investment risk, and avoid misleading the market.
It is still recommended to buy after three risk warnings
The above-mentioned research report of Huaan Securities has formed an indescribable "coincidence" relationship with the risk warning of *ST Zuojiang's three delistings and the subsequent surge in stock prices.
On January 31, February 25 and March 25 last year, due to "the audited net profit is expected to be negative in 2022 and the operating income is less than 100 million yuan", *ST Zuojiang issued three consecutive announcements that the company's stock trading may be subject to delisting risk warning.
A month later, on April 25 of the same year, Huaan Securities released an in-depth research report "Bright Pearl in the Field of Computing Power, DPU Rises on Momentum", predicting that Zuojiang Technology will achieve revenue of 60 million yuan, 930 million yuan, and 1.34 billion yuan respectively in the three years from 2022 to 2024, a year-on-year increase of -49%, 1452%, and 44%, and the net profit attributable to the parent company will be -140 million yuan, 351 million yuan, and 625 million yuan, giving a "buy" rating.
In the following three months, the stock abbreviation was changed from "Zuojiang Technology" to "*ST Zuojiang", and the company's stock price rose from 218.98 yuan per share and a total market value of 21.635 billion yuan when the research report was released to a record high price of 299.8 yuan and a total market value of 30.58 billion yuan on July 14 of that year, an increase of 36.91%.
*ST Zuojiang was characterized as involved in major financial fraud
The above-mentioned Huaan Securities research report subject *ST Zuojiang has been highly concerned by the market, first, the company was the "most expensive ST stock in history", and second, the company was characterized as involved in major financial fraud.
*ST Zuojiang created the myth of "the most expensive ST stock in history", and also experienced a rollercoaster of stock price fluctuations. The company's share price reached the highest price since its listing on July 14 last year, at 299.8 yuan, and then went all the way down, after being speculated in mid-to-late January this year, it has recently fallen into a continuous 5-day limit, and on February 7 and 8, it was speculated, first on February 7, a huge transaction of 254 million yuan rose 20.02%, and on February 8, 286 million yuan fell 15.34%, the company's lowest share price was 13.9 yuan, and the company's latest stock price was 17.66 yuan, almost one-seventeenth of the high.
The lowest price was 20.6 yuan on January 15 this year, and it recently ushered in a burst of speculation, with a daily increase of 20% on January 15, 16, 17, 22 and 23 on the same day.
On January 30, the China Securities Regulatory Commission (CSRC) reported the progress of the phased investigation of the *ST Zuojiang financial fraud case, and filed a case for investigation on *ST Zuojiang on November 24, and it has been preliminarily ascertained that the financial information disclosed by *ST Zuojiang in 2023 is seriously untrue and suspected of major financial fraud. The case is currently under investigation, and the CSRC will ascertain the facts of the violation as soon as possible and deal with it seriously in accordance with the law.
The China Securities Regulatory Commission said that it will always take the protection of the legitimate rights and interests of investors, especially small and medium-sized investors, as the starting point and end point of all work. Financial fraud by listed companies seriously misleads small and medium-sized investors in their trading decisions, and must be severely cracked down. The China Securities Regulatory Commission will continue to maintain a high-pressure posture of "zero tolerance" law enforcement, strictly and quickly investigate and deal with all kinds of counterfeiting, and strengthen the three-dimensional accountability of administrative, civil and criminal cases. Strictly implement the delisting system, so that those who make counterfeits "should retreat as much as possible", and let those who make counterfeits and disrupt the market pay a heavy price.
During the year, two securities firms were fined for their research business
Since the beginning of this year, two brokerages, including Huaan Securities, have been fined for research business violations.
On January 5 this year, the Hunan Securities Regulatory Bureau disclosed two fines, Founder Securities was ordered to take corrective measures, and the administrative person in charge of the company's securities research report business department was taken to issue a warning letter.
After investigation, in the process of publishing securities research reports, Founder Securities leaked the content and opinions of securities research reports before publishing them, and individual employees publicly released research opinions without reviewing without obtaining securities analyst qualifications, causing adverse effects. Liu Zhangming, as the administrative person in charge of the company's securities research report business department, has leadership responsibility for the above situation. At the same time, Liu Zhangming also personally recommended shares to customers in violation of regulations.
In addition, Huaan Securities also had company analysts fined for research report violations last year.
On May 18, 2023, the Anhui Securities Regulatory Bureau disclosed a penalty announcement showing that Chen was taken administrative supervision measures of issuing a warning letter and recorded in the integrity file of the securities and futures market.
After investigation, it was found that the research report ""Specialized, Specialized and New" Intelligent Warehousing and Logistics Suppliers, Self-developed and Self-produced to Build Core Competitiveness" published by Chen had insufficient basis for the selection of comparable companies, insufficient argumentation of profit forecasts, inconsistent text and charts, and unclear data sources. Chen, as the signed analyst of the above-mentioned research report, is directly responsible for the above-mentioned violations.
According to the basic information publicity of practitioners on the official website of the China Securities Association, there is only one person whose name is "Chen" and whose practice position is an analyst, namely Chen, an analyst at Huaan Securities, who has been practicing as an analyst in Huaan Securities since May 18, 2020.
In May 2023, the China Securities Regulatory Commission (CSRC) notified all securities firms of the on-site inspection of the "double random" research report in 2022, covering a total of 300 research reports from 45 companies. The China Securities Regulatory Commission (CSRC) has notified of the three major problems that still exist in the production of research reports, one is that the internal control system of some companies has not been updated and adjusted in a timely manner in accordance with the requirements of laws and regulations, the second is that the implementation of the internal control system of some companies is not effective enough, and the third is the lack of prudence in the production of specific research reports, and individual employees have privately published securities analysis opinions
The China Securities Regulatory Commission (CSRC) reiterates the requirements of four laws and regulations: first, to strengthen the management of information sources and traces of research reports, and to lay a solid foundation for high-quality research reports; second, to strengthen the internal control of the whole process of research report production, review and release, and strive to improve the level of professional quality and compliance, and to consolidate the responsibility requirements of the production process to ensure that the research report is professional and prudent; third, to standardize the control of public speech and customer service activities, and strengthen the management of public opinion risk; and fourth, to improve the personnel performance appraisal and internal accountability system, so as to promote the steady and far-reaching development of the industry.
(Finance Associated Press reporter Gao Yanyun)