1. Why do retail investors always lose? Maybe your ability to "cheat" is not enough!
When I reflect, most of them think that I am not capable enough, I am not proficient in fundamental analysis and I am not good at K-line, have you ever thought that your ability to "cheat" is not enough?
Retail investors can only make money by going long, you think that you and the major shareholder/actual controller have the same position, and both hope that the stock will rise, but you never imagined that the major shareholder/actual controller will join forces with securities firms and funds to jointly short their own stocks, and take illegal means to obtain huge economic benefits from it, and it is you retail investors who cut the leeks.
Recently, China Nuclear Titanium Dioxide issued an announcement that Wang Zelong, a major shareholder/actual controller, was punished by the Securities Regulatory Commission, Wang Zelong and CITIC Securities jointly shorted through private placement and then backhand securities lending, circumventing the provisions of restricted stock transfers, and earning stock price differences, with major shareholder Wang Zelong making a profit of more than 60 million and CITIC Securities securities lending business income of 1.91 million.
The way of heaven is to make up for the deficiency with more losses, and the way of people is not enough to make more than enough losses! The major shareholders you think can only make more money like yourself, and you need to study the business, break through the technical bottleneck, become bigger and stronger, and finally reflect it on the stock price; you think that the brokerage is the value discoverer of the capital market, and can always guide the flow of resources to the value depression, and you never thought that the brokerage would conspire with the major shareholders to short their own stocks and cut the leeks of retail investors.
What we hope for is common prosperity, so that some people get rich first, and the first rich lead the latter to get rich, but some people's means to get rich are not bright, and even after getting rich, they have to cut meat from the poor to make themselves eat fatter, and the ridiculous thing is that such people have even been awarded the title of "outstanding builders of China's socialist cause".
Before the national nine articles came out, the entire A-share market experienced a downturn comparable to 2018, investors generally responded that the market was too chaotic, there were too many short-selling tools, and shareholders were restricted from shorting their own stocks through refinancing to break through the restrictions. Fund companies and so on form a hidden industrial chain, lying on the weak A-shares, constantly sucking blood, A-shares in the belly are shareholders and the people, behind them are thousands of ordinary families, wealth continues to flow from ordinary families to those so-called wealth freedom class.
The nine articles of the country are not born out of thin air, but the original model has been unsustainable, the appearance is too ugly, it has reached the point of common anger of people and gods, and it has reached the point where it has to be changed, so compared with the first two national nine articles, there is less "development" and "financing", more "strict supervision" and "strong supervision", supervision is the head, and it takes 5-10 time to create a capital market with a perfect legal system, plugging various loopholes, and truly realizing the high-quality development of the capital market with effective allocation of resources.
2. How did the post-95 major shareholders short their own stocks and cut leeks?
Things have to start from 2019, Wang Zelong was born in 1996, and when he was 25 years old, that is, at the end of 2019, he signed a share transfer agreement with Li Jianfeng, the former major shareholder of China Nuclear Titanium Dioxide, and transferred Li Jianfeng to hold 27.05% of the shares of China Nuclear Titanium Dioxide at a price of 1.63 billion yuan, becoming the major shareholder and actual controller of China Nuclear Titanium Dioxide, Wang Zelong also successfully controlled a listed company when he was 25 years old and became one of the youngest chairmen of A-shares.
In February 2020, the board of directors passed the plan of non-public private placement, issuing 462 million shares at a price of 3.46 yuan per share, raising assets of 1.6 billion yuan, and the private placement plan was approved by the China Securities Regulatory Commission in August of that year, and was successfully issued in September of that year.
In May 2021, the board of directors approved a huge private placement plan with a fixed increase price of 5.92 yuan per share, the number of shares issued is as high as 893 million, and the amount of funds raised is as high as 5.3 billion. Two years after Wang Zelong became the owner of CNNC Titanium Dioxide, he raised 6.9 billion yuan, accounting for 78% of the total financing since CNNC Titanium Dioxide was listed in 2007.
In July 2022, the private placement plan was approved by the Issuance Examination Committee, and CITIC Securities immediately recommended the fixed short and short plan to Wang Zelong, the actual controller of China Nuclear Titanium Dioxide, The biggest advantage of the program is that it can realize the fixed increase and short arbitrage, settle the income in advance, and do not need to wait for the 6-month lock-in period, usually 1 month to withdraw funds and income.
The core of this arbitrage model is "fixed increase + securities lending", generally speaking, the fixed increase price will be 80% of the market price, and there is a 20% price difference between the market price, but it needs to wait until 6 months later to lift the ban on sale and realization, and securities lending provides a way to realize in advance.
Specifically, we decide to participate in the private placement of a stock, and at the same time agree with the brokerage to borrow the source of securities, and sell the securities after winning the bid, we assume that the market price is 100 yuan, the fixed increase price is 80 yuan, and the price of borrowing and selling is 100 yuan, and wait until the expiration of the 6-month fixed increase lock-up period, and then return the fixed increase of the stock to the brokerage, because the price you sold at that time was 100 yuan, and the price of the fixed increase was only 80 yuan, you earned a difference of 20 yuan, with good cooperation, it is almost risk-free arbitrage.
The first step is to find someone to lend 88 million shares to CITIC Securities through refinancing; the second step is to find someone to lend securities lending, at the beginning of which is to find an investment company, the investment company has insufficient subscription funds, in order to fill the quota of securities lending, Wang Zelong let his friend Hong Haowei participate in securities lending, from February 13 to February 21, 2023, four private economic accounts sold 88 million shares" The average selling price of "China Nuclear Titanium Dioxide" stock was 7.63 yuan per share, and the transaction amount was 671 million yuan, which was nearly 29% higher than the fixed increase price of 5.92 yuan per share.
As early as November 2022, CITIC Securities had preliminary communication with Haitong Securities to discuss the income swap business linked to the non-public issuance of shares by CNNC Titanium Dioxide. And on February 10, 2023, in accordance with the instructions of CITIC CSI, it participated in the subscription of the private placement of China Nuclear Titanium Dioxide.
After this set of operations, Wang Zelong made a profit of more than 60 million yuan, his friend Hong Haowei made a profit of 14.19 million yuan, CITIC Securities made a profit of 1.91 million yuan, and Haitong Securities made a profit of 789,000 yuan. These parties made a total profit of 77.53 million yuan, and every cent of the profit here is a plunder of other investors, and there were 120,000 retail investors at that time, with an average contribution of 646 yuan per person.
How should he be punished? He was ordered to make corrections, given a warning, confiscated his illegal gains, and imposed a fine of 234.53 million yuan, of which Wang Zelong confiscated 130 million yuan (60 million yuan was confiscated of illegal gains).
What do you think of the severity of this punishment?