Recently, China's stock market is setting off a round of vigorous rectification, and in the past there were too many phenomena of exploiting loopholes and even violating regulations.
At this time, a large investment bank hit the muzzle of the gun and paid a very heavy price, not only correcting the mistake but increasing the position by 6 billion, is the Chinese stock market finally saved?
Countless historical experiences have proved that the more you regulate and strictly manage, the more promising the market is, and the more you relax your tolerance, the more people will be disappointed, and the easier it is for the market to get out of control.
This is the fundamental reason why everyone applauds the recent series of actions by the China Securities Regulatory Commission, because more people see hope, including listed companies and investment institutions that always wanted to take advantage of loopholes in the past.
In addition, there are not many big investment banks in China, and in the past, perhaps in order to cultivate the growth of this industry, we may have imported more capital into China's economy and enterprises, and our tolerance was too high.
Starting from the release of the nine articles of the new country, the latest round of rectification is obviously much stricter, and the chairman of the China Securities Regulatory Commission has made a loud speech, which must be strictly supervised!
Recently, a very well-known investment institution in China hit the muzzle of the gun, not only admitted the penalty, but also decided to increase its position by 6 billion.
This is a very typical event, and we are here today to talk about the trends of China's stock market and the hope for the future.
On April 19, LONGi Green Energy announced that the company's shareholder HHLR Management Co., Ltd. increased its holdings of the company's shares, completed the first repurchase on the same day, increased its shareholding to 5%, and promised to repurchase all the shares that were subject to the CSRC's filing within one month.
At the end of 2020, Li Chunan, a shareholder of LONGi Green Energy, transferred about 6% of his shares to HHLR for a transaction consideration of 15.841 billion yuan.
Since 2021, HHLR has been included in the list of top 10 shareholders. LONGi Green Energy's first quarter report of that year shows that HHLR holds 5.85% of the shares.
However, LONGi Green Energy's third quarter report for 2023 shows that as of the end of the third quarter, HHLR's shareholding ratio was 4.98%.
Prior to this, HHLR had loaned shares in the form of refinancing, which had been fully repaid at maturity.
This also means that HHLR quietly completed a partial reduction of its shareholding when its shareholding fell below 5% during the refinancing period. Because the shareholding ratio fell below 5% at that time, LONGi Green Energy did not make an announcement in time.
HHLR was investigated by the China Securities Regulatory Commission in November 2023 on suspicion of violating restrictive regulations to transfer LONGi Green Energy shares.
This time, HHLR not only corrected its mistakes, but also took the initiative to increase its position by 6 billion. It is understood that HHLR has completed a new fund with a scale of about 6 billion yuan, and plans to increase its position in A-shares.
Increasing the position by 6 billion is an important attitude to avoid being heavily fined after the investigation of the case is completed, which is to lose the wife and the soldiers.
Behind this incident is the well-known investment institution Hillhouse Capital, which is the company that invested more than 40 billion yuan in Gree Electric Appliances, because of an investment fund under HHLR Hillhouse Capital.
Hillhouse Capital is definitely a big tiger in China's investment community, and it has been almost 20 years since its establishment in 2005, with a management scale of more than 65 billion US dollars, close to 500 billion yuan.
Hillhouse Capital has invested in a long list of well-known Chinese companies such as JD.com, Tencent, ByteDance, Meituan, CATL, Gree Electric, Belle International, and Blue Moon.
In the past, Hillhouse Capital, a large investment institution, was very respected. However, this time they got into a big deal.
Hillhouse Capital took advantage of the fact that the CSRC's investigation was not closed, and quickly corrected its mistakes, obviously seeing that the wind was not in the right direction recently, so it learned to behave. Would they have done it in the past? If it hadn't been the wind around lately, would they have done it?
It's not small, and it's very blatant, which makes people feel incredible, even a little angry.
Hillhouse Capital, such a well-known investment institution, would make such a low-level mistake.
Or that this is not as simple as making a mistake at all, but that they have blatantly done this kind of thing, which shows that we have lax supervision in the past, and the chaos in the stock market stems from lax standards.
However, this time is different, with the introduction of a series of policies, the regulator will further strengthen the crackdown on illegal reductions, bypass reductions and other behaviors. This is the black storm of China's stock market!
HHLR's repurchase of all shares also reflects the regulator's zero-tolerance attitude towards all violations.
Judging from this incident, it is imperative to strictly supervise and strictly supervise how serious the violations in China's stock market have been in the past.
In the past, we did not have no rules, but the implementation was not strict, and we were too tolerant of Hillhouse Capital and large investment banks, which made the entire stock market chaotic, especially the interests of small and medium-sized investors.
Therefore, this is where the hope that this reform brings to China's stock market lies in this.