On the evening of May 17, Zhongtai Chemical issued an announcement in the evening saying that it received the "Administrative Penalty Decision" issued by the Xinjiang Securities Regulatory Bureau on the same day, and there were false records in Zhongtai Chemical's 2022 annual report; Failure to timely disclose related party transactions occupied by non-operating funds of the controlling shareholder and its related parties, and material omissions in the 2021 and 2022 annual reports; There were false records and material omissions in the annual reports disclosed during the duration of the corporate bonds and debt financing instruments involved in the case, and the information disclosure in the relevant bond prospectuses was inaccurate.
The Xinjiang Securities Regulatory Bureau decided to order the company to make corrections, give a warning, and impose a fine of 5 million yuan; The parties concerned were given warnings and fines of varying amounts. The company's shares will be suspended for one day on May 20, and the resumption of trading will be implemented from the opening of the market on May 21 and other risk warnings will be implemented, and the stock abbreviation will be changed from "Zhongtai Chemical" to "ST Zhongtai", and the daily rise and fall of stock trading will be limited to 5%.
Despite the expectation of an investigation, the announcement by ST sparked market discussion throughout the weekend. Some investors believe that becoming an ST stock will inevitably trigger institutional smashing, while some investors believe that it is "full of profits".
Zhongtai Chemical currently has about 110,000 investors in A-shares, with an average shareholding of 113,000 yuan. Due to financial fraud, a lawyer has advised investors to claim compensation, and the investors who are currently eligible for Zhongtai Chemical stock claims are investors who bought the stock between April 10, 2021 and March 20, 2024, and sold or held the stock on or after March 21, 2024 and suffered losses.
The proportion of institutional holdings is admittedly not low. As of the end of last year, institutions held a total of 110 million shares, with a shareholding ratio of 42.88%, and in the first quarter of this year, the proportion of shares held fell to 37.16% due to the public offering only in the quarterly report announcing the details of the top ten heavy stocks.
Among the top 10 circulating shareholders, northbound funds represented by Hong Kong Securities Clearing Co., Ltd. ranked 4th, although northbound has continued to reduce its holdings since the 2023 interim report, but as of the first quarter of this year, the holding ratio is 1.08%.
In addition, among the institutional funds, CSI 500 ETF newly bought the top 10 outstanding shares, with a shareholding ratio of 0.91%, making it the 7th largest circulating shareholder; Chinese Life Traditional Insurance reduced its holdings to 0.73%, making it the ninth largest outstanding shareholder.
It is worth noting that, judging from the changes in the top ten outstanding shares, the public offering has significantly reduced its holdings and escaped a catastrophe. Among the top 10 outstanding shares disclosed in the 2023 annual report, there are also GF High-end Manufacturing managed by Zheng Chengran and Fuguo Xingyuan managed by Lin Qing Preferentially held for 12 months, but they have all reduced their holdings and withdrawn from the top ten circulating shareholders in the first quarter of this year.
From the perspective of public fund holdings, at the end of 2023, 214 public offerings in the whole market will hold Zhongtai Chemical, with a total shareholding ratio of 6.14%, and more holdings are GF High-end Manufacturing, Fuguo Xingyuan Preferred 12-month Holding, Southern CSI 500 ETF, GF Xinxiang, GF Growth Momentum Three-year Holding, etc., but Zhongtai Chemical has not entered the top ten heavy stocks of the above funds.
To this year's disclosure of the top ten heavy stocks holding Zhongtai Chemical only 2 funds, namely Fuguo Xingxiang return 6 months holding, Fuguo steady profits, this fund is partial debt type, the proportion of investment equity is not high, holding the net value of 1.01% and 1.02% respectively.
After the stock is ST, the fund company is likely to lower the valuation of the holding stock, such as ST Zhongnan, the fund company lowered the valuation by 0.1 yuan.
At the recent "5.15 National Investor Protection Publicity Day" event, Wu Qing, chairman of the China Securities Regulatory Commission, once again emphasized that to further promote the improvement of the quality of listed companies, from the "entrance" of listed companies to continuous supervision, and then to the "export", more stringent institutional arrangements are being established. The purpose is to resolutely keep counterfeiters out of the door and resolutely clear the "zombie enterprises" and black sheep from the market.
From the perspective of the industry, under the new "National Nine Articles" and other series of strict regulatory policies, a large number of non-standard enterprises have been sounded the alarm for delisting by ST and ST shares.
(Source: Announcements of Listed Companies, Finance Associated Press, etc.)