Special treatment
The Shanghai and Shenzhen Stock Exchanges announced on April 22, 1998 that, in accordance with the stock listing rules implemented in 1998, they would deal with abnormal financial conditions or other conditions. The stock transactions of listed companies are subject to special treatment. Since the English word for "special treatment" is Special treatment (abbreviation is "ST"), these stocks are referred to as ST shares for short. Abnormalities in the above-mentioned financial conditions or other conditions mainly refer to two situations. First, the audited net profits of the listed company are negative for two consecutive fiscal years; second, the audited net assets per share of the listed company in the most recent fiscal year are low. to the par value of the stock. During the period when the stock trading of a listed company is subject to special treatment, its stock trading should follow the following rules: (1) The daily price increase or decrease of the stock quotation is limited to 5%; (2) The stock name is changed to the original stock name with "ST" added before it, for example "ST Liao Materials"; (3) The interim reports of listed companies must be audited.
*ST was specially dealt with after three consecutive years of losses and the risk of delisting
In addition, the explanation of ST can be found on Baidu---Shanghai and Shenzhen Securities Exchange It was announced that special treatment (English: special treatment, abbreviated as "ST") will be carried out on stock transactions of listed companies with financial conditions and other abnormal financial conditions. Abnormalities mainly refer to two situations: first, the listed company's audited net profits for both fiscal years are negative, and second, the listed company's audited net assets per share in the most recent fiscal year are lower than the face value of the stock. During the period when the stock trading of a listed company is subject to special treatment, its stock trading should follow the following rules: (1) The daily price increase or decrease of the stock quotation is limited to 5%; (2) The stock name is changed to the original stock name with "ST" before it, for example "ST Steel Pipe"; (3) Interim reports of listed companies must be audited. Note that:
1. Research on the fundamentals of target listed companies should be strengthened. The ST stock companies invested in should have "relatively good" fundamentals and should have small delisting risks. In order to reduce the difficulty of asset restructuring, the total share capital of ST stocks should not be too large and the financial status of the company should not be too bad. The local government has a strong desire for asset restructuring and has practical support policies.
2. From the technical trend point of view, since ST stocks implement a 5% price limit system, the rise and fall range of individual stocks is greatly compressed, which makes the rise and fall trend of ST stocks more obvious. Once an upward trend is formed, , it is very easy to form an explosive market with continuous daily limit, which is conducive to investors' timely discovery and capture of ST black horse stocks. Therefore, investors should pay close attention to ST stocks that have reached their daily limit for the first time after continuous sharp declines.
3. Investors need to be reminded that due to the poor fundamentals of individual stocks in the ST sector and the risk of delisting, and the low transparency of asset restructuring, they are only suitable for short-term participation and not suitable for long-term holdings. have. In short, participation in the ST sector should be limited to short-term participation.
As far as the recent trend is concerned, the strong ST stocks are basically in an oversold state and do not yet have a mid-term trend of improvement. The possibility of local hot spots forming again in the short term is not high, so there is no need to attach great importance to the short-term operations of ST stocks