Today's market is seriously polarized, with as many as 79 stocks that rise by the limit, while the number of stocks that fall by the limit has also increased. Among them, Daniel stocks, which have risen nearly 10 times in the past three years, suddenly collapsed today, reaching a maximum of 10% at one point, but still closed down 8.77%.
As for the reasons for the decline, industry insiders analyze that there is no obvious change in the company's fundamentals, which may have something to do with the regulations on the proportion of shares held abroad.
According to the latest disclosure of the Shenzhen Stock Exchange, investors in QFII/RQFII/ Shenzhen Stock Exchange once again increased their holdings of about 5 million shares of China Test Test on June 24, bringing the total number of shares to 473 million shares, or 28.3%, according to the latest disclosure of the Shenzhen Stock Exchange. In accordance with the requirements of the CSRC, all foreign investors (QFII/RQFII/ Lukutong investors) cannot exceed 30 per cent of the total share capital of a single listed company. Once the total foreign shareholding reaches 28% of the total share capital, the purchase order will no longer be accepted and will have to wait until the proportion is less than 26% before buying again.
However, the agency also said that it had communicated with the company and the results were expected to be stable.
It is worth noting that the stock also experienced a "ban" on foreign buying in January this year. Industry insiders said that once the company's shares hit the foreign "no-buy line", the stock price should fall in the short term.
Data show that northbound funds have bought a lot of shares in China Test since 2017.
As of the end of 2017, Lu Shitong held 6.85 per cent of China Test's shares, according to the periodic report. By the end of 2018, the share of mainland shares tested by China Test had risen to 9.92 per cent and soared to 23.39 per cent by the end of 2019. Then, at the end of 2020 and the end of the first quarter of 2021, shareholdings decreased to 22.99% and 20.71%, respectively.
With the favor of foreign investors, the company's performance is also rising. According to the financial report, from 2017 to 2020, the net profit of China Test increased by 31.87%, 101.63%, 76.45% and 21.25% respectively compared with the same period last year. The net profit increased from 102 million yuan in 2016 to 578 million yuan in 2020, and the performance in the first quarter of this year increased by 660.16% compared with the same period last year.