Trump suddenly "goes out" to expand his entity list, and a group of artificial intelligence leaders were collectively "banned", but it also made a company with a market value of less than 4 billion unexpectedly popular.
On May 25, the stock price of the listed company in the security industry, Oriental Netli , hit the daily limit at the opening, and the orders of more than one million hands quickly closed at the daily limit. The night before, because it was included in the "entity list" by the US Department of Commerce, the announcement of Oriental Network disclosed that it "does not have a substantial impact on daily operations." As of around 11:15, more than 680,000 buy orders were still closed on the daily limit.
It is worth noting that Oriental Net Li was investigated by the China Securities Regulatory Commission for suspected disclosure violations. At the same time, the company suffered huge losses last year, shareholders’ illegal guarantees, and high proportion pledges frequently.
However, this technology company with many problems has soared its stock price due to Trump's name. Some netizens joked: The US Department of Commerce selected stocks and the Trump concept emerged.
However, on that day, the stock prices of several other companies included in the "entity list" were very different. On May 25, Fenghuo Communication fell by more than 9% during the session. After the 360-60 opening low, the stock price rose higher, and the intraday rose by more than 4%, and the increase narrowed.
Entity List "Expand"
This security concept stock unexpectedly hit the daily limit
Last week, US technology sanctions escalated again, and Trump included 33 Chinese companies on the "entity list", which caused a thousand waves. However, just as a group of artificial intelligence leaders were collectively "banned", A-share listed company Oriental Netli turned around against the trend!
00. The stock price of Oriental Netli hit the daily limit, and the stock price was firmly sealed on the daily limit. Within half an hour of opening, more than one million buy orders were posted. Just the previous trading day (last Friday), the stock price of Oriental Netli also closed at the daily limit.
for two consecutive days, Oriental Net Li was sought after by market funds because it involved the concept of technology security. The stock price closed two daily limits in a row, and its market value also soared from the original 3.2 billion to 3.9 billion.
news, on May 22 local time, the US Department of Commerce announced that it would include a total of 33 Chinese companies and institutions on the "entity list". In addition to leading technology companies such as Qihoo 360 and Yuncong Technology, Oriental Network Li is also on the list.
According to a statement by the U.S. Department of Commerce, a total of 9 companies and institutions have been included in the "entity list" for reasons such as "helping monitor Uyghurs", namely the Institute of Forensic Science of the Ministry of Public Security of China, Aksu Huafu Textile Co., Ltd., Yuncong Technology Co., Ltd., Fenghuo Technology Group and its subsidiary Nanjing Fenghuo Star Communication Development Co., Ltd., Oriental Net Li Technology Co., Ltd. and its subsidiary Shenzhen Vision, Shenzhen Yuntian Lifei Technology Co., Ltd. and Shanghai Yinchen Intelligent Identification Technology Co., Ltd.
public information shows that Oriental Network Li is an enterprise focusing on security video surveillance and is a provider of domestic video management platforms and security artificial intelligence platforms. The company has many core technologies for smart IoT solutions with video data and portrait recognition as the core, and has independent research and development intellectual property rights.
After being included in the entity list, Oriental Network Li also responded quickly. On the evening of May 24, an announcement was disclosed by Oriental Net Li , which showed that the company noticed that the official website of the US Department of Commerce included Oriental Net Li and its wholly-owned subsidiary Shenzhen Shenzhen Vision Technology Co., Ltd. and other Chinese technology companies, research institutions and individuals on the "entity list".
Oriental Network Li said that at present, the company's business covers all provinces, cities, autonomous regions and some regions overseas in Southeast Asia. The company's overseas market revenue mainly comes from Southeast Asia. It currently has no business in the United States and has no plans to conduct business in the United States for the foreseeable future.
Oriental Network Li clearly stated that this time being included in the "entity list" will not have a substantial impact on the company's daily operations. At the same time, the company has also made relevant preparations in advance for possible market risks, and continues to promote the replacement of domestic products for hardware facilities procurement, and continues to provide customers with high-quality products and services. At present, the company's production and operation are normal.
problematic company was named by Trump
Netizen: The US Department of Commerce helps select stocks
It is worth noting that this listed company with the concept of security as its core has many risks. The unexpected stock price hit the daily limit this time, which also surprised many investors.
On the evening of April 15, Oriental Net Li issued an announcement that the company and the company's former controlling shareholder and then director Liu Guang received a notice of investigation from the China Securities Regulatory Commission on April 15, 2020, because the company was suspected of illegal and irregular information disclosure. On April 17, Oriental Network Li announced that the company's director Liu Guang resigned for personal reasons.
Analysts believe that this may be related to Liu Guang’s previous illegal guarantee. On November 25, 2019, the company received the China Securities Regulatory Commission’s decision on administrative supervision measures.
According to the above-mentioned fine, it is mainly Oriental Network Li self-inspection and announced that it has jointly guaranteed the amount of RMB 770 million for other debtors, and jointly provided the amount of RMB 300 million for the factoring financing of other debtors, and the amount of RMB 380 million for the repurchase obligations jointly assumed, with a total amount of RMB 145 million.
It is understood that when the above guarantee matters occurred, Liu Guang failed to comply with the review or disclosure procedures stipulated in laws and regulations and the company's articles of association, which was a violation of regulations. At the same time, the company announced that it was found that there was a capital occupation, involving an amount of RMB 250.77 million.
In addition to the problems of internal control disorder and shareholders’ illegal guarantees, there are also many problems in the operating conditions of Oriental Network Li . According to financial report data, in 2019, the net profit attributable to the parent company's shareholders of Oriental Net Li lost 3.1 billion yuan, a year-on-year decline of 1109%. In the first quarter of 2020, Oriental Netli continued to lose more than 130 million yuan, a year-on-year decline of 254%.
In addition, the proportion of shareholder pledges is high and the company's debt pressure is huge. Among them, the pledge ratio of Liu Guang's equity is as high as 99.19%. In the third quarter report of 2019, the debt-to-asset ratio of Oriental Netli reached 46.53%, and the interest-bearing debt ratio was as high as 62.00%.
However, it is such a company that has shown signs of stock price flying, which also makes many netizens joke: "A company with a market value of less than 4 billion actually threatens the national security of the United States", "The US Department of Commerce helps select stocks, which is considered a Trump concept."
Leading stocks plummeted and approached the limit down
Communications sector was collectively smashed by funds
However, it also suffered a blow to the "entity list", but the stock prices of other companies were not so optimistic.
On the morning of May 25, the leading stock in the communications sector, , Fenghuo Communications , opened low at the opening, and the stock price fell rapidly, and once plummeted by more than 9% during the session, approaching the limit, and its market value quickly evaporated by more than 3 billion.
According to the expanded "entity list", Wuhan-based Fenghuo Technology Group and its subsidiary Nanjing Fenghuo Star Communications Development Co., Ltd. were listed in it by the U.S. Department of Commerce.
Public information shows that FiberHouse Technology is the main part of the establishment of the youngest central enterprise China Information Technology in 2018. At present, Fenghuo Technology has four listed companies: Fenghuo Communication , Guangxun Technology, Science and Technology Optoelectronics, and Changjiang Communications, which are pillar enterprises generated by the local Optoelectronics.
htmlOn the morning of May 25, several other listed companies under Fenghuo Technology also suffered a collective decline. Among them, Guangxun Technology once fell by more than 5% during the session, Changjiang Communications fell by more than 3% during the session, and the decline narrowed slightly after the Sci-Tech Optoelectronics fell by about 1%.At the same time, the communications sector was also collectively smashed by market funds on the same day. On the morning of that day, the communication equipment index fell by more than 2%, becoming the leading sector in the two markets. Individual stocks including Shida Group, Fiberhome Communications , Gongjin Co., Ltd., and Kaile Technology fell by more than 5%.
From the market, related concepts such as light index, network visualization, satellite navigation, etc. have all fallen.
360's stock price opened low and closed high
Zhou Hongyi: "I didn't expect it to be included in"
In addition to the above-mentioned technology companies related to artificial intelligence, fiber optic communications, etc., the fact that the well-known Internet company 360 was included in the "entity list" has also attracted market attention.
However, from the perspective of market performance, the stock price of 360 is relatively strong. At the opening day of May 25, the stock price of 360 opened low at one point, but then the stock price opened low and closed high, and once rose by more than 4% during the session.
On the evening of May 23, 360 Group responded to the matter, saying, "It firmly opposes the irresponsible accusation of the US Department of Commerce and opposes the US Department of Commerce's politicization of commercial activities and technological research and development." 360 Group clearly stated that being included in the entity list will cause certain troubles to its business development, but "it will not have a significant impact on 360's daily operations, nor will it interrupt 360's ability to continue to provide customers with security."
It is reported that when a media asked Zhou Hongyi, chairman of 360 Group, whether there was any prevention, "I didn't expect it." He replied in this way. It is understood that Zhou Hongyi has been busy attending the National "Two Sessions" as a member of the National Committee of the Chinese People's Political Consultative Conference recently, and has brought 4 suggestions to focus on the network security of "new infrastructure".
It is worth noting that in addition to responding to being listed as "entity list", 360 official also disclosed its company's main business and the situation of cyber attacks on Chinese companies by the United States.
360 official said, "In recent years, 360 has built a 'cybersecurity brain' based on security big data, which can effectively detect and discover advanced cyber attacks on my country by national hacker organizations, large cyber criminal gangs, etc. and achieve remarkable results, capturing more than 40 attacks on my country's network infrastructure by other countries."
360 said that through the cybersecurity brain, it has helped Apple, Google, and Microsoft discover thousands of security vulnerabilities, indirectly protect global netizens, and has won the praise of the above-mentioned companies; it has also helped US law enforcement agencies to crack global cybercrime attack cases many times, which is highly recognized by international parties.
However, 360 also revealed, "Recently disclosed the evidence of a US intelligence agency's decade-long cyber attack on my country." Regarding the disclosure of attack incidents, analyzing and tracing information of hacker organizations after discovering cyber attacks, 360 believes that this is not only the strength of a cybersecurity company, but also the industry practice.
"Global colleagues, including US cybersecurity companies, have also done this. Disclosure of attacks is the need for cybersecurity companies to continuously improve their defensive technology to combat cybercrime, and should not be the fuse of sanctions." 360 said that the sanctions of the US government, in an attempt to weaken China's cybersecurity defense capabilities, will only benefit various attack organizations and attack activities, and will have a negative impact on global cybersecurity.
The United States frequently cracks down on Chinese companies
Technology stocks may be under pressure again in the short term
0 From restricting Huawei chips to including 33 Chinese companies on the "entity list", there is no doubt that the means of "technology sanctions" on China are gradually upgrading.
restrictive measures have been continuously upgraded, causing short-term pressure on the domestic chip sector and technology stock-related sectors. According to statistics from Databao, last week, the net outflow of 447 main funds exceeded 100 million yuan, accounting for 11.7% of the total A-shares, more than ten times higher than the number of stocks with net inflows. Among the stocks with the largest net outflow, most of them are technology-based leading stocks, such as chip stocks Wingtech Technology , Huatian Technology, Zhaoyi Innovation, Changdian Technology, Inspur, etc. Wingtech Technology net outflow of 2.605 billion yuan ranked first, with the stock falling 14.79% this week.
However, in the eyes of industry insiders, the national fund forces have begun to increase support actions, and the trend of domestic substitution in China is unstoppable. In the long run, this will become an opportunity for Chinese companies. For the chip sector, US sanctions may cause short-term impact, but in the medium and long term, as China focuses on high-tech industries such as chips, the potential for domestic substitution in the future is still very great.
Everbright Securities believes that although the US sanctions on Huawei are slightly beyond market expectations, from the perspective of the big game, this is not surprising, and this is an inevitable thing within expectations. Since 2018, China and the United States have entered a stage of great game, so even without the impact of the new crown pneumonia, it is inevitable that the escalation of the great game between China and the United States may increase the risk of international conflicts in the context of this year's US election.In the short term, the escalation of trade frictions into technological blockades will affect market trading sentiment and risk preferences, but in the long term, the market rise and fall more reflects the ability of enterprises to create monetized profits.
Everbright Securities said that investors do not need to worry too much about the future market. The greater the pressure of external blockade, the smoother the logic of internal loose policy hedging, and the greater the domestic investment in technology will be, which will help enhance the ability of domestic technology companies to create monetary profits.
BOC Securities believes that the U.S. upgraded chip restrictions on Huawei will accelerate the localization of semiconductor software, equipment and materials. Although the Huawei incident escalation has put great pressure on the domestic semiconductor industry chain in the short term, my country's semiconductor industry chain has formed a virtuous ecosystem, including packaging, foundry technology, equipment, materials, etc., and my country's electronic communication consumer market is huge. The incident itself will inversely promote the process verification and application of basic technologies such as semiconductor software, equipment, and materials in local wafer production lines or design companies. Therefore, we are optimistic about semiconductor equipment and materials, and focus on recommending equipment, materials and software that are still boring.
Hengtai Securities believes that the trends of high-tech stocks are differentiated, and industry ETFs have also encountered large redemptions. In addition to some leading stocks in the high-tech industry, the strong are always strong, most pseudo-tech stocks are facing the risk of valuation return.
This article is from China Fund News
