Recently, civil strife in neighboring Myanmar has often become the focus of attention around the world. As the saying goes, the fire at the city gate will affect the fish. For any company with an investment layout in the country, this will be an extraordinary period that makes people worried. For example, on the afternoon of March 14, several Chinese-funded companies located in Yangon were subjected to sudden arson and smashing attacks.
just surprised others that almost all the victims of have come forward to publicly expressing that they are not affected by any influence. At most, it is to use a sentence that is unclear to make excuses. The strangely rising stock price index seems to be enough to endorse the above remarks.
It seems that these companies and their investors are in a parallel space and space, so they can encounter chaos and remain unmoved. But the vague tendency to escape from reality and towards virtuality behind it will still make all wise men feel cold on their spine.
The fundamentals that are not moved by chaos
On the afternoon of March 14, 2021, several industrial areas near Yangon, the capital of Myanmar were arson and smashed. The more than ten companies involved in have Chinese-funded backgrounds or China-Myanmar joint ventures and joint ventures. The industries are mostly distributed in the production of garment processing plants, garment auxiliary material plants and supporting equipment. According to the current disclosure, most of them come from listed companies such as Northern International, Creative Information and Jiaxin Silk.
People with a little common sense may have a premonition that the stock price of the company involved will decline significantly when they see this news. After all, fundamentals have always been our macro reference for investing in the stock market. Industry tycoons such as , Buffett, and have repeatedly emphasized investors' clear understanding of fundamentals. Otherwise, if you only stick to a few long lines on the computer screen, it is easy to fall into the dilemma of putting the cart before the horse at the beginning. Even if the stock price itself has non-static attributes of continuous fluctuation, it is difficult to make a decisive countermeasure in the contemporary context.
However, just by simply browsing the relevant data online, you will find that the actual situation is exactly the opposite. The stock prices of the above three listed companies in are not only not green, but even have a prosperous scene to varying degrees. It is obvious that at this moment, fundamental principles have unexpected reactions that are unreasonable due to certain reasons that we cannot directly understand.
Some people may say that and other listed companies set up factories in Myanmar may also limit their business scope to the local area. That is, using the acquisition or self-developed brand of origin to successfully seize the market of other countries, but there is no plan or behavior to counter-sell the country.
However, the circulation channels of physical products may be blocked by geographical barriers, but the rapid transfer of the capital market is often not subject to spatial restrictions. The reason why major companies want to go public is to hope to gather more working capital in the short term for business expansion in all directions. If a certain part is damaged by majeure external forces, it is a blow to the purpose of profit and a regrettable loss for all investors. What is more important is that it affects the market's confidence in its ability to provide returns.
So, is it because Myanmar's own market is too narrow and cannot attract enough investment from China? The answer is also no! Because according to data from the Myanmar Investment Commission, Myanmar has attracted a total of US$77.74 billion from 1988 to 2018. Of these, US$20.244 billion came from China, accounting for 26.04% of Myanmar's total foreign investment, ranking first! In the past two years, China has also invested in and built factories in Myanmar, with a cumulative investment of more than 170 billion yuan, ranking second and second only to Singapore .
Given that the local situation in Myanmar has not improved fundamentally, enterprises that have established production bases in the local area will inevitably continue to be affected by chaos. Even if the factory itself is no longer attacked, the industrial workers, logistics and transportation and upstream and downstream supply chains that are closely related cannot be immune to it. is the one you are choosing to buy. Will you consider this type of stock full of uncertainty?
What's more, after this vicious incident, many A-share listed companies have announced that they have Myanmar investment business, involving a total amount of more than US$1 billion. If none of these funds can cause any turmoil in the market, I am afraid that the answers to the questions can only be explored from other aspects.
Deviation from reality to virtual and financial fraud
Here we might as well take a look at another industry information involving the stock market. March 15, 2021, the second day of this year's Consumer Rights Day and the attack on Myanmar Industrial Park. ST Kangde issued an announcement stating that it had received "Previous Notice" , which was terminated from , issued by on the Shenzhen Stock Exchange. This has caused the company's shares to be delisted by the Shenzhen Stock Exchange.
The main reasons include the following:
1 The company's net profit in 2020, net profit after deducting non-operating gains and losses, and net assets at the end of the period are all negative.
2 The audit report with reservations issued by the company's financial accounting report and the annual report disclosed in 2015-18 have false records.
implied that it was a major violation of the law because of the fraud of the financial report, and it will soon be forced to delist by the relevant departments. After all, the company inflated its profits of to by 11.53 billion yuan in four years, but the actual situation is that it is losing money every year, and the cumulative amount is between 1.4-2.4 billion yuan.
Previously, the Shenzhen Stock Exchange made it clear that illegal acts such as ST Kangde inflated profits are clear, and the evidence is conclusive. Moreover, it lasts for a long time, has a large amount of money involved, and is harsh means, which seriously undermines the basis of market integrity. In order to firmly safeguard the seriousness and authority of the delisting system, we will "retreat all that should be withdrawn" for companies that seriously disrupt market order and encounter delisting situations, and severely crack down on malicious evasion of delisting.
Through the above notification, it is not difficult to find that the current prevalent capital is moving away from the real and towards the virtual wind. Some companies with serious losses have repeatedly tried to continue their lives unlimitedly by modifying their financial reports and marching in the capital market. For any investor, these illusions are super risks comparable to black hole level. Especially in an era when the total money supply is rising, a large amount of liquidity that has nowhere to go is expected to discover and package some junk stocks that were not noticeable in the past, and then make profits by playing the drum and passing the flowers. When things could no longer be covered, I was already calmly out of the matter.
During the entire scam operation, there must be a large amount of money from overseas waves, and even many underground black money franchises that are shameful. But the final target of harvest is the legal investment and retail investors who blindly follow up. not only did not help any real economy, but also destroyed all aspects of social and economic life at a higher level.
Severe punishment new policy
Of course, with the frequent occurrence of financial reports and stock market price chaos, extremely severe regulatory punishment measures have also emerged. According to the explosive news on the other side recently disclosed, Guangdong Rongtai was punished by the China Securities Regulatory Commission in accordance with the new " Securities Law " for financial fraud in 2018-2019.
What is worth our attention is:
1 The fine limit exceeds 600,000. The China Securities Regulatory Commission imposed a penalty in accordance with the new Securities Law on financial fraud by listed companies, fined the chairman of the listed company 3.3 million yuan and the financial director 1.6 million yuan. It is worth mentioning that the chairman’s annual salary is 300,000 yuan, and the fine is equivalent to the money earned in 11 years, and the financial director’s annual salary is 165,000 yuan, and the fine is equivalent to the income in the past 10 years.
2 The fine amount is as high as 13.7 million yuan, and the profit increase of financial fraud in two years is 55 million yuan.
3 The punishment covers a wide range of areas. listed companies have been punished for the chairman, financial director, secretary of the board of directors, deputy general managers, 2 employee supervisors, , 3 directors, 4 independent directors and supervisors. A total of 14 people have been punished. Among them, four independent directors receive 60,000 labor fees from listed companies every year, so they are fined 500,000 yuan.
In response to this, the CSRC publicly stated: will strictly punish illegal acts that although they began before March 1, but are still occurring and causing serious harm.
It can be seen that relevant departments have paid more and more attention to the crackdown on financial fraud. , and for ordinary investors, this is also a bad phenomenon worthy of reverse interpretation. This means that at least at present, there are still many companies that rely on beautifying financial reports to create false prosperity. Most of the tentacles they use to absorb nutrients are buried deep in the stock market, and we have to ask each of us to remain vigilant.
But in many cases, there are always various artificial interference factors, trying to constantly distort our cognitive deconstruction.
Hong Kong Securities Regulatory Commission cracked down on online stock fraud overnight
Still on March 15 this year, the Hong Kong Securities Regulatory Commission suddenly issued a restriction notice to 15 brokerage banks. prohibits them from processing some assets in 32 trading accounts. These include Qinfeng, Galaxy China, Tonghai, Emperor Ying, Jinsheng, Minghui, Futu , Huatai Finance , Yiying, Kaiji, Jufu, Solomon, Sun Hung Kai Investment Services, Sun International and Yuzhou Finance. Institutions subject to the above restrictions will not be able to dispose of any assets in the trading account in any way without the prior written consent of the CSRC. The cause of the
incident was that many so-called investment masters emerged on social media a while ago. Most of them have established multiple stock trading social groups, and often attract users with female avatars that are easy for people to let go of their vigilance. First, use caress to deceive the victims' confidence, and then convince the other party to purchase some artificially hyped shares. The final outcome is naturally that investors suffer significant losses, and only when they hate the statements, they realize that they have been blocked and deleted. It is said that the biggest driving force behind it is the long-term market manipulation activities of a listed company.
In fact, similar illegal activities have long appeared in the country for a long time. There are always people who have given up their rationality and vigilance that they should always be for the purpose of greed. So much so that we spend money to invest in so-called high-quality stocks that have no good news and seem to have surged. If we could understand the similar operating principles, there would probably be no more victims going forward.
Sometimes, each of us needs to use a certain degree of supervision and internal control awareness. Dare to question others, and you cannot relax your self-examination. Only by being so cautious can one participate in the investment market of Iron-Ming Wuqing. Otherwise, you can only accuse yourself of your own blood and tears, but it will make others' carnival feast. Even if someone with ulterior motives is found swimming naked after the tide, the beautiful underwear that once whitewasted and covered him is also paid for by your ignorance and hard work.
