Reporter of every business: He Jianling Editor of every business: Wu Yongjiu
Picture source: Photo Network_501046552
As the saying goes, "review the old and learn the new." Although today is Saturday, Niuyanjun (Miscellaneous Niuyan: njcjnews) is still reviewing the strange trends of some stocks yesterday, one of which is Top Group (601689, SH).
Top Group's sudden sharp drop in the afternoon yesterday caught the 32,000 shareholders they held off guard, and this trend may be related to the Tesla company's vehicle recall announcement.
In addition, data shows that yesterday, Shanghai Stock Connect just increased its holdings of Top Group by 3.54 million shares, which was the highest number of daily increase in the past week. Will the Shanghai Stock Connect be trapped this time?
Last trading slumped
Yesterday, market fluctuated upward, and individual stocks generally rose. As the close approached, the Shanghai Composite Index stood at 3600 points. Stock investors all had a sense of joy of "warm winter sun". However, Top Group's trend has become a "bolt from the blue" and is a bit "scared".
Top Group yesterday's time-sharing chart
Yesterday,Top Group opened slightly lower, and then remained at a slightly higher 1% position and fluctuated sideways.Top Group almost went a flat straight line, as if waiting for something to happen, and there was an inexplicable tension and suspense atmosphere...
As expected, at around 14:20, the big sell orders were sold quickly, and the stock price ofTop Group also began to fall sharply. After more than 10 minutes, the decline exceeded 8%. It once hit the limit 5 minutes before the closing, with a cumulative maximum drop of about 11%. Fortunately, the final purchase order was quite strong, and finally the stock price was not down to the limit of and the closing decline was still 8.86%.
Niuyanjun (Multiple Economic Niuyan: njcjnews) According to the data of Oriental Fortune, the first wave of decline was more than 10 minutes, with the cumulative amount of big sell orders close to 480 million yuan, and the cumulative amount of big sell orders for the second wave of selling orders that hit the limit was more than 480 million yuan. Yesterday, Top Group's transaction amount was 2 billion yuan. Under the pressure of two waves of selling orders totaling nearly 1 billion yuan, the stock price naturally cannot be improved.
In fact, yesterday, Top Group's dived in the previous trading day might have had some signs: On December 2, Top Group's fell by more than 8% within one minute after opening , and closed down more than 5%.
Top Group's recent daily K-line chart
Judging from the performance of the daily K-line chart, Top Group almost created a "dead-head kill" yesterday: the stock price almost fell below the 30-day moving average, and the trading volume also increased to a new high since October 25.
From this point of view, Top Group's strong rise since October 8 may temporarily be suspended. In the past two months, Top Group's highest increase by more than 84%, and has set a record high in 46 and a half years since November. Since August 2019, the stock price of Top Group has increased by more than 6 times in more than two years!
may be affected by the recall of Tesla
Niuyanjun (Multiple Eye: njcjnews) noticed that the sudden plunge of Top Group yesterday may be related to an important recall announcement issued by the State Market Supervision Administration about half an hour before the dive.
Image source: State Market Supervision Administration official website
Yesterday at 13:47, the State Market Supervision Administration issued a recall announcement - Tesla (Shanghai) Co., Ltd. recalled some domestic Model Y electric vehicles. The announcement stated: "From now on, some domestic Model Y electric vehicles with the production dates from February 4, 2021 to October 30, 2021, totaling 21,599."
Picture source: Tesla official website
As for the reasons for the recall, the announcement stated: "Some vehicles within the scope of this recall may not meet the design requirements due to supplier manufacturing reasons. The steering joints may deform or break during the use of the vehicle. Under extreme stress, the suspension link may cause the suspension link to take off from the steering joint, affecting the driving and handling of the vehicle, increasing the risk of collision accidents, and posing safety hazards. Tesla (Shanghai) Co., Ltd. will inspect the front and rear steering joints of vehicles within the scope of the recall for free, and replace the steering joints that do not meet the requirements to eliminate safety hazards."
Tesla's recent daily K-line chart
Affected by this news, Tesla's stock price also fell sharply, with a drop of 6.42%, approaching the early low of November 15.
According to Securities Times , Top Group supplies Tesla's steering knuckles and other products, and is Tesla's core supplier. Data shows that Top Group is mainly engaged in the research, development, production and sales of rubber shock absorption products and sound insulation products in the field of automotive NVH (i.e. shock absorption and noise reduction and comfort control).
Picture source: Top Group Announcement
Top Group announced on August 24, 2016 that the company received the "Supplier Determination Points" issued by Tesla. Book (Agreement) 《The company was recognized to provide products to Tesla, and the company officially became Tesla's supplier.
Now, it suddenly encountered a recall announcement from Tesla, and the problem of the recall was just in the turning link. What negative impact will it have on Top Group? Under the negative clouds, it naturally triggered a rapid escape of funds.
Shanghai Stock Connect deeply intervened or was trapped
Niuyanjun (European Niuyan: njcjnews) noticed that according to statistics from China Securities Journal, Wind data shows that excluding new stocks listed in November, A shares (including stocks on the ) had a total of 127 stocks with monthly increase of more than 50%, of which 17 stocks The monthly increase exceeded 100%.
Among the 17 stocks that doubled in November, from the perspective of industry attributes, the auto parts sector includes the most individual stocks, including Zhongjie Precision, Shangsheng Electronics, Huguang Co., Ltd., and Heli Technology. In fact, in addition to these 4 stocks, there are also Suao Sensing, Baolong Technology, Junda Co., Ltd. and other stocks in November have accumulated a cumulative increase of more than 80%. This proves that under the wave of new energy vehicles, stocks in related industrial chains have benefited a lot, and naturally have also welcomed the sought after by multiple funds.
Picture source: Oriental Fortune Network
Oriental Fortune Network data statistics show that since early November, the Shanghai Stock Connect has continuously increased its holdings in Top Group. With the continuous rise of stock prices, it has increased its holdings in the past week. The intensity is also increasing. Just yesterday, the Shanghai Stock Connect increased its holdings of Top Group by 3.54 million shares in a single day, which is also the day with the highest number of daily holdings in the past week. The total number of shares reached 39.76 million shares, a record high of more than a month, accounting for 3.61% of the company's total share capital.
However, after Tesla's recall announcement was released, Top Group's stock price is expected to be difficult to stabilize, and it will even drag down the decline of the entire auto parts sector. The probability of being trapped in the short term is quite high.
Niuyanjun (Miscellaneous Economic Niuyan: njcjnews) noticed that today's latest news showed that Wang Mingzhen, the secretary of the board of directors of Top Group, responded to media reporters on the morning of the 4th: "About the recall incident, the incident happened suddenly, and the company did not obtain any information in advance. The company has begun to understand the details of the matter and evaluate the corresponding consequences. The company will give detailed explanations to investors on Sunday afternoon, so please be patient. ”
The 32,000 shareholders in Top Group’s third quarter report must be waiting for tomorrow afternoon in a sweat.
(This article is for reference only and does not constitute a basis for trading. It is at your own risk of entering the market.)
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