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Sharp drop in Hong Kong stocks

Today, two individual stocks in the Hong Kong stock market plummeted in price. Among them, after being named by the Hong Kong Securities and Futures Commission for having a highly concentrated ownership, the stock of Sun Energy Group once plummeted by over 99% during the trading day, with its market value shrinking dramatically from over 20 billion Hong Kong dollars to a low of over 200 million Hong Kong dollars.

Prior to this sharp drop, Sun Energy Group was a major bull stock, with its share price increasing more than fivefold in just four months from the end of April to the end of August, reaching a high of 23.1 Hong Kong dollars per share, with its market value once exceeding 23 billion Hong Kong dollars. Recently, Sun Energy Group was also included in the MSCI Hong Kong Small Cap Index and the Hang Seng Composite Index.

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The second-largest drop in the Hong Kong stock market during the trading day is historically rare. Before 3 pm, Xinyuan Enterprise Group once plummeted by 60.9%, with a transaction volume of zero. This situation occurred because there was a sell order at 7.82 Hong Kong dollars for the stock, with no buying orders, and this sell order price was a 61% drop from the previous day's closing price.

At 3:09 pm, a buy order finally eliminated this sell order; soon after, the stock saw multiple buy orders, with the quoted price rising from 7.82 Hong Kong dollars to 15 Hong Kong dollars, and the stock eventually closed at 15 Hong Kong dollars.

It is worth mentioning that there have also been instances in the Hong Kong stock market where there was no trading for the entire day but the stock price moved abnormally.

Take September 2nd as an example, there were over 730 Hong Kong stocks with zero transactions, and more than 50 Hong Kong stocks with a drop in price on that day, among which Fu Yin Finance's share price fell by more than 10%; at the same time, the share prices of more than 20 individual stocks rose, with Yi Lighting increasing by more than 5%.

The latest revelation of institutional stocks with significant new positions

Liquidity is an important factor leading to the sharp rise and fall of some individual stocks. Generally speaking, stocks with good liquidity can often obtain better valuations and returns, which also applies to the A-share market. However, in the long run, stocks with strong fundamentals and those that have been built up by multiple institutions often exhibit a pattern of long-term slow bull markets.According to the statistics from Securities Times · Data Treasure, among the stocks without institutional holdings in the first quarter of this year, there are 12 stocks that have seen institutional holdings in the top ten circulating shareholders before the semi-annual report, with the end-of-period holding market value exceeding one hundred million yuan.

Among them, 19 institutions held a total of 50.02 million shares of Boliwei at the end of June, accounting for 50.02% of the circulating shares, ranking first. Five institutions held a total of 27.83 million shares of Runpu Food, accounting for 49.95% of the circulating shares, ranking second. 2,293 institutions held 6.10 million shares of Dameng Data, accounting for 42.72% of the circulating shares.

In addition, the shares of Feiwo Technology, Shi Chuang Energy, Hengtai Lighting, and other stocks held by institutions all account for more than 30% of the circulating shares, while the shares held by Canxin Shares and Jingwei Shares account for more than 10% of the circulating shares.

However, the significant presence of institutions in the top ten circulating shareholders of some stocks is mainly due to the lifting of restrictions.

For example, Boliwei had 74.625 million shares released on June 11, with the controlling shareholder Kunlun Dingtian Investment Co., Ltd. releasing up to 42.25 million shares. Another example is Runpu Food, which had a significant release of restrictions on April 15, with the number of released shares exceeding 25.12 million.

In the above cases, it cannot be considered as institutional construction, while the probability of Dameng Data being heavily constructed by institutions is relatively high.

Firstly, there is no situation of restriction release for this stock. Secondly, as a new stock listed in June this year, there will be more institutions winning the new share lottery, leading to a larger number of new institutions. Thirdly, looking at the top ten circulating shareholders, they are all new institutions holding shares, and they are all professional investment institutions such as funds, social security, and insurance funds. Lastly, in terms of the end-of-period holding market value, Dameng Data's institutional holding market value is also the highest, close to 1.4 billion yuan.

Data shows that Dameng Data is a leading domestic database product development service provider and a key promoter of the development of domestic database basic software industry. The company provides customers with a variety of database software and cluster software, cloud computing and big data, and a series of database products and related technical services, and is committed to becoming a world-class full-stack data product and solution provider. The company's performance in the first half of the year is eye-catching, with revenue growing by more than 22% year-on-year, and net profit growing by more than 40% year-on-year.

The stock has also been highly rated by institutions, with as many as 15 institutions participating in the rating. Among them, Zheshang Securities believes that the company insists on developing core technologies, and under the promotion of the policy environment of information innovation, there will be a continuous demand for domestic databases in the party and government as well as the industry, and with the continuous improvement of the company's profitability, the annual revenue and profits are expected to continue to grow.

In addition to Dameng Data, stocks such as Aidi, Zhonglun New Materials, and Canxin Shares may also be newly constructed by a large number of institutions in the second quarter of this year, among which Canxin Shares has a relatively high end-of-period holding market value, exceeding 300 million yuan.