All the influence of public opinion ultimately needs to be verified by the market.
On Wednesday, May 31st, the Dragon Boat Festival holiday ended, and Hong Kong Stocks resumed trading.
At 9:30 a. m., Henglong Group stock opened at 6.57 Hong Kong Dollar, down a full 10% from the closing price of 7.30 Hong Kong Dollar on the last trading day before the holiday (May 26).
The trend after the opening surprised many people - the stock price did not continue to fall deeply, but fluctuated within a narrow range of 6.50-6.60 Hong Kong Dollar, and Trading Volume expanded moderately.
With the release of risks, the opinions among major Stock Bars have become slightly more positive.
But some bad guesses gradually emerged.
"The decline is controlled at 10%, and it has not broken through the Rights Issue price of 6.2 Hong Kong Dollar. It is considered stable."
"But no one dares to buy in a big way. Everyone is waiting and watching."
"Which accounts do sales mainly come from?"
"Retail investors are the majority. Several institutional accounts have made small purchases in the 6.55-6.60 range, but the volume is not large, more like testing."
"What is the market worried about?"
"It's not a funding issue. The funding concerns have been partially resolved by the announcement. Now the market is more worried about... the Control dispute."
As trading time passes, the focus of discussion among professional investors gradually shifts.
A hot post appeared on Snowball Stock Bar:
<In-depth analysis: Zhao Chen Rights Issue's true purpose>
"Many people are wondering where Zhao Chen's 700 million funds came from, but I think this issue is no longer important.
What matters is the change in Equity Structure after Rights Issue, and what this means for the future of Henglong.
Simple calculation:
Before Rights Issue: Zhao Jianguo 40%, Zhao Chen 25%, Su Wantang 5%
After Rights Issue:
Zhao Jianguo 30.35%, Zhao Chen 35.71%, Su Wantang 5%, Shen Zhiyi 5%. (Note: This is a simplified calculation. By default, the three people are the actors in the song.)
The most important thing is that almost all of the 30.35% of Zhao Jianguo has been pledged.
The 35.71% of Zhao Chen is only half pledged.
More importantly, Zhao Jianguo is now in Detention Center, and even Board of Directors cannot participate.
And Zhao Chen is Acting Chairman, which holds the power of management.
Here comes the question: What should I do after the year Voting Rights was authorized by Zhao Jianguo to Zhao Chen?
If after one year, Zhao Jianguo wants to take back Control, will Zhao Chen give it up?
If Zhao Jianguo cannot get out, or the judgment is heavy, what will happen to his shares? Pledge? Auction? Or will they be inherited by Zhao Chen?
In either case, Henglong faces a potential battle for Control.
What the capital market fears most is uncertainty.
So today's 10% drop is superficially affected by funding doubts, but in essence it is concerns about the uncertainty of Control in the future."
This analysis was quickly forwarded a large number and gained widespread recognition.
At 11 o'clock in the morning, Zhao Chen looked at the stock price chart in the office without any disturbance in his heart.
Chen Xi stood aside and reported:
"The opening fell by 10%, but it did not break the Rights Issue price. Trading Volume was 50% larger than usual. It was mainly retail investors selling and institutions were waiting and watching."
"Better than expected." Zhao Chen said, "At least not Too Big to Fail."
Zhang Qingxue answered:
"The market focus has shifted from the funding issue to the Control game. This is actually good for us - if the funding issue continues to be questioned, more details need to be disclosed.
But Control game is a common problem in corporate governance, and there is more room for explanation."
Su Wantang added softly:
"Moreover... public opinion's attention to Zhiyi is declining. The new hot spot has shifted."
Sure enough, Zhao Chen opened social media,
I found that the topic #Henglong Crown Prince bought shares for my girlfriend# has disappeared from the hot search list.
Instead, there are new topics such as #hengcontrolbattlement# # wealthy father and son rebelling against each other#.
"Lin Wanqing made a miscalculation this time."
Zhao Chen said, "She thought that raising doubts about funding would hit us hard, but the market has its own logic. Investors are more concerned about who has the final say in the company's future than the source of the 700 million fund."
"So do we need clarification on the Control issue?" Chen Xi asked.
Zhao Chen thought for a while and shook his head:
"No need for now. Sometimes, moderate uncertainty can maintain attention. As long as the stock price does not fall below the key support level, let it ferment naturally."
He paused:
"But we need to monitor the situation at Zhao Jianguo. When will his case be prosecuted?"
"Not sure yet." Zhang Qingxue replied.
Despite the shift in public opinion, Shen Zhiyi's life on campus was not easy.
Chen Xi arranged for her to live in an apartment near the company, avoiding the media's siege, but she could not avoid the eyes and comments of her classmates.
From time to time, strangers apply for friends in WeChat group, leaving various messages:
"Hello, senior sister, I am School of Finance, a freshman. Can I ask you some investment questions?"
"Ms. Shen, I am <Finance Weekly> reporter, I would like to schedule an exclusive interview..."
"Sister Zhiyi, can you share your experience on how to get to know the rich second generation?"
There are even more first-rate ones:
"Ms. Shen, Zhao Chen, do you have any single brothers around you? Let me introduce you to them!"
Shen Zhiyi chose not to reply at all.
What bothered her even more was her parents' attitude.
Since knowing the true identity of Zhao Chen, the attitude of father Shen Wentao has become extremely complicated--
I am proud that my daughter has found such an excellent boyfriend, but I am also worried that my daughter will be wronged if the wealthy family is in trouble.
"Zhiyi, dad is not against you."