What does the breaking rate mean? The net loss rate is the ratio of the net assets per share to the net assets per share after the stock price falls below the net assets per share, MINUS the current price of the stock. Net assets per share is the last line of defense of stock price. Its theoretical significance is that even if the listed company goes bankrupt and goes into liquidation, the financial book value of the stock is the net assets per share.

for example, if the current price of a stock is 2.89 yuan and the net assets per share are 6.22 yuan, the P/B ratio is 46.45%, and the broken net ratio is 53.55%. The theoretical increase space is 3.33 yuan.

even if the listed company goes bankrupt and goes into liquidation, the financial book value of the stock is the net assets per share. From the accounting point of view, net assets are the balance of total assets minus all debts in the balance sheet. In overseas stock markets, once stocks fall below the net assets defense line (except problem stocks), corporate mergers and acquisitions or share repurchases are prone to occur. In China, the bottom line of the OTC transfer price of state-owned shares is that it cannot be lower than the net assets per share. Obviously, the net assets per share has a specific meaning, not an abstract indicator. Therefore, the practical and symbolic significance of net assets per share is very important. Breaking the issue price shows that the market is depressed and the gas is insufficient. Breaking the net asset value is the failure of the market price signal and the panic of popularity.

The higher the market breaking rate, it means that the market is already extremely depressed, which also indicates that the market contains great investment or speculation probability.

The net breaking rate is actually an emotional indicator. The business model of equity investment funds is to invest before the company goes public, cultivate it to a certain stage and then withdraw from the stock market. This is equivalent to buying the "futures" of the listed company and waiting for the company to become "spot". Once the listed companies in the stock market fall below the net assets or even the cash value, who will invest in the "futures" of the listed companies? When the industrial investors represented by equity investment begin to buy "spot" directly in the market, the net inflow trend of funds will form rapidly.

at this time, although the fundamental state of listed companies is still deteriorating, the stock price can't go down. Because most industrial investors who invest in the market at this time do not look at the cash flow and net profit representing the fundamentals. The main purpose of their investment is not to buy expectations, but to buy cheap assets, market share and industry status directly.

At this point, I believe that everyone has already understood the concept of the net breaking rate. Only by constantly learning can you know a new vision. Only by continuous innovation can society progress. In fact, investment is also reasonable. Only by learning and innovating on the basis of others can you get your own investment skills.