The impact of Jinkai Xinneng’s shareholder reduction on stocks:

1. Dilute the total amount of funds in the secondary market, because major shareholders will often reduce their holdings by 1%. It will bring tens of millions or even hundreds of millions of dollars of capital outflow from the securities market, especially those major shareholders who have reduced their holdings from the perspective of financial investment.

2. The large reduction of shareholders' holdings shows that the company's leadership has discovered that the company's profitability will decline significantly in the future, and the stock price may reach a high point that cannot be surpassed for a long time in the near future, which will significantly suppress the stock price.

3. From the perspective of industrial capital, financial capital is reminded that even controlling shareholders have begun to reduce their holdings. So, why are small and medium-sized investors as financial capital still struggling to support? Therefore, shareholders are reducing their holdings. Holding is equivalent to providing a new yardstick for valuation.

4. It revitalizes the chips in the stock market and improves the liquidity of the chips in the stock market. After all, the reduction of holdings by some major shareholders is not because the stock price is seriously overvalued, but because the controlling shareholders reduce their holdings due to financial problems.

5. Once shareholders’ holding reduction chips are absorbed by the market and the stock price actively rises again, it is very likely to strengthen the bull market atmosphere in the stock market and rise all the way amid the continued reduction of holdings.

The impact of shareholder reduction on shares is very large. The main reason is that it may lead to market fluctuations and is not conducive to the survival of small and medium-sized investors. In judicial practice, shareholders are not allowed to withdraw capital, and can only transfer equity through certain commercial procedures. However, this must be approved by the shareholders' meeting, and the transferred stocks must be explained to avoid causing any harm to the company's operation and development. Adverse impacts should be determined based on actual circumstances.

Reducing holdings is a term used in the stock market and futures market to reduce the number of stocks or futures indicators held. After non-tradable stocks can be circulated, they will sell them to cash out, which is called reduction of holdings. Specifically refers to the stock selling behavior of major shareholders of listed companies that comply with the "Guiding Opinions on the Transfer of Existing Shares of Listed Companies on Lifting Sales Restrictions" and makes timely information disclosures. Not applicable to ordinary investors. Since the shares held by big and small non-profits have almost zero cost, and the secondary market price of circulating stocks has been speculated to a very high level, once the stock market reverses, big and small non-profits will do whatever it takes to stop their profits. Therefore, before new policies and measures are introduced, small and medium-sized retail investors should study the new characteristics of large and small non-reductions and perform the following operations during the rebound.