Not necessarily. Generally speaking, the reduction of stock holdings by major shareholders is negative for the stock price in the secondary market, but it does not necessarily lead to the stock price falling the next day after the announcement of the reduction. The reason is very simple:

First, the time for reduction of holdings has happened in the past;

Second, if the stock has been controlled, the news of reduction will often prompt the main players to take the opportunity to attract funds. ;

3. If the stock price is at a low level when the holding is reduced, and the stock price is currently rising, it will be difficult to fall again.

The Shanghai Stock Exchange stipulates that when the proportion of shares purchased reaches 5% for the first time, the buying behavior must be suspended and reporting and announcement obligations must be fulfilled in a timely manner.

During the period of the above-mentioned reports and announcements, no further trading of shares of the listed company is allowed; for investors whose shareholding ratio has reached more than 5%, every 5% increase or decrease in shares must be fulfilled in a timely manner Reporting and information disclosure obligations, no further trading is allowed during the reporting period and within two days after the report.

Since the shares held by big and small non-profits have almost zero cost, and the secondary market prices of circulating stocks have been very high, 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-holding reductions.

Major shareholders of listed companies selling shares comply with the "Guiding Opinions on the Transfer of Existing Shares of Listed Companies to Release Restrictions" and make timely information disclosures. Not applicable to ordinary investors. The stock market of the People's Republic of China or the Chinese stock market generally refers to the stock market in mainland China after the "reform and opening up", sometimes including the stock market of the Hong Kong Stock Exchange.

Extended information:

Operational procedures

1. Resolutely avoid high-priced stocks with heavy positions in funds.

The higher the stock price, the stronger the desire to reduce holdings. For example, bank stocks such as Shanghai Pudong Development Bank, which are under great pressure to reduce their holdings, have been frantically "air raided" by funds. Small and medium-sized retail investors should hide in "air raid shelters" and buy low-priced stocks whose first-quarter reports have increased significantly. The performance of such stocks has just come out of the trough. Not only will they not sell them, but they may also buy them on dips, so they may enter an independent market.

2. Buy fully circulated stocks.

For example, Sany Heavy Industry, the first batch of share reform companies, is fully circulated. Those who do not want to reduce their holdings have already polished off their holdings at a high of 6,000 points, and more are considering covering at a low level. Of course, the premise is that the performance of listed companies shows growth.

3. Buying restructured stocks or renamed ST stocks

There is no risk of non-reduction of ST shares. During the reorganization, the equity has just been replaced, and the major shareholders I will not reduce my shareholding again; ST Company’s shareholding reform was late, and it is still early to reduce its shareholding; ST’s stock price is low, and most of it has fallen below the issue price, allotment price and additional issuance price. Under the cost of major shareholders, major shareholders have no choice but to reduce their holdings. Can't do it.

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