In the A-share market, the trend of shareholders holding shares of listed companies is likely to affect the changes of stock market prices. Today, I would like to share with you the impact of shareholder's reduction of shares on listed companies. So what is shareholder's reduction of shares? Good or bad?

1. How much is it reduced?

In the A-share market, the reduction refers to the number of shares reduced by shareholders of listed companies, which is basically the reduction after the lifting of the ban. In the stock market, there will be an announcement when more than 5% of non-tradable shareholders of listed companies lift the ban and reduce their holdings (excluding small and medium-sized investors). Shareholders who reduce their holdings of non-tradable shares can be divided into "small size" and "small size", in which "small size" refers to shareholders holding less than 5% and "small size" refers to shareholders holding more than 5%.

2. Is it good or bad to reduce the burden?

Generally speaking, if the non-tradable shares are lifted and reduced, the natural person or small shareholders of the municipal company will reduce their holdings. Usually, these natural persons or minority shareholders make several times or more profits, and most of them will reduce their holdings and cash out after lifting the ban. The main force is also likely to wash the dishes by reducing the news. Some investors will panic and sell because of the news of reducing their holdings, making the market short, and the stock price of individual stocks will adjust and fall with great probability.

If it is a large-cap listed company, it is a major shareholder, a large investment institution or a reduction of state-owned shares. The probability of stock price decline adjustment is small, and some stocks may even rise, because only a small number of stocks will be reduced after the lifting of the ban. Moreover, because of the large disk size, a small number of reductions have little impact, and the market may have more funds to take over.

Generally speaking, for stocks with small disk size and large stock price increase in the previous period, the negative return of the announcement reduction is higher. If it is a big shareholder or a big shareholder, a big investment institution or a reduction of state-owned shares, the stock price will increase slightly in the early stage and the negative benefits will be less affected. You also need to combine stock information such as market conditions.

The stock market is risky, so you need to be cautious in investing.