Reasons why China Railway Construction's stock did not rise: 1. Additional issuance: In September 2019, it completed the issuance of 1.7 billion shares to 9 institutions, with an additional issuance of 6.75 yuan per share.

A 7% increase in shares means a 7% drop in earnings per share, which will take a long time to digest.

2. China Railway Construction’s stock has been locked up for many years: China Railway Construction has been in decline for 7 years. There are so many locked-up stocks above, and the daily turnover rate is very low. As China Railway Construction’s orders are nearly 3 trillion, it will be in the next few years.

The certainty is very good, there is no room for imagination, and banks are in this category.

Technically, the trend of CRCC is downward. It has been falling for 7 years. As a retail investor, do you have a higher probability that the stock will rise because you buy it, or will it rise if you cut the stock? The answer is obviously the latter.

3. The historical price is high. Before 2019, the price of China Railway was 30% higher than that of China Railway Construction (price-to-earnings ratio). It gradually leveled off in 2019 but is still 10% higher. China Railway's AH ratio is 1.19 and China Railway Construction's 1.09; China Railway's A ratio

H shares are 40% more expensive. China Railway’s H shares are only 4.8 Hong Kong dollars today, while A shares are 5.7 Hong Kong dollars.

4. As a central enterprise, the main purpose of listing is to raise funds.

The major shareholder is the state. Unlike private individuals or private shareholders, market value has no meaning for central enterprises. There is no need to prove how high the value is. A low market value cannot mean anything and does not affect the normal business operation of the enterprise.

5. Judging from the financial statements, the earnings per share in 2020 is RMB 1.5 yuan, and the price-to-earnings ratio is very low; the net assets are 14 yuan, and the price-to-book ratio is also very low; everyone can see this.

However, the receivables and debt ratios are very high, and the money earned is all in the books and all receivables. The net assets of 14 yuan obviously cannot be realized.

6. Transfer and reduction of holdings. On July 25, 2018, 420 million shares were transferred, about 3 billion yuan. At the end of 2018, Huaxia Yinhua Boshi ETF China Railway accounted for 19.9%, that is, the shares were exchanged for ETFs and sold. I don’t know if these 30

Billions sold out yet?

China Railway Construction Co., Ltd. was established in Beijing on November 5, 2007 by China Railway Construction Corporation. It is a very large construction enterprise managed by the State-owned Assets Supervision and Administration Commission of the State Council.