The rise or fall of stocks is not determined by the lifting of the ban, and the lifting of the stock ban does not mean that major shareholders will immediately reduce their holdings. The rise or fall of the stock is determined by many factors such as supply and demand, the amount of funds, performance, policies, news, etc.

The lifting of the stock ban means that a large number of non-tradable shares can be circulated. The reduction of holdings requires an announcement in advance. If the non-tradable shares account for more than 5% of the total share capital, it generally requires more than two years to reduce the holdings. The non-tradable shares account for less than 5% of the total share capital.

Yes, it is generally required to reduce holdings after one year.

The definition of stock unblocking is that restricted stocks can be freely traded in the secondary market after passing the restricted commitment period.

Generally speaking, starting from the day the ban is lifted, the stocks that have been lifted can be traded freely.

If the restricted shares held by the enterprise have signed an agreement to be transferred to the transferee before the ban is lifted, but the equity registration has not been changed and the shares are still held by the enterprise, the enterprise will actually receive income from reducing its holdings of the restricted shares.

According to the regulations of the China Securities Regulatory Commission, the sale of original non-tradable shares of a company after the share reform shall comply with the following regulations: (1) From the date of implementation of the reform plan, it shall not be listed for trading or transfer within 12 months; (2) Holding

Shareholders of original non-tradable shares that account for more than 5% of the total shares of a listed company, after the expiration of the provisions of the preceding paragraph, may sell their original non-tradable shares through listing transactions on the stock exchange. The proportion of the number of shares sold to the total number of shares of the company shall not be exceeded within 12 months.

exceeds 5% and shall not exceed 10% within 24 months.

Non-tradable shares that obtain circulation rights are called restricted shares because they are restricted by the above-mentioned circulation period and circulation ratio.

Generally speaking, the lifting of the ban on individual stocks will increase the supply of stocks. If the demand for stocks remains unchanged, the stock price will fall. However, the specific situation needs to be combined with the fundamentals of the stock, its price when the ban is lifted, and the market situation at that time.

For example, if some stocks have oversold or reached the sideways breakthrough zone, then once the ban is lifted, shareholders are very likely to sell higher. On the contrary, if a stock with poor performance is lifted or reaches a high level, it is more likely to fall. Of course, it must be appropriately combined with the current situation.

Market trends and detailed analysis of specific issues.

Generally speaking, for large state-owned enterprises, the impact of the lifting of the ban on large non-profit enterprises is relatively small, because state-owned capital rarely reduces its holdings.

As for sectors such as GEM and Small and Medium-sized Enterprises that create myths of sudden wealth, you need to be cautious, as they will generally trigger a sharp decline.

This answer is provided by Kangbo Finance. Kangbo Finance focuses on interpretation of hot financial events and popularization of financial knowledge. It adheres to professionalism, pursues fun, produces financial content that people can understand, and delivers financial value in vivid and diverse ways.

Hope this answer is helpful to you.

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