CIC’s sudden collapse and limit: or “Oolong index” caused by the company’s response that the business is normal

Wind data showed that near midday trading, CSCI had a large transaction of 9496 lots at 11:28:32, which pushed the real-time stock price down from 43.04 yuan / share to 38.51 yuan / share. According to market analysis, China Securities construction investment (CSCI) rose rapidly after the flash collapse, while the company’s news and fundamentals did not change significantly, which may be caused by the “Oolong index”. < / P > < p > it is worth mentioning that, on the first trading day of November, in addition to CSCI, Guolian securities also touched the limit in the morning trading. Meanwhile, CICC, which was listed on the first day, also opened the trading limit board, and the overall performance of “market risk” securities companies was not satisfactory. < p > < p > as the market closed in the afternoon, China Securities Construction Investment Co., Ltd. experienced a flash collapse and once touched the limit. However, CSCI then rose rapidly. As of the end of the day, it closed at 41.49 yuan / share, down 3.04%. According to the market analysis, according to the transaction data at the time of the flash collapse of CSCI and the fact that the information and fundamentals of the company have not changed significantly, the early collapse of CSCI may be caused by the “Oolong index”. < / P > < p > it is worth mentioning that in addition to CSCI, Guolian securities also once touched the limit. At the same time, CICC, a leading securities company listed today, opened its trading limit on the first day and resumed trading in the trading session. By the end of the day, CICC closed at 37.70 yuan / share, up 30.99%. According to the official website, CSCI was established on November 2, 2005 and registered in Beijing with a registered capital of 7.646 billion yuan. It has five subsidiaries, including CSCI Futures Co., Ltd., CSCI Capital Management Co., Ltd., CSCI (International) Financial Holding Co., Ltd., CSCI Fund Management Co., Ltd. and CSCI Investment Co., Ltd. On December 9, 2016, CSCI was listed on the Hong Kong stock exchange. On June 20, 2018, it was listed on the main board of Shanghai Stock Exchange. In terms of shareholders, the main shareholders of CSCI include Beijing state owned capital operation and management center, Central Huijin Investment Co., Ltd. (Central Huijin) and China CITIC Co., Ltd. According to the third quarter report, the shareholding ratio reached 35.11%, 31.21% and 5.01% respectively. In terms of business, CSCI’s main business scope includes: securities underwriting and recommendation, securities brokerage, financial consultant related to securities trading and securities investment activities, securities investment consulting, securities self-management, securities asset management, securities investment fund consignment, providing intermediary introduction services for futures companies, margin trading, sales of financial products on a commission basis, and options Market business, securities investment fund custody, sales of precious metal products and other businesses approved by the regulatory authorities. In terms of performance, according to the third quarterly report of CSCI, as of the end of the reporting period on September 30, the total assets of CSCI reached 353.800 billion yuan, up 23.85% from the end of the previous year. The operating revenue reached 15.859 billion yuan, up 63.55% from the end of last year. In terms of net profit, the net profit of CSCI to its parent company was 7.491 billion yuan in the third quarter, up 96.11% from the end of last year. < p > < p > it is worth noting that the performance of CSCI has increased significantly in the past two years. In 2017, CSCI’s revenue decreased by 14.75% year-on-year (compared with the same period of last year), and its net profit decreased by 23.56%. In 2018, CSCI’s revenue decreased by 3.50%, and its net profit decreased by 23.11% year-on-year. By 2019, the revenue of CSCI will increase by 25.54% to RMB 13.693 billion, and the net profit will reach RMB 5.530 billion, with a year-on-year increase of 78.18%. < p > < p > in terms of industry ranking, CSCI also improved steadily. Wind data shows that in 2019, CSCI’s revenue ranked 13th in the industry and its net profit ranked 8th in the industry. According to the interim report in 2020, CSCI’s revenue ranks ninth in the industry, and its net profit ranks sixth in the industry. < / P > < p > Disclaimer: the purpose of this article reprinted by china.com finance and economics is to convey more information and does not represent the views and positions of the website. The content of this paper is for reference only and does not constitute investment advice. Investors operate accordingly and bear their own risks. < p > < p > Chinanet is a national key news website under the leadership of the Information Office of the State Council and managed by China foreign language publishing and Distribution Bureau. Through 11 versions in 10 languages, the website releases information 24 hours a day, which is an important window for China to carry out international communication and information exchange.