On September 26, NVC Lighting (02222.HK) closed down 2.67 Hong Kong dollars, down 2.55%. Compared with HK$3.37 on September 9, it fell by 0.7 Hong Kong dollars, a decline of more than 20%, and the market value evaporated by nearly 2 billion Hong Kong dollars.
All of this stems from the fact that NVC Lighting Chairman and Major Shareholder Wu Changjiang and HSBC Private Bank (Switzerland) Limited Hong Kong Branch (hereinafter referred to as “HSBCâ€) entered into a “gambling†agreement at the end of August.
On September 20, NVC Lighting announced that Wu Changjiang and HSBC had entered into a bullish equity derivative transaction. According to the agreement, Wu Changjiang could purchase up to approximately 49.99 million shares of NVC Lighting. On September 9, Wu Changjiang sold 15 million shares to HSBC Private Bank for HK$3.3749 per share, and its shareholding fell to 19.17%.
In the early morning of September 20, Wu Changjiang sent Weibo to explain that the stock price was seriously undervalued, so he spent more than 30 million Hong Kong dollars to buy 50 million shares of options from HSBC.
Despite this, Wu Changjiang sold 15 million shares in large quantities. This move was interpreted by the market as Wu Changjiang was bearish on the market, causing panic in the market. NVC Lighting shares fell all the way.
"This is Wu's private investment behavior. He is optimistic about the performance growth of NVC Lighting. He also feels that the stock price is low, and he hopes to take the opportunity to increase his holdings." Shi Yongjun, assistant to the president of NVC Lighting, told the "First Financial Daily" yesterday.
Shi Yongjun pointed out that the setting of Wu Changjiang's share repurchase stock subscription period after 6 months is exactly after the release of NVC Lighting's 2011 annual report, and Wu Changjiang believes that after the announcement of the company's performance growth figures in 2011, it will definitely stimulate the stock price growth. Successfully achieve its goal of increasing its holdings. NVC's financial report for the first half of 2011 showed that NVC's revenue in the first half of the year was US$267 million, a year-on-year increase of 30.9%, and a net profit of US$39.58 million, a year-on-year increase of 52.6%.
"I did not expect that the Hong Kong stock market's recent decline in the market, the stock price of NVC Lighting followed the decline. As the company's market value evaporated, it was not expected." Shi Yongjun said.
The person in charge of Huarui Investment said that the reason for the diving of NVC Lighting's stock price is that the market believes that the major shareholders are cashing in, while Wu Changjiang believes that the company's performance will drive the stock price to rise. However, in the capital market, sometimes the stock price cannot be completely equal to the performance, "and the company's market value will greatly evaporate, which will directly affect the confidence of the shareholders."
As the gambling agreement may cause significant changes in corporate equity and capital, it may affect the interests of investors. At present, the gambling agreement is not recognized by the regulatory authorities in the Mainland. Some enterprises have also cleared the relevant gambling agreement before applying for listing in the mainland. .
Ni Zhengdong, founder of Zero2IPO, said that mainland enterprises are mostly "newbies" in terms of gambling. Some enterprises suffer from unfamiliar rules, such as neglecting the hidden clauses in the agreement and understanding of compensation standards.
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