The so-called residual stocks refer to stocks whose stock prices have fallen to very bad.
The two small stocks held by the day before yesterday, Mei Gaoyu (01985) and Huaxin handbags (02683), were all in the same breath, and the two profit warnings were unexpected. They thought that the stock price would fall at least 10-20%, but I was surprised that I couldn’t think of the stock price just after a slight decline.
Then there is today’s TPV Technology (00903), the third quarter results turned into a profit, and the stock price rose 30%, which made me stunned, completely missed this performance.
The remnant stocks did not react too much to the bad news. The reaction to the good news was huge. It seems that many remnants have refused to fall again, and they have bottomed out in the short-term, so they plan to use part of the funds to absorb the remnant shares in the next half of the month, aiming to reduce the cash level. About 30%, in terms of current valuation, it should be a very safe deployment.
Of course, if the HSI really sees 4 digits in the foreseeable future, then I can only sigh today’s recklessness.