in the stock markethideousslots,"ST" is a special logo used to identify listed companies that have major problems in operation, finance, etc. "ST" is the abbreviation of "Special Treatment" in English and translates into Chinese as "special treatment."
Conditions for the production of ST stocks
If a company wants to become a ST stock, it needs to meet one of the following conditions:
In the last two years, the net assets of continuous losses have been negative in the most recent fiscal year, and the audit report has been issued that cannot express opinions or negative opinions. The financial report of the most recent fiscal year has false records, misleading statements or major omissions, and has been ordered by the China Securities Regulatory Commission to rectify the uncorrected failure to disclose the annual report or interim report within the statutory time limit. After the listing of the company's shares has been suspended, it has not disclosed that the audited annual report or interim report is fraudulent issuance within the past six months. Illegal acts of material information disclosure are subject to administrative penalties by the China Securities Regulatory Commission, or other circumstances recognized by the exchange transferred to the judicial authority due to suspected crimes
Trading rules for ST stocks
Once a stock is marked as ST, its trading rules will also change, mainly including:
Increase is limited to 5%, and decline is limited to 5%. It shall not be used as the subject securities for margin financing and securities lending. If the shares held by shareholders are pledged, they may not apply for cancellation of the pledge. Refinancing and lending are not allowed. It shall not be used as the subject of agreed repurchase securities transactions.
The warning effect of ST stocks
The setting of ST stocks is mainly to warn investors and make them more cautious before investing. Because ST stocks often have greater risks, they may face the risk of delisting. When purchasing ST shares, investors need to fully understand the company's operating conditions, financial conditions, as well as market expectations and risks.
Investment strategy for ST stocks
For ST stocks, investors need to adopt cautious investment strategies. On the one hand, investors should avoid blindly following the trend and not blindly buy ST stocks due to market hype. On the other hand, before purchasing ST stocks, investors should conduct in-depth research on the company's fundamentals, performance expectations, industry prospects, etc. to find truly valuable and potential investment targets.
Delisting risk of ST stocks
The biggest risk facing ST stocks is delisting. Once the company loses money for three consecutive years or has negative net assets for three consecutive years, the company's shares will be suspended from listing. If the company still cannot eliminate the risk of delisting within 6 months after the suspension of listing, the company's shares will be terminated and the stock market will be completely withdrawn. Therefore, when investors purchase ST stocks, they need to fully assess the risk of delisting and control the risk.
In general, ST stocks are a special stock type with both risks and benefits. When purchasing ST stocks, investors need to fully understand the risks and adopt prudent investment strategies. At the same time, investors also need to pay close attention to the company's operating conditions, financial conditions, as well as market expectations and risks in order to make correct investment decisions.