Jibit, which is known as “Maotai in the game industry”, has been attacked by short sellers continuously recently.
On January 11, Jibit suddenly dropped to a low of 330.46 yuan, and its total market value evaporated to 2.63 billion yuan compared to the previous trading day. As of this writing, Gibit’s share price was $330.46, with a total market capitalization of $23.75 billion.
It is worth noting that Jibit has been on a downward path since Jan. 5. K-line data shows that from Jan. 5 to the present, Jibit has fallen for 5 consecutive trading days, down more than 20%. On the contrary, game stocks like Sanjiu Entertainment and Perfect World have been on a stronger trend recently, and even had a stop.
Due to the high share price of Jibit, if you buy a lot at the high point on January 5, you will have to spend 44,900 yuan. If you don’t sell during the period, your current loss will be more than $10,000.
Jibit is a white horse stock in the eyes of investors, and the recent low share price performance has also caused concern among users on the scale.
Some investors believe that the plunge in Gibit’s stock price may be related to the delayed launch of the handheld game “Moore’s Manor”. Some people on the Internet exposed an announcement chart, to the effect that “in the process of preparing for the public test of the game, encountered unexpected underlying code problems, resulting in frequent lagging, bugs, flashbacks and other problems in the game …. So originally scheduled to go online before the Spring Festival “Moore Manor” hand game had to be postponed, the specific online time to be determined.”
Game products are one of the factors affecting the share price of the game sector, and if the content of the above mentioned announcement is true, it may be one of the factors causing the market confidence to waver.
There are also users who believe that the plunge in Jibit’s share price may have an impact with the loosening of institutional hold chips. Over the weekend, some market participants publicly released their views that the market faces the risk of moving from “grouping” to “dispersion” in 2021. The strategy team at Open Source Securities directly said that the current round of “cross-year market” has come to an end.
As of last year’s third quarter (June 30 to September 30), there were 1,344 public funds, 1 social security fund and 1 QFII fund holding its shares. If there is a position transfer action by the institution, it will also have a greater impact on the share price of the underlying holdings.
Of course, with the plunge in share prices, the market value of the holdings of heavy institutions is also shrinking. For example, Harvest Emerging Industry Equity Fund and Monetary Authority of Macau – Own Funds were the newest institutions to enter the top 10 outstanding shareholders of JIB in the third quarter. If these two institutions did not sell, roughly speaking, the market value of their holdings has shrunk by more than 30%.
Information shows that Jibit was founded in 2004, and is a national key software enterprise specializing in creative planning, R&D production and commercialization operation of online games. At present, Jibit has developed a number of games such as “Asking the Way”, “Asking the Way Gaiden”, “Dou Xian”, “Chaos”, “Elf Guardianship”, “Star Defense War” and “100,000 Female Men”.
Gibit has hit a low of $77.88 since October 2018, before the stock reversed and climbed to a high of $671.60 in August 2020. It took just one year and 10 months for Gibit’s share price to rise more than sevenfold.
But starting last October, Gibit’s stock price began to weaken. On October 12 last year, Jibit’s share price collapsed, plunging 8.84% on the same day, with four major institutions plus one business department selling a total of 480 million.
On October 21 last year, Jibit dropped in volume, with a full-day turnover of 994 million yuan. The LWML data shows that Shanghai Stock Exchange plus four institutional seats sold a total of 290 million. The two big drops of Jibit, there are institutions “run” phenomenon.
This round of sudden plunge is related to a brokerage conference call on the issue of “buy volume growth” of game companies. The market is concerned that as the cost of buying volume rises for game companies, it may lead to a decline in return on investment and affect the company’s net profit and other performance.
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