Sleepless night for Chinese stocks.
On the night of May 10, as soon as the U.S. stock market opened, many Chinese stocks collapsed en masse. As of press time, the drop of more than 5% of Chinese stocks reached 65. Among them, the most severe drop in the well-known Chinese stocks, one is Poundland, a water drop company just listed last Friday, fell by more than 10%.
What exactly happened?
Shanghai Consumer Protection Commission interviewed
Pindo plunged 130 billion
Before the U.S. stock market opened, news came from the Shanghai Consumer Protection Commission: interviews were conducted with Poundland and Meituan.
According to the Shanghai Consumer Protection Commission, before and after “May Day”, Shanghai consumer market complaints are generally stable, but at the same time, online platform-type consumer disputes are relatively concentrated. For this reason, the Shanghai Consumer Protection Commission interviewed Pindo and Meituan in the afternoon of today (10), pointing out the outstanding problems in the protection of consumer rights.
The main problems of Pindo: one is the quality of goods; two is the problem of counterfeit infringement; three is the forced cancellation of orders; four is the problem of false delivery; five is the problem of after-sales service; six is the problem of price cutting to pull new.
And after the news came out, Poundland opened sharply lower and then kept going lower. As of press time, Pindo’s share price is still down more than 12% and its market value is down more than $20 billion (about 130 billion yuan).
Pindo said that the company will conduct a self-examination and purge of its related business according to the requirements of the Shanghai Consumer Protection Commission, and will submit a rectification report to the Commission in the near future.
Since its peak price of $212.6 per share on February 16, Pindo’s share price has fallen continuously to a price of less than $118, a cumulative drop of more than 44%.
Shanghai Consumer Protection Commission interviewed Meituan at the same time
The main problems are: first, the refund problem caused by the cancellation of orders; second, the problem of non-compliance in ordering and delivering meals and fresh vegetables; and third, the problem of misleading consumers on the page.
Meituan also plunged over 7% on May 10. So far, Meituan shares have experienced nine consecutive declines, and compared to the highest price earlier this year has been a heavy drop of nearly 42%.
Earlier, on April 26, the General Administration of Market Supervision said it had opened a case against Meituan for alleged monopolistic practices such as “choosing one over the other” in accordance with the law.
The IPO break is not all
Waterdrop continues to plunge 12%
Waterdrop is estimated to be the worst Chinese stock listed in the US recently.
Last Friday (May 7, local time), Waterdrop was officially listed on the New York Stock Exchange, offering a total of 30 million American depositary shares at an issue price of $12 per share. Under the escort of a host of capital, Waterdrop took the title of “the first stock of insurance technology”.
However, once listed, Waterdrop quickly broke. The company fell by more than 20% during the trading session and finally closed at $9.7 per share, down 19.17% from the issue price.
This is not enough. May 10 evening opening, Waterdrop continued to fall, as of press time, still down more than 12%. So far, Waterdrop has plunged nearly 30% since its IPO.
Waterdrop listing is actually a pretty controversial affair, according to the prospectus, waterdrop business mainly includes waterdrop chip, waterdrop insurance, waterdrop health, a year of revenue of more than 3 billion.
Among them, the water drop chip, a major disease crowdfunding platform, more than 340 million people donated, a total of more than 1.7 million patients donated more than 37 billion yuan. Waterdrop Insurance Mall as an insurance intermediary platform, the income from agency sales of insurance became the main source of 3 billion yuan revenue. Waterdrop Health Protection, on the other hand, was transformed from the Waterdrop mutual assistance platform, and the Waterdrop mutual assistance program was terminated before the IPO.
At that time, after the news of the listing of Waterdrop came out, many netizens’ opinions were on the negative side some. Some said bluntly: you think in doing public service, but in fact it is making money!
More than 60 Chinese stocks fell by more than 5%
Of course, in addition to the two companies mentioned above, on the night of May 10, there are a number of Chinese stocks collapsed en masse.
As of press time, there are 65 Chinese stocks fell by more than 5%. This includes well-known companies such as Xinxiao, Vipshop, b station, and Misty Core Technology. The Onion, which broke on Friday’s listing, had the biggest drop tonight, nearly 17%.
Recent Comments