Watch Out For Employee Stock Ownership Plans To Become Another "Bomb" In The Stock Market.

A few days ago, gold leaf jewelry announced that the stock early warning line of the first phase of the employee stock ownership plan has been dropped and close to the stock closing line. In order to prevent risks, the company's stock will apply for suspension.

The listed company also said it would take active measures to reduce the risk of liquidation through effective measures such as raising funds and additional margin.

I believe that we must be vigilant against the employee stock ownership plan of listed companies as another "bomb" in the A share market.

In January 15th this year, Golden Leaf Jewellery's first phase employee stock ownership plan completed the purchase of shares through the 3 capital asset management plan of Bo Shi capital, with a cost of 18.49 yuan per share.

Statistics show that the total assets of the asset management plan are 300 million yuan, and the priority share and the inferior share are set up according to the proportion of 2:1.

According to the agreement, the stock early warning line purchased by the employee stock ownership plan is 16.05 yuan, and the stock closing line is 15.60 yuan.

Before the suspension, the Gold Leaf Jewellery newspaper closed at 15.92 yuan, which is very close to the closing line.

If the market continues to fall, there will be a risk of being liquidated.

Therefore, the listed company's suspension is also the result of forced efforts.

This year, the A share market has been in a state of panic. The Shanghai Composite Index has broken through all the integer points from 3500 to 2700, and the losses suffered by investors and the degree of market confidence are understandable.

The turbulence of international financial market, the registration system will be introduced, the fusing mechanism is not acclimatized, and the growth rate of GDP is down, all of which are the factors that cause the market to seek support.

Of course, the two financial balance continued to decline, the large shareholders of listed companies pledge stock and information management plan frequent explosion, and so on, is also one of the many "straw" that has crushed the market.

Besides the A share market, we need to further "leverage" and reduce the leveraged funds entering the market to a minimum. We should also reflect on the constantly launched innovation measures.

No need to mention the fusing mechanism. Even the margin trading system is worthy of improvement.

For example, the peak value of the two financial balance appeared in June 18th last year, and the stock market began to decline in June 15th, from 5178 to 2850.

These burst positions

It will aggravate the market turbulence and have a negative impact on the market.

If the financing business and margin trading can be balanced, the result will be totally different.

China's capital market needs innovation, but it needs more market oriented innovation, pledge repo trading, equity incentive, ESOP and other innovative measures.

Otherwise, the innovation of mechanism like acclimatization is not only beneficial to the development of the market, but will also damage the interests of the market and investors.

Such innovation, do not mention it!!!

It began to appear in mid June last year.

Its disastrous consequences cost the entire market a heavy price.

Although the overall high valuation of listed companies was the main factor that led to a fall in the market, leveraged funds such as OTC and other funds played a "fuel" role, which led to the stampede of market funds and the tragedy of killing more.

If it is not for the regulatory authorities to bail out the market, the consequences will be even more serious.

Because of this, the regulatory authorities have adopted a series of measures to "leverage".

However, from the current market situation, there is room for further deepening of the "leverage" in the A share market.

In fact, both the large shareholder pledge shares and the information management plan, which are forced to close up by Hui ball technology, have already highlighted the hidden risks of leveraged funds.

Such risks are not, as regulators say, "risk controllable".

Step by step, if the market is really "risk controllable", there will be no stock market crash last year, and the regulatory authorities need not make great efforts to "leverage".

Therefore, for

The phenomenon of ESOP stocks falling through the early-warning line, we can no longer have the illusion of "controllable risk", but we should take active measures.

Notice that since 2014, the China Securities Regulatory Commission issued the guidance on the implementation of the employee stock ownership plan of listed companies, a large number of listed companies have been involved in it.

According to statistics, in January 1, 2015 ~2016 January 29th, 425 listed companies disclosed ESOP, of which 198 were implemented.

From the 164 companies that disclose profit and loss data, 110 of the employee stock ownership plans appear to be floating deficit, accounting for 67.07%, and some are even in deep deficit.