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China Fund News Taylor

Brothers and sisters, please continue to pay attention to news at home and abroad tonight.

The first A-share stock to be delisted by market value is here?

Today, we may be witnessing history again.

On the 22nd, *ST Shentian's stock price hit the daily limit, with a market value of only 264 million yuan. This is the 18th consecutive trading day that the company's stock has a closing market value of less than 300 million yuan. Even if the company continues to rise in the next two trading days, the market value is still less than 300 million yuan, thus triggering the market value delisting regulations - less than 300 million yuan for 20 consecutive trading days. According to Article 9.2.4 of the "Shenzhen Stock Exchange Stock Listing Rules (2024 Revision)", if the total closing market value of a company's stock is less than 300 million yuan for 20 consecutive trading days, the company's stock will be at risk of being delisted.

Therefore, *ST Shentian may become the first company to be delisted due to market value in the history of A-shares.

It is worth noting that there is a precedent for delisting based on market value in B shares. On June 14 this year, Jianche B hit the limit again, and its total market value was less than 300 million yuan for 20 consecutive trading days. According to relevant regulations, Jianche B became the first listed company to reach the trading delisting indicator due to its market value not meeting the standard.

Nasdaq rebounds

U.S. stocks opened slightly higher on Monday. Traders are assessing the U.S. political landscape after Biden's withdrawal from the election. The three major indexes rose and fell. The Nasdaq once surged 1.4% during the session, and the Dow Jones Industrial Average once rose nearly 100 points before diving and falling. The S&P 500 rose 0.51%.

Nvidia rose more than 2%, and other major tech stocks such as Meta Platforms and Google rose more than 1%. Technology stocks came under pressure last week as investors dumped tech stocks and bought small-cap stocks instead - causing the S&P 500 to fall nearly 2% last week and the Nasdaq to fall more than 3% during the same period.

Crowdstrike was the worst performing stock in the S&P, falling 12%, extending last week's nearly 18% drop. According to Microsoft's previous report, the massive outage caused by CrowdStrike's security software upgrade affected approximately 8.5 million devices with Microsoft Windows operating systems installed worldwide. This figure means that this blue screen incident may be the largest IT failure in history.

The share price of Serve Robotics, an American robotics company, soared 50%. The stock once soared nearly 240% last Friday, setting a new high after the "reverse acquisition" listing in mid-April this year. On April 22 this year, the company's shareholder Nvidia converted the issuer's convertible bonds into 1.05 million common shares of the issuer at a price of US$2.42. After this capital increase, Nvidia's equity ratio in Serve Robotics has risen to 10%, triggering the US securities law's placard mechanism. In addition, the company disclosed that it plans to deploy 2,000 delivery robots in Los Angeles, San Diego, Dallas and Vancouver by 2025.

Goldman Sachs said the rotation from large U.S. technology stocks to small-cap stocks will continue until large companies raise their revenue guidance. David Kostin, the bank's equity strategist, pointed out that the Russell 2000 index has recorded its strongest five-day performance in at least 40 years.

Kostin believes that there are four reasons for the rotation: 1. With the Federal Reserve's upcoming interest rate cuts and the slowdown in US inflation data, it means that interest expenses for small-cap stocks will decline; 2. Economic growth data is stable; 3. The market expects Trump to win the US election, and during Trump's presidency, small-cap stocks have outperformed other companies and are less vulnerable to trade policies; 4. The growth premium of large-cap stocks has narrowed.