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The number of stocks with negative net value in the market is closely related to the trend of the market. Currently, there are 685 stocks with negative net value in the two cities, and the negative net value stocks are mainly concentrated in the real estate, basic chemicals, construction and decoration industries. From the perspective of the industry's negative net value rate, the negative net value rate of the banking and real estate sectors is relatively high.

The number of stocks with negative net assets is highly correlated with market performance

The number of stocks below net asset value in the market is often positively correlated with market trends. When the stock market is sluggish, the number of stocks below net asset value gradually increases, and the market moves towards the bottom. When the bull market comes, stocks below net asset value are the first to be eliminated.

Statistics from Securities Times Databao show that as of the close of August 13, the number of stocks below net value in the Shanghai and Shenzhen stock markets was 685. Looking at several important historical bottoms in the past, the most recent time when the Shanghai Composite Index was at 2638 points, there were 66 stocks below net value, and when the Shanghai Composite Index was at 1664 points, there were 173 stocks below net value. There were no stocks below net value when the Shanghai Composite Index was at its highs of 5178 points and 6124 points.

The number and proportion of stocks with negative net assets at various important historical points

Industry characteristics of stocks with negative net assets

So far, a total of 685 stocks in the two cities have broken net value. According to the Shenwan first-level industry classification, real estate stocks are the most prone to breaking net value, with a total of 61 stocks on the list, the largest number of stocks with broken net value. Basic chemicals and construction decoration have 60 and 49 stocks on the list, ranking second and third in number. In terms of industry share, the banking, real estate, steel and other industries have a relatively high rate of breaking net value. Among them, a total of 42 bank stocks have broken net value, accounting for 100.00% of the listed companies in the industry. The lowest price-to-book ratio in the sector is Minsheng Bank, with a price-to-book ratio of 0.28 times; the real estate industry has a price-to-book ratio of 59.22%, and the lowest price-to-book ratio in the sector is Financial Street, with a price-to-book ratio of 0.19 times.

From the perspective of valuation, there are 291 stocks with a dynamic price-earnings ratio of less than 20 times among the stocks with negative net assets. The stocks with lower valuations include Haiyin Holdings, Minsheng Bank, and Guiyang Bank, with dynamic price-earnings ratios of 2.76 times, 2.80 times, and 3.03 times, respectively. In terms of market performance, the average decline of stocks with negative net assets this year is 20.61%. The weaker stock prices include *ST Chaohua, ST Changkang, and ST Hanggao, which have fallen by 91.51%, 91.13%, and 85.43% respectively this year. The stocks with higher stock price increases include Nanjing Bank, Bank of Communications, and Guangzhou-Shenzhen Railway, with cumulative increases of 41.10%, 36.31%, and 35.52%, respectively.

Number of stocks with negative net assets and their negative net assets ratio in each industry

Net loss ranking

According to the latest closing price, there are 685 stocks in the A-share market whose share prices have fallen below their net assets, which is commonly known as a price-to-book ratio of less than 1, accounting for 15.12% of A-share companies. Specifically, the stock with the lowest price-to-book ratio is ST Xudian, with the latest closing price of 0.39 yuan and a price-to-book ratio of 0.11 times; followed by ST Changkang, with the latest closing price of 0.37 yuan and a price-to-book ratio of 0.12 times; Guanghui Automobile's latest closing price is 0.78 yuan, with a price-to-book ratio of 0.17 times, ranking third. (Databao)

List of stocks with low price-to-book ratios