For example, the disturbance of market rumors, the failure of restructuring and resumption of trading, the hidden danger of shareholder pledge, the accumulation of trust plans and so on. All these will lead to a stock market crash, which is inevitable when everyone is caught off guard. The following is a small series of what is called a stock market crash, for reference only, I hope to help everyone.
What is a stock market crash?
Stock flash crash refers to the situation that the stock price falls sharply in a very short time. It may be accompanied by the surge of trading volume and market panic, and may lead to the interruption or fluctuation of trading.
Under what circumstances does the stock crash generally occur?
Large-scale selling: When investors panic about the market or specific stocks, a large number of investors sell stocks at the same time, and the market supply and demand are unbalanced, and the stock price may fall rapidly.
Sudden release of bad news: if a listed company releases bad news that seriously affects market confidence, such as major financial scandals and declining performance, etc. Investors may quickly withdraw from the company's stock, resulting in a sharp drop in the share price.
Catastrophe: Accidents, natural disasters, terrorist attacks and other catastrophic events will have a huge impact on the market, and investors will panic to sell stocks, leading to a sharp drop in stock prices.
The contagion of investors' panic: When there is a chain reaction in the market, investors will have a general panic, which may trigger a large-scale selling and make the stock price collapse instantly.
What are the reasons for the stock crash?
Under normal circumstances, the stock crash may be because the valuation range of the stock is too high, and the listed companies are seriously overvalued. When the stock price is seriously inconsistent with the performance of listed companies, it may bring flash crash to the stock. It may also be that the main funds are cashed out, which leads to a serious imbalance between the supply and demand of the stock and the stock. Selling far beyond buying may lead to a sharp drop in the stock market. It may also be affected by the decline of the market size or the industry in which the stock is located, leading to panic selling by the holding investors. However, the market's buying enthusiasm is weak, which leads to the rapid collapse of the stock price, or it may be that the sudden bad news of listed companies leads to the stock price collapse. Therefore, when the stock plummets, investors should pay attention to stop loss and control investment risks.
Under normal circumstances, if the stocks in the market plummet frequently, it will reflect the low liquidity of the market and more overvalued stocks in the market. This will greatly affect the investment confidence of market investors and may drag down the overall market. For example, at the end of the A-share "bull market", some small and medium-sized enterprises, sub-new shares and other stocks often collapse. This also means that the speculative sentiment in the market is gradually declining, and the subsequent market may experience adjustment and decline.
The reason for the stock price crash.
1, the company's poor management leads to performance loss or less than expected. For example, Beinmei (002570) 20170711had a flash crash in the afternoon, mainly because the upcoming interim report may be worse than expected, which was also verified in the company's subsequent semi-annual report. The company's semi-annual report shows a net profit of -3.68.
The company said: the main reason is that the formula registration was not released as expected, and the industry order continued to be chaotic during the transition period of formula registration of milk powder New Deal, and the company faced a fierce market competition environment. Dealers are cautious and wait-and-see, resulting in lower-than-expected sales in the current period, resulting in a loss of net profit attributable to shareholders of listed companies.
2. The accumulated pledge rate of the shares of the top ten shareholders of the company is too high. On the one hand, a high share pledge rate can easily detonate the risk of liquidation, which in turn suppresses the stock price and leads to a flash crash; On the other hand, because investors are worried that shareholders are over-pledged, there is a risk of pledge liquidation, and the stock market as a whole runs downward, and they are not optimistic about the future stock price and refuse to buy.
3. The asset-liability ratio of listed companies is too high, which leads to the stock price plummeting. If the asset-liability ratio of listed companies is too high, there will be a debt crisis, which will lead to the break of the company's normal operating capital chain and may eventually lead to bankruptcy. Up to now, the latest data shows that there are 1235 companies with asset-liability ratio exceeding 50% in Shanghai and Shenzhen stock markets.
Why did the stock plummet?
1. Recently, the overall market of the A-share market is relatively depressed, with many stocks falling and the market structure outstanding. Affected by this, the net value of some structural products reached near the liquidation line, and they had to close their positions forcibly and sell them at no cost.
2. Banks tighten outsourcing business. The so-called outsourcing business is a mode in which banks entrust their own funds or wealth management funds to funds, brokers, trusts, private placements and other companies for investment. Under the situation that the overall liquidity of banks is tightening, it is natural to tighten outsourcing business. As soon as banks tighten their outsourcing business, institutions have to sell their stocks quickly to cash out.
3. From the performance point of view, the deterioration of business, radical investment leading to make ends meet, and the risk of actual controller's capital chain often become the inducement of "black swan".
4. In addition to the above reasons, bad rumors in the market, vicious speculation that hot money has been hit, etc. May have become a factor inducing the stock price to plummet.