The Science and Technology Innovation Board (STAR Market) has never been very friendly to retail investors; you need to have more than 500,000 yuan in your account to participate in STAR Market trading.
The T+2 trading mechanism means that if you buy a stock that's about to crash, you won't even have time to run away.
In addition, many companies on the Science and Technology Innovation Board are operating at a loss, making it difficult for retail investors to judge whether a company has investment value from a professional perspective. As a result, retail investors have never been very enthusiastic about participating in trading on the Science and Technology Innovation Board.
However, this time, Kechuang Bio has already sparked heated discussions among shareholders even before it has reached the listing stage, or even before it has gone through the issuance and listing process.
This is mainly because Kechuang Bio's products are monopolistic and technologically advanced.
While other companies' brain-computer interface (BCI) technologies are still in the laboratory stage, Kechuang Bio's BCI technology has already been commercialized on a large scale.
The large-scale purchases and news reports of endorphins in various countries during the pandemic served as excellent advertising for them.
Not to mention the questionable practices of the Canadian government and some states in America, which provide addicts with endorphins free of charge to help them quit morphine-like addictive substances.
This is the only substance discovered so far that can significantly reduce addiction to morphine-like drugs.
In addition, and most importantly, the prospectus of Kechuang Bio states that the listing price is 1018.23 yuan per share.
In the STAR Market, a winning bid for a new stock is 500 shares, which is worth 500,000 yuan. According to convention, the stock price usually rises by at least 30% upon listing.
QuantumCTek, touted as the first listed company in quantum communication, saw its stock price surge by as much as 1,000% when it went public on the Science and Technology Innovation Board last year, more than ten times its initial value.
As the first listed company in the brain-computer interface sector, it wouldn't be unreasonable for Kechuang Bio to increase its value fivefold, right? If we calculate based on a fivefold increase, winning a single share would net a profit of 2.5 million yuan, which is roughly equivalent to an apartment in a second-tier city.
Stock market investors are incredibly enthusiastic about Sci-Tech Biotech.
Not only individual investors, but institutional investors are also very enthusiastic.
Since its listing this year, Kechuang Bio has received visits from more than 200 institutions.
Especially after the approval from the Shanghai Stock Exchange, approximately 150 institutions conducted research within just two weeks.
Li Miaomiao realized she was about to become the CFO of a listed company during a period of intensive institutional research.
The institutions have very strong research capabilities. Profitability, R&D investment, and R&D capabilities are all basic research topics. The relationships among senior management, the stability of the management team, and the intensity of shareholder struggles are advanced topics.
The company's actual controller has a clear profile, personality traits, risk preferences, and even hobbies.
Li Miaomiao is equivalent to the third most important person in Kechuang Biotechnology, second only to Zheng Li and Cheng Gang.
However, everyone in the organization knows that Li Miaomiao is the person Zheng Li trusts most in Kechuang Biotechnology. He brought her from Jiangcheng University to Kechuang Biotechnology and promoted her to deputy general manager.
On the surface, she is the third most important person, but her power is no less than that of Cheng Gang, and to some extent, Li Miaomiao has more say than Cheng Gang.
Furthermore, Cheng Gang knew that he was just a professional manager at Kechuang Biotechnology and had little power compared to Zheng Li, the absolute controller. Therefore, he would not engage in a power struggle with Li Miaomiao.
On the eve of Kechuang Bio's listing, Li Miaomiao participated in the research conducted by external institutions.
Some outside speculative capital even tried to solicit votes from Li Xulin through his channels.
When a company goes public, speculative investors or institutional investors will usually come to lobby for its approval.
"Ms. Li, we are very sincere, and please believe in our strength. The funds we manage exceed 20 billion RMB."
The bigwig behind the private equity firm approached Li Miaomiao and, during a private chat after the institutional research concluded, discussed the following:
"We don't need you to do anything, just introduce us to Chairman Zheng and tell us about his interests and hobbies. This group of Yoshitomo Nara's Lone Stars is just a small token of our respect."
Li Miaomiao was startled. Since becoming the deputy general manager of Kechuang Biotechnology, she had faced many temptations, but this was the first time she had encountered such a large-scale move as the head of a private equity firm.
She wondered to herself, "How did they know I like Yoshitomo Nara's works? A set of Yoshitomo Nara's works would cost at least one million RMB."
Li Miaomiao remained expressionless: "Two hundred billion probably won't do much. The listing price of Kechuang Bio is four hundred billion RMB. It's probably a bit difficult for you to leverage such a large market with two hundred billion."
"Moreover, your 20 billion is only the scale you manage; the amount of money you can actually use for operations is no more than 30%."
"Bai Piao" means that speculative investors or institutions visit the actual controller of a new company on the eve of its listing to request cooperation.
The actual controllers of listed companies may use various means, such as embellishing financial statements and hiding positive news, to cooperate with institutions to manipulate stock prices.
For example, they might push back the company's quarterly profit forecast, resulting in lower-than-expected profits, and then release some negative news or have the media publish some negative news, allowing speculative funds to take the opportunity to sell off and drive down the stock price.
Then, after the stock price is pushed down, the profits hidden in the previous quarter are reflected in the quarterly report in the next quarter, a few more positive news items are released, and the institutions push the price up again before selling off their shares.
They fleeced retail investors like韭菜 (a metaphor for easily exploited people).
The head of the private equity firm that came to solicit votes laughed and said, "The operation of Kechuang Bio is not that complicated. All you need to do is for Chairman Zheng to give us the news when there is a breakthrough in brain-computer interface technology or when the company's new drug is successfully developed."
"We will naturally take action, entering the market early and operating appropriately. With a market size of 400 billion, even a casual game can generate astonishing profits."
“We don’t have that much ambition. The China Securities Regulatory Commission will be particularly strict in its supervision of this kind of scheme, so we just want to make money from the news.”
Of course, some companies are too large, or their controllers don't care about the money from upstream investors and don't participate in capital market operations.
However, even if you don't participate, you can't guarantee that your subordinates won't. As long as there's any inside information, it will definitely be leaked out in various ways.
Since the main R&D center of Kechuang Bio, which is also the R&D center where Zheng Li is located, is in Singapore, these institutions are too far away to reach it, and it is difficult to get information. In addition, the pandemic makes it difficult to travel back and forth.
Moreover, as a key figure in the research and development of innovative biotechnology, Zheng Li's news is definitely the fastest, and the capital market is also very fast.
In 2011, Hibernian Express laid a 6,021-kilometer-long submarine optical cable between New York and London, costing over 300 million yuan per meter, in order to save 6 milliseconds.
Li Miaomiao neither agreed nor refused: "Mr. Chen, I will convey your message to Chairman Zheng, but whether Chairman Zheng is willing to meet with you is beyond my control."
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