Because Gree wants to increase its stock price in this way.
For Gree Electric Appliances, Gree Electric Appliances itself is a relatively high-quality stock in the A-share market, and investors are also very optimistic about Gree Electric Appliances. But when Gree Electric began to implement the so-called employee stock ownership plan, investors in the A-share market were generally dissatisfied with Gree Electric's plan, and even considered it an obvious money grab. This is why Gree Electric's stock price fell again and again. fell, and Gree Electric had to choose to boost its stock price through buybacks.
1. What is going on?
This matter is mainly related to the stock price of Gree Electric Appliances, because the stock price of Gree Electric Appliances has fallen by more than 25%. This decline has caused major investors in Gree Electric Appliances to suffer heavy losses. In order to further save Gree Electric's share price, Gree said it would complete a 15 billion yuan buyback plan. Although the amount of this repurchase is very large, it does not increase the stock prices of various electrical appliances.
2. Gree Electric wants to boost its stock price in this way.
There is actually a reason for this matter. Everyone is very optimistic about Gree Electric, but they did not expect that Gree Electric would sell it to its employees at half price. To a certain extent, many investors believe that this is a money grab by Gree Electric, because the price is far lower than the price obtained by investors in the secondary market. The drop in the stock price also represents investors’ disapproval of Gree Electric. dissatisfaction.
3. I think Gree Electric Appliances may still have room for decline.
Although Gree Electric wants to increase its stock price in this way, so far, Gree Electric’s stock price is still at a low level, reaching 28% compared to the previous high. Decline. The reason why everyone is not optimistic about Gree Electric Appliances is mainly because employees of Gree Electric Appliances can actually get Gree Electric Appliances shares at a price of about 27 yuan. Most investors do not believe that Gree Electric Appliances has room for continued growth, so they choose Gree Electric Appliances. They sold their stocks one after another, which led Gree Electric to boost its stock price through buybacks.