Tourists ask: What kind of stock will be ST? Is the net asset per share lower than the face value of the stock?

Changjiang Securities Tianyaoqiao Road Sales Department A: ST is the English Special Treatment abbreviation, which means "special treatment." The policy is aimed at listed companies that have financial or other abnormal conditions.

On April 22, 1998, the Shanghai and Shenzhen Stock Exchanges announced that they would specialize in the trading of stocks of listed companies with abnormal financial status or other conditions, and prefixed them with “ST” before the abbreviation. For ST shares.

The so-called "financial abnormality" refers to the following situations: (1) The audit results of the last two fiscal years show a negative net profit. (2) The audit results of the most recent fiscal year show that its shareholders' equity is lower than the registered capital. In other words, if a listed company loses money for two consecutive years or its net asset value per share is lower than the face value of the stock, it will be treated specially. (3) The certified public accountant issued an audit report that could not express opinions or negative opinions on the property report of the most recent fiscal year. (4) The audited shareholders' equity of the most recent fiscal year is deducted from the portion of the CPA and the relevant departments that are not confirmed, which is lower than the registered capital. (5) A recent audited financial report adjusted the profit for the previous year, resulting in losses for two consecutive fiscal years. (6) It is determined by the Exchange or the China Securities Regulatory Commission that the financial situation is abnormal.

Another type of "other abnormality" refers to the natural termination of production and business activities caused by natural disasters, major accidents, etc., and the company involved in litigation where the amount of compensation may exceed the company's net assets.

During the special processing of stock trading of listed companies, the stock trading shall follow the following rules: (1) the price of the stock quote is limited to 5%; (2) the name of the stock is changed to the original stock name plus “ST”, for example “ST Steel Pipe”; (3) The interim report of the listed company must be audited.

Due to the daily increase and decrease of ST stocks limited to 5%, it also inhibited investors' deliberate speculation to some extent. Investors are also treated differently for specially processed stocks. Some ST stocks are mainly operating losses, so it is difficult to turn losses into profits in the short run; some ST stocks are losses due to special reasons, or some ST stocks are undergoing asset restructuring, these stocks often have huge potential.