How to determine major shareholders overweight

In the split share structure reform, investors increased holdings of major shareholders have seen the plans, which are holdings of major shareholders are mostly in order to stabilize stock prices. Time has now come full circulation, the major shareholders will be overweight? «Is it only in order to stabilize stock prices»



   According to my long period of study overseas combat, with some overseas combat cases of the holdings of major shareholders for an analysis.



   Major shareholders into financial investors and industries of investors. Financial investors in accordance with the pricing model for valuation of listed companies, if the stock price Chaodie or listed companies with good development potential, financial holdings of investors will be conducted in major overseas are some big investment banks and funds.



   For example, the world's largest mutual fund Fidelity Investments, the parent company of Fidelity Management and Research on Baidu's Class A shares to overweight, and Baidu held 12 percent of A shares, Baidu became A-shares on the market circulation of the largest institutions Investors. Fidelity holdings Baidu, to some extent, is based on overseas funds for the Chinese search engine market prospects for the judgement, and the Baidu search engine and PPC business model recognition. In addition, investors may be based on the industry of the future M & A and industrial collaboration related companies listed on stock holdings.



   For example, shares a grand start in early 2006 remains in the doldrums, and the famous telecom equipment supplier Cisco suddenly "coming out", a grand stock holdings, the shareholding ratio reached 9.7 percent, a grand second-largest shareholder. By this news, shares in the second day of the grand transactions in the near future even the high-opened, closed up 56 cents to close at 15.8 U.S. dollars, or 3.7 percent.



   SUNDAY major shareholder Huawei Technologies Co., Ltd. at a price of 0.64 Hong Kong dollar holdings 35 million SUN-DAY, involving a total amount of 22.4 million Hong Kong dollar. Huawei's holdings, its shareholding from PCCW to buy before the full 8.02 percent to 9.91 percent, the third largest shareholder by SUNDAY become the second largest shareholder.



   In addition, some acts are overweight false impression that some investors will make use of financial information of Lagao stock holdings, and the reduction of profit. Some industries also increased holdings of investors first, and then released merger news, when the stock price after Chaogao cash. So the speculation is false holdings, investors have a clear understanding.