AI "dismantles" the major shareholder families of 9 listed companies? Divorces are frequent under the skyrocketing market value. Divorce may be false, or reduction of holdings may be true

**Source: **Financial Association

Reporter Wu Yuqi

Image source: Generated by Unbounded Layout AI tool

Since the beginning of this year, the AI sector has undoubtedly become the brightest star in the entire market. Correspondingly, the stock prices of related companies have also risen. In this case, shareholders of listed companies have also begun to release intensive plans to reduce their shareholdings. According to incomplete statistics by reporters from the Financial Associated Press, a total of 133 AI concept stocks have disclosed their shareholding reduction plans this year.

In addition to the reduction of shareholders' holdings, the popularity of AI has also triggered a wave of divorces among the actual controllers of listed companies. According to statistics, just over half of this year, AI has "dismantled" Fubon, 360, Red Avenue New Materials, Kexin Technology, Tiandi Digital, The family of 9 major shareholders of Tonghe Technology, Huitian New Materials, Saiteng, and Zhuoshengwei.

It is worth noting that the above-mentioned divorce announcement also has the man "leaving the house without leaving the house" and the woman holding stocks. This can't help but make stockholders speculate-the divorce is fake and the reduction of holdings is real.

Shareholders also complained: The "side effect" of the AI fire is divorce?

The tide of holding reduction behind AI making wealth, A-share divorce "curve to save the country"

Since ChatGPT became a hit at the beginning of the year, AI has set off a wave of investment boom, and funds from all walks of life have poured in, and the stock prices of related domestic concept stocks have been rising steadily. As of June 20 (the high point of the year), Inspur Information has increased by 202.04%, and its stock price has doubled. The share price of Kunlun Wanwei also rose from 14.62 yuan to 62.93 yuan, an increase of 336.17%. The highest share price during the year reached 70.66 yuan. In addition, Shengtian Network and Shenzhou Taiyue both increased by more than 2 times during the year.

Looking at the world, the market value of many artificial intelligence companies is rising steadily. As of the close of U.S. stocks on June 23, the stock price of AI giant Nvidia has risen 188.90% so far this year, and its market value has exceeded $1 trillion. In addition, BigBear.ai has risen 247.18% since the beginning of this year, while Oracle and Google have risen 46.29% and 38.66% respectively.

Facing the soaring market value, a large number of major shareholders of AI stocks began to choose to reduce their holdings.

Just last week, longtime Nvidia board member Harvey Jones sold nearly 120,000 Nvidia shares for $48.3 million. This month, it has cashed out more than 76 million US dollars. Coincidentally, Tench Coxe, a member of Nvidia's board of directors, also sold 50,000 Nvidia shares at an average price of $422.15, making a profit of more than $21 million.

Larry Ellison, the founder of Oracle, also chose to cash out at a high point. Recently, he exercised an option that is about to expire and purchased 5.25 million shares at a price of $30.11 per share. Meanwhile, Ellison sold the same number of Oracle shares at an average price of $121.98 per share, for a total of $640 million.

Compared with the simple and rude reduction of holdings of overseas AI listed companies, A shares are "curve to save the country".

According to the statistics of the reporter, since the beginning of this year, 9 AI concept stocks in the A-share market have disclosed the news of the divorce of their major shareholders, including Fubon, 360, Red Avenue New Materials, Kexin Technology, Tiandi Digital, Tonghe Technology, Huitian New Materials, Saiteng, Zhuo Shengwei, and some of them caused a great disturbance in the public opinion field because of the "sky-high divorce case" that attracted public attention. It is worth noting that the timing of the divorce of the above-mentioned shareholders is basically when the company’s stock price is skyrocketing.

For example, Zhou Hongyi, the actual controller of 360, divided 446.5852 million shares (about 6.25% of the company’s total share capital) into the name of his ex-wife Hu Huan. At the time of divorce (April 4), the closing price was 20.08 yuan, which was the highest in 360 years. point.

In the divorce case of Tongcheng New Materials, the man directly "leaves the house", and the stocks with a market value of more than 14 billion yuan are owned by the woman.

Recently, Tang Zhuang, the actual controller of Zhuosheng Micro, transferred 32.7575 million shares (about 6.14% of the company's total share capital) to his ex-wife Yi Gebing. rise.

Shareholders complained one after another: The "side effect" brought about by the AI wave is divorce?

In addition, before the Dragon Boat Festival, there is also Kunlun Wanwei, which led to the crash of the AI sector. Its announcement stated that its second largest shareholder and founder Zhou Yahui’s ex-wife Li Qiong plans to reduce its shareholding by no more than 3%. At the same time, in order to support the company’s AIGC business For long-term development, more than 50% of the after-tax income from the shareholding reduction will be lent to the company.

It is understood that Li Qiong and Zhou Yahui, the founder of Kunlun Wanwei, divorced in 2016. At that time, Li Qiong obtained 278 million shares of Kunlun Wanwei.

Some people in the market jokingly said, "It is recommended to add 'divorce concept stocks' to the market-watching software."

Wu Gaobin, founding vice-chairman and secretary-general of the Metaverse Working Committee of the Chinese People's Association for Democratic People's Association, told reporters, "Divorce is a private matter in personal life, but the divorce of the major shareholder of an AI company may have an impact on the company's stock price and business development. Some Divorce events may lead to instability in the company's equity and business development direction, which may cause market concerns and investor uneasiness, which in turn may lead to stock price volatility."

**How to deal with market value growth? **

A market participant questioned the market’s conjecture of “fake divorce and real reduction of holdings”, “This matter cannot be simply blamed on the market. If the relationship has actually broken down, why didn’t you make a decision to divorce before? Why did you choose to divorce when the stock price soared? At this moment, it is incomprehensible to pay billions in separation costs."

Zhang Zhuran, an independent economic researcher, said in an interview with a reporter from the Financial Associated Press, "If you choose to divorce because of personal emotional problems, then there is nothing wrong with it. After all, emotional problems and marriage choices are personal matters, and outsiders don't need to say Nonsense. However, the coincidence of the timing of the divorce has indeed attracted the attention of investors, after all, there may be considerations of reduction and profit.”

From the above analysis, it can be seen that whether it is A shares or overseas, the sharp rise in stock prices is generally accompanied by a reduction in holdings. In this regard, how should listed companies respond to market value growth?

Market participants generally believe that the growth of market value depends on fundamentals, rather than illusory outlets and speculation concepts. If the industry bubble bursts, only a few companies with core technologies can survive.

Zhang Zhuran pointed out, "The basis for a listed company to do a good job in market value management is first of all to do a good job in its own operation and management, and to strengthen the construction of the 'fundamentals' of listed companies. A concrete manifestation of the heat."

Wu Gaobin holds the same opinion. He believes that market value growth requires the support of the company's internal strength, including high-quality business models, strong technological innovation capabilities, efficient management teams, and sound investment strategies. Excessive focus on increasing market capitalization may cause companies to focus too much on short-term performance and neglect investment in long-term development, thereby reducing future competitiveness and market capitalization. Therefore, the company should adopt a sound business strategy and comprehensively consider various factors to avoid financial and business risks.

A market researcher also admitted to the reporter, "Although there is no conclusive evidence whether the actual controller is a fake divorce, in the A-share market, 'fake divorce, real shareholding reduction' has become a stress judgment, and shareholders are forced to become major shareholders to divorce. It is the 'following the ceremony' at that time."

We can also get a glimpse from the performance of the secondary market. After the announcement of divorce or shareholding reduction, the stock prices of "divorce concept stocks" cannot stand the test. For example, the stock price increase of 360 stopped at the highest point on April 4, and the announcement of Kunlun Wanwei’s ex-wife’s shareholding reduction also led to the collapse of many AI concept stocks. This aspect reminds investors that the current domestic AI concept stocks are in a big bubble, and the announcements of shareholding reduction have been issued intensively, which also shows that ** shareholders themselves believe that the stock price is overvalued, and the right way is to stay away from it. **

Regarding the response to the increase in market value, Zhang Zhuran asked rhetorically, "If there is an increase in (market value) and we respond with 'divorce' or 'reduction of shareholding', it can only prove that the relevant stakeholders themselves are not optimistic about the company's prospects. What about long-term confidence in the market?"

Wu Gaobin also said that in response to market value growth, it is necessary to abide by relevant regulations and market rules, regularly disclose financial reports and business plans, and establish strict monitoring mechanisms and risk management systems in terms of internal control and auditing to ensure sustainable development of the company and a steady increase in market capitalization. In addition, when non-operating factors such as the divorce of major shareholders have an impact on the market value, the company needs to actively take countermeasures to reduce risks by strengthening objection management and improving corporate governance to stabilize market sentiment and investor confidence.

The above-mentioned market researcher said frankly that in terms of the capital market, as a place for resource allocation, it should also respond rationally to market value growth and hot spots. At present, some artificial intelligence concept stocks in the A-share market have a price-earnings ratio as high as 100 or 1000 times. Even if the domestic artificial intelligence sector develops rapidly, it is less likely to fill such a huge valuation bubble, which may lead to a mismatch of resources.

There is also a view that the increase or decrease of holdings is a voluntary behavior of shareholders, and under heavy restrictions, divorce and other deformations often occur.

**Public funds entered the market significantly in the first quarter, and will also reduce their positions in the second quarter? **

At the same time as the rise of artificial intelligence, it also attracts the inflow of institutions and funds, and public funds are no exception.

According to Wind data, ranked by the total market value of holdings, the top ten most heavily held stocks of public offering funds in the first quarter of this year were Kweichow Moutai, Ningde Times, Wuliangye, Luzhou Laojiao, Tencent Holdings, WuXi AppTec, Mindray Medical, Shanxi Fenjiu, Jinshan Office and solar power.

Among them, Jinshan Office has entered the top ten major holdings of public offering funds for the first time in the past three years, with a total holding of 67.0885 million shares, becoming the "miniature" of public offering funds' AI layout. For example, funds such as Manulife Transformation Opportunity A, Bosera Huixing Return One-Year Hold, E Fund China Securities Science and Technology Innovation and Entrepreneurship 50ETF, and Fuguo New Energy A were all newly bought Jinshan Office in the first quarter.

In addition, among the top 100 public offerings in the first quarter, almost all technology stocks rose in rankings, such as Kunlun Wanwei Hikvision, China Micro, Hang Seng Electronics, HKUST Xunfei, ZTE, Cambrian Ji et al.

Take Kunlun Wanwei as an example. At the end of 2022, Kunlun Wanwei will only be held by 12 index funds, with 18.21 million shares held. By the end of the first quarter of this year, the number of public funds holding shares in Kunlun Wanwei surged to 136, and the number of shares held reached 64.2268 million shares, an increase of 253% from the end of last year.

Choice data shows that AI concept companies are mainly distributed in TMT industries such as computers, media (including games), communications, and electronics. As of the end of the first quarter, there were 626 A-share listed companies in these four major industries with public offering funds holding shares. The total market value of these four major industries held by funds was close to 600 billion yuan. Among them, the electronics and computer industries were held by funds. The market value exceeds 200 billion yuan.

Near the end of the second quarter, the new operation trend of fund managers has also become a hot spot in the market. Should they continue to hold AI or escape the top? According to a sell-side source, some fund managers have also begun to reduce their positions in AI, choosing to settle for peace of mind. "AI rose too fast in the early stage. With the rise of market value, fund managers may worry about shocks in related sectors after the wind blows, so they will choose to lighten their positions at the right time to ensure profits."

Some fund managers have already taken a cautious attitude towards the AI sector. The TMT sector still needs to go through a period of shock and digestion process in the early stage to further reduce transaction congestion and market over-hype. The process may involve stock price corrections and profit adjustments and calming market sentiment. "We will allocate in moderation, but not heavy positions."

In addition, the market also speculates that some funds with style drift may take the opportunity to sell AI.