The recent unusual stock price movement of Xiangcai Co., Ltd. has exposed the risk of the controlling shareholder's almost fully pledged equity. From July 16 to 20, the company's closing price deviation over three consecutive trading days exceeded 20%, triggering abnormal fluctuation standards. As of July 24, the range increase since July reached 13.28%, leading the listed brokerage sector. The market was driven by the dual positives of multiple-fold growth in first-half performance and the resumption of the merger and restructuring review of Dazhihui, but the company disclosed that the pledge ratio of controlling shareholder Xinhu Holdings and its concert parties is as high as 97.75%, and there remains great uncertainty in the implementation of the loss-making target's merger and restructuring. Xiangcai Co., Ltd. responded that operations are currently normal and declined relevant interviews.
Xiangcai Co LtdControlling shareholder's pledge ratio hits 97.75%, indicating high financial risk.
Shanghai DZH LtdMerger and restructuring review of Dazhihui resumed, but uncertainty remains.