Do shares have to be sold after the lifting of the ban?

The rise and fall of stocks is not determined by lifting the ban, and lifting the ban does not mean that major shareholders will immediately reduce their holdings. The rise and fall of stocks are determined by supply and demand, capital, performance, policies, news and other factors. Lifting the ban means that a large number of non-tradable shares can circulate, and the reduction needs to be announced in advance. If non-tradable shares account for more than 5% of the total share capital, it generally takes more than two years to reduce their holdings, and if non-tradable shares account for less than 5% of the total share capital, it generally takes one year to reduce their holdings.

The definition of banned shares is that restricted shares can be bought and sold freely in the secondary market after the commitment period of restricted sales. Generally speaking, from the date of lifting the ban, the lifted shares can be traded freely. If the restricted shares held by the enterprise have been transferred to the transferee by signing an agreement before the lifting of the ban, but the equity registration has not changed and is still held by the enterprise, the income obtained by the enterprise actually reduces the restricted shares.

According to the regulations of the China Securities Regulatory Commission, the sale of the original non-tradable shares of the company after the share reform shall meet the following requirements: (1) It shall not be listed, traded or transferred within 65,438+02 months from the date of implementation of the reform plan; (2) The original non-tradable shareholders who hold more than 5% of the total shares of the listed company sell the original non-tradable shares by listing on the stock exchange after the expiration of the period specified in the preceding paragraph, and the shares sold within 65,438+02 months and 24 months account for no more than 5% and 65,438+00% of the total shares of the company respectively. The non-tradable shares after obtaining the circulation right are called restricted shares because of the limitation of the above circulation period and proportion.

Generally speaking, the lifting of the ban on individual stocks will increase the stock supply, and the stock price will go down when the stock demand remains unchanged, but it needs to be combined with the fundamentals of the stock at the time of lifting the ban, its price and the market situation at that time.

For example, some stocks have oversold or broken through the region sideways, so once the lifting of the ban is lifted, it is very likely that shareholders will pull the boat. On the contrary, it is very likely that one of the underperforming stocks will lift the ban or fall at a high level. Of course, we should properly combine the market trend at that time and analyze the specific problems.

Generally speaking, for large state-owned enterprises, lifting the ban has little impact on non-Africa, because state-owned capital rarely reduces its holdings. As for the Growth Enterprise Market (GEM) and small and medium-sized board (SME board) that create the myth of getting rich, we need to be cautious, which will generally lead to a sharp decline.

This answer sheet is provided by Kangbo Finance. It focuses on interpreting hot financial events, popularizing financial knowledge, pursuing professionalism and interest, providing financial content that people can understand, and conveying financial value in vivid and diverse ways. I hope this answer is helpful to you.

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