Securities Times: Speculating on the stocks of companies like LeEco is tantamount to condoning crimes

In the past five trading days, LeTV's stock price has hit the daily limit three times. Its stock price has risen from the lowest point of 4.08 yuan on Monday to the highest point of 5.63 yuan on Friday, with an increase of 38%. Against the backdrop of a flat market, LeTV's stock price stands out.

If we temporarily forget the carefree life of the company's former chairman Jia Yueting after he abandoned his wife, forget the grievance of former chairman Sun Hongbin when his 10 billion investment was only exchanged for tears, forget the embarrassment of LeTV's transformation from a profitable white horse to a loss-making guinea pig, and only look at it from the realistic perspective of the changes in the numbers in investors' accounts, the soaring share price of LeTV can be said to be a win-win for everyone.

Is it that LeEco's fundamentals have changed or are about to change dramatically, supporting the stock price? Judging from Sun Hongbin's public "complaint" in March, there seems to be little room for imagination. Sun Hongbin said that there are only three options for LeEco: bankruptcy reorganization, selling assets to repay debts, and delisting. His pessimistic attitude is evident in his words. Recently, the new LeEco Smart Home has been continuously reported to raise funds. Some analysts say that Sun Hongbin may want to draw a clear line with LeEco as soon as possible.

The first and second largest shareholders treated it like a piece of trash, but small and medium-sized investors regarded it as a treasure. The reason for this huge contrast should be found in the bad investment habit of "speculating on new and poor stocks".

Data shows that the number of LeTV shareholders has increased from 180,000 before the resumption of trading to more than 300,000 now. In other words, when everyone knows that the company's prospects are bleak, there are still a large number of investors trying to take advantage of the situation. It is not ruled out that some investors want to use real money to praise the restructuring party, but after Sun Hongbin quit, they still flocked to it, which is purely moths to a flame. Paradoxically, the rise of LeTV this week may have really made a lot of people earn money.

Being able to make money is important, and increasing the possibility of making money is even more important. Most people agree that a clear investment environment and investment culture are essential elements to increase the certainty of investment returns. Creating such an environment and culture cannot be done by one person or in one moment. Only through long-term joint efforts by various entities, including regulators, can some progress be made. Looking back at the A-share market, the speed of progress in investment culture is indeed often regrettable. There are few problem companies that have not experienced hype. Even if delisting is a foregone conclusion, there are still people willing to try their luck.

Investors' "favor" has given listed companies the right to act willfully. Recently, Erkang Pharmaceutical received a prior notice of administrative punishment from the local Securities Regulatory Bureau. The company falsely increased its profits by 15.86 million yuan in 2015 and falsely increased its net profit by 232 million yuan in 2016. In response to these illegal and irregular behaviors, the Securities Regulatory Bureau ordered it to correct them, issued a warning, and imposed a fine of 600,000 yuan. The relevant responsible persons were also warned and fined. The huge amount of false profits and the maximum penalty were only a small ticket. Of course, there is a problem of mismatch between legal provisions and reality, but the fact that the company's main person in charge dared to commit crimes is probably related to the tolerance of investors.

Since February this year, Erkang Pharmaceutical has been hit by bad news: the annual report and the first quarterly report are expected to decline, and the pledged shares of shareholders have reached the liquidation line... But after the bad news, the stock price has steadily climbed. Even though it was recently announced that it was punished for inflating profits, the stock price performance is still tepid. Faced with a company that inflated profits, investors just laughed it off. Listing is a reward for companies, accompanied by strict supervision and investor scrutiny. If the cost of breaking the law is very low, investors are always forgetful and tolerant, and some listed companies naturally find it difficult to suppress the urge to steal. Investors should still be more harsh on listed companies and their major shareholders who have made mistakes. Only in this way can they break out of the vicious cycle of "future generations mourning future generations."

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.