[종목이슈] ‘Binary shock’ and asset’tuk’… Short selling panic cell Seohak ant choice

[서울=뉴스핌] Reporter Kim Joon-hee = The assets of domestic investors plunged due to the’binary shock’ from the US. As the stock price of EHang Holdings ADR, a Chinese manned drone company listed on the US NASDAQ, fell by a third on the 16th (local time), domestic investors’ holdings of binomial holdings fell more than 60% compared to the previous day.

However, the next day, the 17th (local time), the stock price rebounded again to 76%, attracting attention from both inside and outside the country as to what choices domestic investors made. Lee Hang Holdings is the top 10 overseas stocks in domestic investors’ shopping carts with anticipation of’Flying Car’. In the US stock market on this day, the stock price rose again thanks to the refutation of Lee Hang Holdings’ short selling report and high interest at home and abroad.

Daily stock price change of Binang Holdings. 2021.02.18 [사진=인베스팅닷컴 캡처]

According to Savero, the Securities Information Portal of the Korea Securities Depository on the 18th, the balance of the stock holdings of Lee Hang Holdings by domestic investors is $27.18 million as of the 17th. This is the day when the stock price plummeted with the release of a short selling report targeting Lee Hang Holdings. On the 16th, prior to the publication of the report, the storage amount was $55.34 million (about 607.7 billion won), which was ranked in the top 10 among overseas stocks held by domestic investors.

The plunge in the stock price of Lee Hang Holdings was initiated by a short selling report by Wolfpack Research, a US investment information company. Wolfpack Research expressed doubts about the identity of Shanghai Kunxiang Intelligent Technology Co., Ltd., a major customer of Lee Hang Holdings, claiming that the sales transaction between the two companies was fake. Also, after filming the production facility of Lee Hang Holdings, he raised questions about its production capacity.

Due to the shock of the report, the stock price of Lee Hang Holdings slipped to the 40 dollar level on the 16th (local time). It ended at $46.30, down 62.69% from its initial price starting at $123.50. The next day, the 17th (local time), the stock price rebounded and closed at $77.73, up 67.88% from the previous trading day. There is also an analysis that the rebuttal of Lee Hang Holdings that came before the start of the regular market and the high interest of investors had an effect.

Jeong Jin-soo, a researcher at Hyundai Motor Securities, said, “Before opening, the part that strongly refuted the short selling report seemed to work. Seeing that the stock price surged after the refutation was disclosed (in the form of CEO interview), it seems to be a sign of’somewhat believe’. “The short sale report also touched the suspicion about the business, but it didn’t particularly disparage the technology,” he said.

There is also an analysis that attracted attention from individuals also that the stock market had an excessive plunge in the short selling report attack amid the lack of additional momentum in the stock market. Lee Young-han, a researcher at Daishin Securities, commented, “In the short term, when there was no room to go up in the market anymore, it seems that the funds were focused on companies that could increase volatility.

Lee Hang Holdings, which had a high proportion of investors in Korea, is relieved when some stocks recover. However, concerns remain about investing in stocks as they are exposed to’China risk’ and’short selling attacks’. Researcher Jeong pointed out, “If you look at the past pattern, the stocks that have been attacked by short selling can also enter the second and third attacks.”

‘Chinese Starbucks’ Ruising Coffee, which was attacked by a short selling report earlier, was finally withdrawn from the New York Stock Exchange. The fact of fraudulent accounting that inflated sales was discovered. Also, electric car maker Nikola, who suffered from suspicion of fraud, has not recovered its previous share price after the attack on the short selling report.

Binang Holdings’ manned drone [사진=이항 홀딩스 홈페이지 캡처]

Meanwhile, Huazhi Hu, CEO Lee Hang Holdings, released a question-and-answer refutation before the start of the regular market on the 17th (local time). “The short sale report contains numerous errors, unproven statements, and misunderstandings of information based on crude research. “There is.”

Hu also responded to the suspicion of a’fake contract’ that it was “based on normal transactions.” Regarding the production facility controversy, “The Guangzhou manufacturing base area is 8750m2 (about 2,647 pyeong), and it has a production facility for autonomous aircraft (AAV).” I am receiving frequent visits to the facilities of the company,” he pleaded.

Lee Hang Holdings was the first Chinese drone company to be listed on NASDAQ in December 2019. It is known that the world’s first manned drone was successfully commercialized, and since last year, the model for firefighting and tourism has been unveiled, and sales have also started in earnest.

It is expected to be included in the space exploration-related ETF of ARK invest, a US asset management company that invests in disruptive innovative companies, and has nearly 6 times in two months this year.

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