The negative impact of manipulation of stock prices by market makers on the securities market has been increasingly recognized by investors. For investors, it may be important to use practical actions to make the "market makers" lose their important soil for survival, that is, not chasing after the rise or blindly following the market. To achieve this, of course, it is necessary to recognize the essence of the "Zhuang" behavior and understand some market characteristics exhibited by "Zhuang stocks".

One of the characteristics: Stock price skyrocketing and plummeting

Stock prices manipulated by market makers are prone to this phenomenon, because in a relatively relaxed market environment, the basic process of market manipulation is to first desperately push up the stock price or contact listed companies to create the illusion of low stock prices through means such as stock dividends; Starting to sell after obtaining sufficient space and taking advantage of investors' opportunities for rebound or ex rights to continuously sell to achieve their goal of making huge profits, the result is an inevitable long-term decline in stock prices. This situation is also related to the imperfect dividend distribution policies of current listed companies. It is objectively impossible for market makers to rely on cash dividends to obtain returns and reduce risks, and earning price differentials in the secondary market has become the only option.

Feature 2: Trading volume fluctuates between large and small

Market makers need to have trading volume to cooperate in both building and selling positions. Some market makers may adopt the method of building positions by increasing volume at the bottom, while the distribution of stocks by market makers may create a false impression of volume breakthrough in order to attract followers to intervene and achieve the goal of selling. In addition, market makers often transfer chips or attract investors' attention through knocking or inversion. Either way, it will lead to a sharp increase in trading volume, and these actions clearly violate relevant legal provisions. At the same time, due to the fact that the chips of Zhuang stocks are mainly concentrated in the hands of a few people, their daily trading volume will show an extremely shrinking situation, which greatly reduces the liquidity of the stocks.

Feature Three: Abnormal Trading Behavior Performance

The common occurrence of stock market trends is that the stock price inexplicably opens lower or higher, pulls up the closing price at the end of the trading session, or occasionally experiences significant buy or sell orders, indicating obvious signs of artificial manipulation. During the trading session, there were occasional strong unilateral gains followed by sudden sharp declines, with significant fluctuations. This phenomenon is particularly evident at the end of the market, indicating that the market makers have a very high degree of control over the market.

Feature 4: Significant fluctuations in business performance

The market performance of most Zhuang stocks is closely related to the company's fundamentals. During the process of rising stock prices, the company's performance will significantly improve. It seems that the increase in stock prices is a reflection of the company's performance growth, which is highly confusing. For example, the continuous doubling of the stock price of Yin Guangxia corresponds to a doubling of performance, and whether the company's performance is abnormally improved or deteriorated due to abnormal factors is an abnormal phenomenon, which will cause damage to the interests of shareholders. At the same time, many Zhuang stocks experience a significant decline in performance after their stock prices fall to a certain stage, and the profit data of such listed companies is highly questionable.

Feature 5: Significant changes in the number of shareholders

According to the number of shareholders disclosed in the annual or mid year reports of listed companies, it can be seen that the stock price of Zhuanggu has completed a process from low to high, and then from high to low. In fact, it is also a process of increasing the number of shareholders from many to few, and then from few to many. Zhuang shares are usually represented on the shareholder list as multiple institutional or individual shareholders holding a similar number of social public shares. Because in order to achieve the goal of controlling the market while avoiding the situation where an institution or individual holds more than 5% of the total share capital, the market maker must use multiple non related accounts to buy at the same time, which also adds difficulty to effective market supervision.

Feature 6: Going against the market trend

Generally, stock trends fluctuate in the same direction as the overall market, but Zhuang stocks often perform differently in this regard. In the stage of building a warehouse, it is easier to quickly obtain chips by pulling up against the market; In the shock stage, using the chips collected in advance, ignoring the trend of the overall market, to suppress the stock price, causing a technical breakthrough, causing market panic, and further increasing the concentration of holding funds; During the upward phase, due to the scarcity of floating funds outside the market, it is effortless to rise against the trend. During this period, illegal price manipulation techniques such as collusion are used to artificially inflate the stock price, making it easy to manipulate the stock price. Moreover, the sudden rise of a counter market force can easily attract market attention, cultivate a group of followers, and lay the groundwork for smooth future shipments; At the stage of shipment, taking advantage of the stabilization and recovery of the overall trend, seizing the public's no longer cautious mentality, and taking advantage of the situation to significantly fluctuate shipments, until the goods reach a certain level, the tactic of repeatedly suppressing clearance is staged, until the stock price returns from where it came from.

Feature 7: Unusual stock price response to news

Under a fair, open, and just information disclosure system, market stock prices will effectively reflect the situation of news. Positive news is conducive to stock price increases, and vice versa. However, in the case of Zhuang stocks, market makers often collaborate with listed companies, and they are aware of any news that the listed companies may have beforehand. Even deliberately creating so-called negative and positive news in private, in order to achieve the goal of the banker not revealing it to others. For example, in order to complete the position building as soon as possible, the market maker artificially spreads unfavorable news and uses vague announcements to ultimately shake investors' confidence in their holdings. For example, after the stock price skyrocketed, the previously unrecognized positive rumors were finally realized, but the stock price experienced stagflation due to the positive news and ultimately plummeted.

Feature 8: Pursuing Popular Concepts

There was once a concept hype trend in the market, where some believed that creating concepts was easier than improving the performance of listed companies and had greater room for imagination. The popular concepts of Hong Kong's return to China in the early stages of the stock market include the internet concept, cable network concept, as well as recent concepts such as China's accession to the WTO and the bid for the Olympics. Of course, there are indeed companies that have benefited from these concepts, but they are often taken advantage of by market makers to fish in troubled waters.

Feature 9: Preference for small cap stocks

Looking back at the history of traditional Chinese stocks, when traditional Chinese stocks were rampant, they were mostly small cap stocks. The reasons for this could be attributed to the following factors: firstly, small cap stocks have a small market value and do not require high capital. The duration of running a business can be relatively short, and the degree of risk control is high; Secondly, small cap stocks have little impact on the overall market index and are not easily noticed by regulatory authorities; Thirdly, large companies are relatively standardized, while small companies are easier to cooperate and support; Fourthly, only small companies have the opportunity to make rapid improvements. Even if it is falsely packaged, through illegal means such as related party transactions, a small amount of trickery can be used to sneak into Chen Cang.