After Huang Hongnian left, Chen Hui summoned his assistants, threw them two Standard Chartered Group board documents, and said: "You will publish the Standard Chartered Group's stock split statement now!"

Looking at the puzzled expressions of the assistants, Chen Hui said again: "There are two documents here, one is the first quarter performance expectation statement of Standard Chartered Group, and the other is the statement of Standard Chartered Group's stock split!"

"It's the weekend, and the stock market is still suspended, so you guys will release it immediately!"

Now Standard Chartered Bank has exchanged its own shares for the shares of its holding company (Standard Chartered Group), the current market value of Standard Chartered Group is 72 billion US dollars (558 billion Hong Kong dollars), the total share capital is 4.5 billion shares, and the stock price is 124 Hong Kong dollars per share.

A stock split is a share split, also known as a stock split. It refers to splitting a stock with a larger denomination into several stocks with a smaller denomination. The practice of stock splits generally only increases the total number of shares outstanding, does not change the intrinsic value of the shares, and does not have any impact on the company's capital structure, and the total amount of shareholders' equity remains unchanged.

After this split, the total share capital of Standard Chartered Group has doubled, and the total share capital has changed from 4.5 billion shares to 9 billion shares!

The original share price of HK$124 per share has also been repriced to HK$62 per share!

The total market capitalization of Standard Chartered Group's HK$558 billion (US$72 billion) remains unchanged, but the total share capital has doubled and the share price has shrunk by half!

After all, the share price of Standard Chartered Group has changed from HK$124 per share to HK$62 per share, and the stock price is very low, so that shareholders and investors can buy shares of Standard Chartered Group!

In addition, the number of shares of Standard Chartered Group has also doubled, so that the number of shares circulating in the market is larger.

Of course, the shareholding ratio of all shareholders remains the same, but the number has doubled!

The total share capital is 9 billion shares, and Chen Hui holds 51% of the shares of Standard Chartered Group, which is 4.59 billion shares!

Everyone respectfully said, "Yes, chairman!"

So they hurriedly left the chairman's office with two documents!

Now Standard Chartered Group can be described as a thriving situation, and if you don't agree with each other, you will make big news!

·

Soon after an hour or so, Standard Chartered Group once again announced an important matter!

Standard Chartered Group implemented the "1 split 2" per share to HK$62, and will officially implement this share split plan tomorrow!

At the same time, the first quarter expected financial statements were also announced!

At night, Standard Chartered shocked Southeast Asia again!

This will be another high-priced stock split in the Hong Kong stock market after the 2006 Manulife Financial split.

ATV Group Financial Network: After the split, the share price of Standard Chartered Group will be reduced from the level of 124 Hong Kong dollars to about 62 Hong Kong dollars, and the threshold for investment and purchase will be significantly reduced from 50,000 Hong Kong dollars to 10,000 Hong Kong dollars, and the liquidity of Standard Chartered Group's shares will be improved. However, stock splits are more of a "numbers game" and do not change the intrinsic value of listed companies. In the case of improved liquidity but no fundamental change in fundamentals, what will be the trend of Standard Chartered Group's share price after the split? By comparing the existing stock split cases in the Hong Kong stock market, investors may be enlightened.

"It was a rare experience to witness the stock split of Standard Chartered Group. Some investors said.

After 8 years, the capital market has changed. At the beginning, Manulife Financial was a financial enterprise, and now Standard Chartered Group is a giant financial group that has attracted much attention.

The reporter of "Daily Economic News" found that after the breakdown of Manulife Financial, it first experienced a decline in stock prices, and then went up sharply; after the split of Standard Chartered Group, can it replicate the trend of Manulife Financial?

The threshold for investors to buy one lot has been reduced by half accordingly!

In fact, before Standard Chartered Group, the 2006 Manulife Financial stock split was also a high-priced stock split event that attracted much attention in the Hong Kong stock market. It is a financial services company from Canada, and on May 12, 2006, it hit an all-time high of HK$580.

Moreover, the Internet giant Baidu (216.04, 0.99, 0.46%) went public in the United States in 2010. On April 29, 2010, Baidu's stock price rose to $718 under the favorable performance situation, so a 1-for-10 stock split was implemented.

There is also Apple (221.3, -1.80, -0.81%), which reached $88.99 per share as early as 2005 and carried out a 1-for-2 stock split. In February 2014, after a lapse of nine years, Apple planned to split its stock again, and the current stock price is about $525, which will be officially split on June 2, falling to about $75 per share.

Stock splits are not uncommon.

Gui Jiaming, chief analyst of HSBC Group's securities company, said that on the one hand, the stock split can lower the investment threshold, make trading more convenient, and on the other hand, enhance liquidity.

It is a common practice to split shares when the stock price is too high and affects its liquidity. In addition to lowering the threshold, it is also easy to make transactions more convenient, that is, more conducive to transactions. This is actually easy to attract the attention of investors. If you have a share of 100 yuan or 200 yuan, it is not very convenient to trade. In the case of stock splits, trading activity increases, which is also beneficial to increase the company's valuation.

Many companies that implement stock splits can indeed attract the favor and favor of investors after the stock split, and there is a considerable wave of rising market.

For example, Baidu's stock price was more than $70 after the stock split, and after a period of consolidation, it entered the upward channel again, and the stock price reached $165 in July 2011, a cumulative increase of more than 130%. Another example is Apple, which split its first stock in 2005 and doubled in less than a year to more than $80 per share.

Analyst Drake believes that Standard Chartered Group's performance in the first quarter of this year will be very good, and the expectation of a rise in stock prices after the stock split is also relatively high.

He said: Now the whole market environment is very good, and the stock price of Standard Chartered Group itself is in the rising stage, this kind of stock split may be easier to attract attention, if the environment is not good, it is difficult to say. Second, it still depends on the performance of Standard Chartered Group itself, which should not be a big problem. In the recent stage, its performance growth is still quite large, so it seems that if the stock split, more than 124 yuan becomes 62 yuan, the probability of relative rise is relatively large.

When the stock price is too high, a stock split may be necessary. Correspondingly, there are times when it is necessary to merge shares. For example, in April 2012, 21st Century Outlets (0.68, 0.00, 0.00%) announced a 3:1 merger of shares because its stock price had been below $1 for a long time.

When the stock price is too low, in order to avoid delisting, etc., the company will consider a merger, and generally the performance of the merger company is not very optimistic at that time.

Some companies also have rules that if the stock price continues to be lower than the par value, such as the United States, if the stock price is less than 1 yuan for 3 consecutive months, it can be forcibly delisted. If the stock price is only 9 cents, the combination of two shares will exceed 1 yuan, which is also a way to restore the liquidity of the stock. Like many small businesses, when the stock price is very low, two shares are combined into one share, and they are generally companies with poor performance.

Many netizens of the Asian Economic Voice asked: After the stock split, will the shares of Standard Chartered Group cause a better upward trend?

Ross, a well-known finance professor: Stock splits will have a certain stimulating effect, making trading easier, and indeed trading is frequent. However, we should not simply look at this one factor, but also look at the overall market situation and its performance support.

And Standard Chartered Group has previously annexed DBS Bank, and now it has annexed UOB!

Singapore Lianhe Zaobao: At present, it is only a market value of 72 billion US dollars, which is obviously undervalued too much, even if the Standard Chartered Group's 1 share is split into 10 shares this time, the stock price of Standard Chartered Group will continue to skyrocket!

A Hong Kong stock investor said, "Now after the stock split, retail investors can finally consider buying, so I still hope that Standard Chartered Group can rise more, so that small and medium-sized investors can also share the growth of Standard Chartered Group." ”

Many investors wondered and asked: "Can the stock split make the Standard Chartered stock price rise again?"

"After the breakdown of Standard Chartered Group, the entry fee will be reduced, which can attract more investors to enter the market, which I believe will help stimulate the stock price in the short term. "However, it should be noted that the share subdivision has no impact on the company's fundamentals, so in the medium and long term, it depends on the company's fundamentals." ”

At the same time, Cen Zhiyong also raised his own concerns about Standard Chartered Group's stock split strategy: "Actually, I am a little worried about the split, because if the company's fundamentals are good and the prospects are promising, it can attract investors, especially institutional investors, without splitting." However, if you want to rely on subdivisions to attract small investors, this could mean that the company's growth prospects may slow down. ”

Anpheis, a well-known researcher at the Bank of America, said: We should take advantage of the time when the Standard Chartered Group splits its shares to buy more shares of the Standard Chartered Group! There are fewer and fewer stocks circulating in the market, but this time we can buy more shares and wait for the stock price of the Standard Chartered Group to rise!

"Standard Chartered has just acquired UOB, what are we waiting for? We don't need to wait, we don't need to think, just buy Standard Chartered shares at the opening of the market on Monday!"

"Standard Chartered Group's market value will double again in the next year!"

"Standard Chartered's performance is about to pick up!"

····

From the evening to the next morning, the market was full of news about the share price of Lido Standard Chartered Group!

It's just a bombardment!

·······

On Monday morning, when the Asian stock market opened, Standard Chartered's share price soared by more than 10% in less than 20 minutes!

Shocked the Asian stock market again!!

Standard Chartered's share price was able to explode on the same day after the stock split!

The whole market is just crazy!!

Maybe the shareholders and investment institutions are crazy!

Standard Chartered's share price has risen from HK$62 per share to HK$69 per share!

In just 20 minutes, Standard Chartered's market capitalization rose from US$72 billion (HK$558 billion) to US$80 billion (HK$620 billion!!

The market capitalization increased by $8 billion in 20 minutes!!

Shareholders who buy Standard Chartered shares have made a lot of money!

Tasted the sweetness!

Stockholders and investment institutions are like taking stimulants!