Evergrande Motors (00708. HK), which had never seen a new trend for a long time, suddenly saw a sharp rise half an hour after the opening of the Hong Kong stock market on May 17. At one time, it soared by more than 70%. However, near 11:00, Evergrande Auto issued a temporary suspension notice at the Hong Kong Stock Exchange.
According to the suspension notice, Evergrande Auto has temporarily suspended trading since 10:56 this morning. Before the suspension, the share price rose 53.23% to HK $0.38, and the current total market capitalization of the company is about HK $4.121 billion.
For the suspension of Evergrande Auto, some market participants believed that there was "speculation suspicion", which was quite similar to the five consecutive trading days of Faraday Future (NASDAQ: FFIE).
As of May 16 local time in the United States, Faraday's future share price closed at $1.65, up 134%, and the company's latest market value was about $70.41 million. The stock price of Faraday has risen 3964% in the future.
Titanium Media APP noted that Faraday was also suspended for half an hour in the future due to abnormal fluctuations in the range of rise and fall in the intraday on May 16 local time, and then resumed trading.
For Faraday's future soaring share price, some insiders believe that this is closely related to a video statement issued by Jia Yueting, the future founder of Faraday, on May 7. In the video, Jia Yueting expressed his determination to work closely with the company's management team and promised to take all necessary measures to ensure that the company could maintain its compliant listing status.
It is reported that in April this year, Faraday Future announced that the company received a letter from NASDAQ on April 24, because the closing price of the stock was less than 0.1 US dollars for 10 consecutive trading days, which was not in line with the listing regulations of NASDAQ, so the staff of NASDAQ decided to delist Faraday's future stock from the NASDAQ market. As far as the future stock price performance of Faraday is concerned, the company has got rid of the delisting risk
In addition, Jia Yueting also announced in the above video statement that he would start the commercial operation of personal IP, aiming to raise funds in this way to support the company's operation and automobile manufacturing business.
In this regard, some analysts believe that the future rise of Faraday's share price is related to speculative speculation. Some funds will use policy changes, market rumors and other factors to make short-term speculation. Investors should be cautious to avoid blindly following the trend.
However, some people in the industry believe that Faraday's recent surge in the future may be related to the US policy of imposing 100% tariffs on Chinese electric vehicles. In recent years, the competitiveness of China's electric vehicles is strong, and the export continues to grow at a high speed, which frightens some overseas countries. However, the above policies make investors realize the potential of Faraday in the future.
Jia Yueting also said in the above video statement that more and more people are beginning to pay attention to the uniqueness and many unique values of Faraday as a bridge between China and the US auto industry in the future. On the premise of complying with the relevant laws and regulations of the United States, Faraday can help Chinese auto companies and supply chains quickly enter the US market in the future, greatly reducing trial and error and time costs, He hopes to cooperate with Chinese automobile enterprises, and he and his personal IP are making continuous efforts to this end.
Jia Yueting, screenshot of video statement from May 7
Then why do people in the market think that the rising share price of Evergrande is related to the future of Faraday?
On the one hand, the sharp rise of Evergrande Auto's share price was accidental, and there was no forecast before, and there is no news outflow from the market at present. An investor who did not want to be named said to Titanium Media APP, "Maybe it is a big move. After all, Evergrande Property (06666. HK) has not suspended its trading and (stock price) is still rising."
On the other hand, it is because Evergrande and Faraday really have a lot of connections in the future.
As early as June 2018, China Evergrande (03333. HK) acquired 100% of the shares of Hong Kong Shiying Company for HK $6.746 billion, indirectly becoming the largest shareholder behind Faraday in the future. In addition, the two sides also established a joint venture company to focus on the research, development and production of new energy vehicles.
According to Tianyan, Evergrande Faraday Future Auto Technology (Beijing) Co., Ltd. was established in October 2018, with Evergrande Auto as the 100% actual controller and Liu Hao as the legal person. However, the company was cancelled after only one year (December 2019).
It is reported that China Evergrande once had a dispute with Jia Yueting over the future control of Faraday, and the two sides once went to court. After many times of coordination, China Evergrande finally reached a settlement with Faraday in the future. The former gave up the fight for control of the latter and no longer invested in the future of Faraday.
Since then, Faraday has gone through multiple financing in the future. As of July 2021, China Evergrande still holds 20% of Faraday's future shares. After that, Faraday disclosed the relevant equity changes in the future. China Evergrande also left a pile of bad debts due to its large acquisitions and cross-border transactions in the early years, and is still suspended. (This article was first published on titanium media APP by the author | Chen Weina)
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