The Research Of The Effect On Stock Price Of The Holding-shares’ Reduction Of The Key Stockholders In Chinese Gem

According to the research of the effect on stock price of the reductionof the key stockholders, we shall have the following conclusions: Sharesdeduction of key shareholders have a negative impact on share price. Themarket factor, whether the executives themselves sell shares, the reductionways, the price-earnings ratio, the reduction amount and percentagesignificantly affect stock price; the market factor is the most importantfactor in short-term; the founder and core technical team did not sell theirshares so much, and the actual total reduction amount is not so large.Finally, the policy-makers should optimize the management system ofGEM, pay great efforts on information disclosure and protect the interests ofmedium and small investors. I suggest the mechanism of the announcementof reduction in7-15days before they do it; we shall encourage the founderand core technical staff to extend lock-up period to enhance the value ofstock; we shall improve the rules of reduction of the GEM restricted shares.