Research On The Strategy Of China Concept Stocks To Deal With The Short Selling Crisis

Since 2010,short-selling of Chinese concept stock companies has repeatedly appeared,including some companies that have developed well in China,and some short-selling institutions such as Muddy Waters,Citron Research,and Anonymous Individuals have frequently succeeded in doing.As a result,Chinese concept stock companies suffered heavy losses,and the trust crisis of China concept stocks has greatly affected the image of Chinese companies.Recently,after Luckin Coffee was short-selling,it exploded and falsified,and a new round of China concept stock crisis has begun.One aspect of this is reflected in the internal corporate governance of domestic enterprises,and on the other hand,it is also due to the lack of response to short-selling incidents by a large number of companies.Caused by the measures.This article uses a combination of statistical analysis methods and case analysis methods,summarizes the short-selling crisis of China concept stocks that has occurred since 2010,explains the basic background,and then analyzes 14 Chinese concept stock companies that have been shorted by Muddy Waters,focusing on statistics and summary are made on the characteristics of short-selling companies and their anti-short-selling practices.At the same time,in order to discuss the short-selling event in depth,the article selected the case of New Oriental Group being shorted by the Muddy Water Company for research,and straightened out the development history of the short-selling event through chronological order,and analyzed the questioned issues in the Muddy Water short-selling report and New Oriental’s The analysis of counterattack strategy found that New Oriental’s success in short selling was due to the good fundamentals of the company and the effective countermeasures it took after the short selling,which gave investors convincing answers in a timely manner.Then,using the event research method,it was found that in the short term,New Oriental’s counterattack measures made the stock price rise.Then,after analyzing the accounting indicators before and after the short-selling event of New Oriental Group,it was found that the counterattack measures had stabilized the development of New Oriental in the long run.Drawing on the successful experience of New Oriental and combining the theory of crisis management,the author puts forward a strategic framework for China concept stocks to deal with the short-selling crisis,and puts forward opinions on China concept stocks in different periods.The reason why Muddy Waters short-selling New Oriental is selected as a case in this article is because of the high reputation of Muddy Waters.It used to short Dongfang Paper,Focus Media and other well-known companies,and was known by everyone with a high success rate.On the other hand,The reason is that New Oriental is one of the few companies that has successfully responded to short selling and has a good current development trend.It is hoped that through the above analysis,it can provide reference and practical suggestions for many overseas listed Chinese concept stock companies when facing short selling.