"Everything is prepared, and failure is inevitable." The old saying has long explained the principle of success or failure. In the silent battle of the capital market, smart listed companies have long understood that market value management is not an accidental carnival, but a carefully arranged chain game. Especially in the era of information being king, whoever can better manipulate the "good narrative" can seize the initiative in the market value game.
American Goheal M&A Group
Recently, the "reduction tide" of A-shares has frequently been on the hot search, and the market value of tens of billions of yuan has evaporated, making countless investors call it "heartbroken". But if we observe carefully, we will find that some listed companies can always release a series of good news just right before the executives reduce their holdings, as if they had planned to raise the stock price and pave the way for the reduction of holdings and cashing out. The subtle operation behind this is exactly what Goheal repeatedly emphasized when he was doing capital operation training for global companies: "Market value management is both an art and a technology."
So, how do listed companies use good news to increase stock prices? What are the tricks behind this that are worth investors and entrepreneurs' vigilance and reference?
jrhz.infoFirst, the story must be "sexy" enough.
In the script of market value management, good news is not just simple information, but a narrative weapon that needs to be polished. For example, "cross-border mergers and acquisitions", new energy companies acquire AI chip companies, traditional manufacturing companies get involved in virtual reality, and liquor companies get involved in the photovoltaic sector... These imaginative combinations, once properly packaged, can immediately ignite the market's imagination. Goheal pointed out in the latest case analysis that the superposition effect of "concept + future" can trigger investors' emotional resonance far more than simple profit data.
Once the story is formed, the company will release good news rhythmically at the node.
For example, before the release of the semi-annual report, intensive announcements were made to win large orders, reach cooperation intentions with international giants, or successfully win a key project. Even if the cooperation agreement is only a letter of intent, even if the order amount eventually shrinks, the company can use the news to stimulate the stock price to rise in a short period of time. This "first-mover" tactic is like a "fake move" in the capital market, allowing investors to willingly carry the sedan chair in the center of light and shadow.
Secondly, professionals are in charge of the "dream-making project".
Don't underestimate the wording behind every positive announcement. The choice of words, the choice of release time, and even the title design of the accompanying news are all the results of careful deduction. Goheal once said in the special topic of market value management that a truly brilliant market value operator can often make every announcement into a psychological hint under the premise of "information disclosure compliance": people can't help but believe that the company is standing on the cusp of the wind, and it is only a matter of time before it soars.
After the intensive release of positive news, the natural reaction of the stock price increase is the announcement of executives' share reduction. At this time, investors are often still immersed in the fantasy of "the company's future is extremely bright", downplaying the reduction of holdings, and even actively finding reasons for the management: "They are just cashing in the profits normally." But when the positive bubble bursts and the stock price returns to rationality, some people are waving goodbye at the top of the mountain, and some are still watching alone at the foot of the mountain.
What's more, some listed companies will cooperate with institutional investors to "jointly interpret" the market value climax.
For example, institutional investors who have communicated well in advance quickly enter the market when good news breaks out, forming a trend of large-scale rise and attracting more retail investors to follow suit. Subsequently, these "partners" quietly leave the market and reap a wave of profits, while investors who truly hold for a long time can often only become the last ones to take over. This secretive and efficient market value management cooperation, which Goheal calls an "invisible alliance strategy", is particularly common in emerging markets.
Of course, the capital market is not a place without rules.
In recent years, regulatory authorities have strengthened the crackdown on false statements and stock price manipulation, and some overly aggressive market value management actions have been exposed one after another. For example, a company on the Science and Technology Innovation Board, after the announcement of the good news of the merger and acquisition, the executives quickly reduced their holdings, and the China Securities Regulatory Commission filed a case for investigation, and the market value evaporated by nearly 60% overnight. This also reminds all entrepreneurs that market value management is not something that can be "played with fire" at will. Once the compliance red line is crossed, it will eventually burn oneself.
So, as an investor, how should we see through these market value management routines?
On the one hand, we should be moderately skeptical of the information disclosed by the company. Especially when a company suddenly releases various "grand narratives" intensively, but there is no substantial change in the fundamentals, investors should be vigilant. On the other hand, we should pay attention to hard data such as changes in executive equity and changes in institutional holdings, and separate the true from the false. Goheal once advised investors to develop a habit of reverse thinking: the more intensive the good news is, the more calmly we should analyze whether it is performance-driven or emotionally manipulated?
For entrepreneurs, market value management is also a compulsory course.
Only by conducting market value management reasonably and legally, such as through transparent information disclosure, continuous performance growth, and good investor relationship maintenance, can we truly enhance the trust of the capital market and realize the positive cycle of corporate value. Instead of blindly indulging in the short-term market value-raising game, we will eventually shoot ourselves in the foot. Goheal repeatedly emphasized in his research on market value management: truly excellent market value management has never relied on "telling stories", but on "realizing stories".
In this era dominated by algorithms and amplified emotions, market value management is more like a cognitive war without gunpowder. Companies must not only know how to tell good stories, but also have the ability to make stories come true; investors must learn to listen and learn to distinguish between the real and the fake. As Plato said, "The unexamined life is not worth living." Similarly, good news that has not been examined may not be worth blindly following.
At the end of the article, I can't help but ask a question to share with readers:
In your investment experience, have you ever been moved by a seemingly perfect positive narrative, but in the end found that it was a carefully woven illusion? Or, have you ever experienced or witnessed how a company wins the true respect of the capital market step by step through market value management? Welcome to share your stories and opinions in the comment area, and let us uncover the deeper truth of the capital market together.
Goheal Group
[About Goheal] Goheal is a leading investment holding company focusing on global mergers and acquisitions, focusing on the three core business areas of listed company control acquisition, listed company mergers and acquisitions and restructuring, and listed company capital operation. With its deep professional strength and rich experience, it provides enterprises with full life cycle services from mergers and acquisitions to restructuring and capital operation, aiming to maximize corporate value and achieve long-term benefit growth.
