Can Longbridge's stock price return to its high?

The recent IPO market in Hong Kong has been extremely hot, with many new stocks being oversubscribed by hundreds of times. However, if we're talking about the best-performing stock this year, it has to be Changjiu Holdings.

Changjiu Holdings started trading on January 9, 2024, and rose 17.39% on its first day. Although the first-day gain didn't seem significant, it kept rising continuously. From its listing to June 19, the closing price was 104.57 yuan, with a total increase of 1744.27%, which is truly astonishing.

However, on June 20, there was a sharp drop of 65.98%.

So, I checked the HKEX website to see if there was any major shareholder selling. Given the sharp drop on the 20th, I first looked at the shareholder holdings on the 19th. Below is the shareholder holding situation of Changjiu Holdings on June 19.

Below is the shareholder holding situation of Changjiu Holdings on June 20.

The main change was Futu Securities reducing their holdings from 1.23% to 1.07%. Other major shareholders' holdings remained largely unchanged, and Futu is primarily used by retail investors.

The actual controller was once the richest person in Jilin.

Changjiu Holdings was established in 2019, with Bo Shijiu and Li Guiping as the actual controllers.

In 2016, Changjiu Logistics, a subsidiary of Changjiu Group, successfully went public. That year, Changjiu Logistics' stock price surged by over 253%.

That same year, Bo Shijiu and Li Guiping's net worth skyrocketed to 18 billion yuan, earning them a spot on the "2016 Hurun Rich List." With a net worth of 18 billion yuan, they surpassed Xiu Langui and Li Yanhua of Xiuzheng Group to become the "richest in Jilin."

From these two points, we can see that the company's actual controllers have substantial influence, and there are no significant signs of major shareholders selling. Moreover, after the sharp drop on June 20, the stock has risen for three consecutive days. There might indeed be a chance to return to previous highs.

$CHANGJIU HLDGS(06959.HK)