ST Stock Investment Management Research

Since the establishment of Shanghai Stock Exchange and Shenzhen Stock Exchange in1990,how to perfect the reasonable withdrawal mechanism of ST stocks(stocks with bad performance and illegal stocks)in China’s securities market has always been a common concern for the regulatory bodies such as the China Securities Regulatory Commission,the stock exchange and investors.In the process of perfecting the delisting system of our country’s stock market,it tests the wisdom and ability of the management organization to perfect the delisting system and "plug loopholes".For listed companies,it triggers all kinds of measures taken by ST listed companies to avoid the risk of delisting.For investors,some regard ST stocks as something worthless and avoid it.Some try to find treasure in the "garbage dump" and select those with rising potential and produce high returns.Based on a thorough understanding of the delisting system,this study focuses on the direction of investment management,and examines the dynamic changes of the risk warnings indicators of listed companies,i.e.wearing a hat("ST" mark)and removing a hat(removing "ST" mark).For ST stocks with rising potential,by analyzing the reasons for stock value from decline to rise,this paper summarizes the investment management strategies including selecting,timing and risk control,so as to provide a reference for investors to find out the investment value of ST stocks and prevent and control investment risks,and realize the effective management for ST stocks.