A-shares of China Vanke Co. closed down 2.57% to 17.43 yuan per share on Monday, the lowest closing price since its trading resumption on July 4. As of yesterday, 77 billion yuan has been lost in merely a matter of days.
Even so, some analysts are still bearish on the stock, believing that it still has some large room to fall. Apart from analysts at Goldman Sachs recently giving the company a target price of 15.6 yuan per share, analysts at Credit Suisse were more pessimistic, cutting Vanke’s previous target price of 20.8 yuan by more than half to 10.1 yuan.
In addition, according to the 21th Century Business Herald’s statistics, seven of Baoneng Group’s nine asset management plans, which had bought the equities during their tumble in the past days, have now been in the red.
According to the paper’s calculation, if Vanke’s stocks fall below 16.31 yuan per share, one of the asset management plans, Taixin No.1, could be at risk of closing down in coming days.
Vanke’s A-shares continued to fall on Tuesday. As of 14:40 Beijing time, the stocks lost 1.84% to 17.11 yuan per share, hitting new lows since resumption, and not very far from the 16.31 yuan close-out line.