Shang Hai Zheng Quan Bao·2025-10-13 11:46Core Viewpoint - The recent judicial auction of shares in Jinlong Co., Ltd. marks the fifth instance of such events this year, indicating ongoing dilution of the controlling shareholder's stake and potential shifts in the company's ownership structure [2][7]. Group 1: Auction Details - On October 12, 30 million shares held by the controlling shareholder, Dongguan New Century Science and Education Development Co., Ltd., were auctioned on JD's judicial auction platform [2]. - The auction concluded with all 10 lots sold after over 720 bids, with the winning bidder, Chengdu Jinyao No. 1 Enterprise Management Partnership, acquiring 21 million shares for 262 million yuan [4]. - The auction prices ranged from 36.83 million yuan to 39.33 million yuan per lot, reflecting an increase from the starting price of 31.38 million yuan [4]. Group 2: Shareholding Changes - Following the auction, Chengdu Jinyao No. 1 is expected to become the fifth-largest shareholder of Jinlong Co., Ltd., holding over 2% of the shares [5]. - If all 30 million shares are sold, the controlling shareholder's stake will decrease to 16.29%, although the actual control of the company will remain unchanged [7]. Group 3: Market Context - The phenomenon of frequent share auctions is not isolated to Jinlong Co., Ltd., as it reflects a broader trend within the brokerage sector, where judicial auctions have become more common [9]. - The mixed results of share auctions indicate varying market appetite, with some auctions experiencing high interest while others, like Huachuang Yuxin's auction of over 41 million shares, failed to attract any bids [9][10]. - Analysts suggest that the fluctuating outcomes of these auctions are influenced by factors such as starting prices, market volatility, and the unique conditions attached to the shares being auctioned [10]. Group 4: Industry Outlook - Despite the cautious sentiment surrounding share auctions, institutional investors maintain an optimistic outlook on the brokerage sector, citing potential for recovery in valuations and performance growth [11]. - Reports indicate that the securities industry is expected to see improved performance in the third quarter, driven by increased trading activity and a favorable comparison to last year's low base [11].