Core Viewpoint - The recent wave of share reduction announcements in the A-share market reveals a systematic retreat of capital, undermining the so-called "bull market consensus" and exposing the harsh reality for investors in the registration system era [1][2]. Group 1: Mass Reduction of Shares - On August 14, over 30 listed companies, including Yida Co., Yuhuan CNC, and Longhua New Materials, announced share reduction plans, citing reasons like "personal funding needs" and "investment arrangements" [1][2]. - Notable examples include Yida's controlling shareholder planning to reduce up to 2% of shares for approximately 40 million yuan, and Yuhuan's controlling shareholder intending to reduce 3% of shares, corresponding to over 150 million yuan in market value [2]. - The trend of "relay-style" reductions has formed a complete industrial chain, with venture capital firms quickly exiting after significant returns, such as a 60-fold return from DeFu Technology [2]. Group 2: Discounted Trading Channels - Block trading at discounted rates has become a key tool in this capital frenzy, with companies like Yifeng Pharmacy completing transactions at a 6.6% discount [3]. - Regulatory silence has exacerbated this distortion, allowing major shareholders to reduce stakes through block trades without prior notice, leading to a seamless chain of "reduction announcement - block trade - secondary market sale" [3]. - For instance, a major shareholder sold 2% of shares at 38.55 yuan each, only for the buying institution to sell them the next day at 40.2 yuan, achieving a single-day return of 4.28% [3]. Group 3: Valuation Bubble - The root of the reduction wave lies in the valuation gap between the primary and secondary markets, with venture capital firms achieving average returns of up to 48 times since 2020 [4]. - A representative case is Kanghua Biology, where the controlling shareholder transferred 6.6% of shares at an 8% discount, despite having a cost of only 1.3 yuan per share, resulting in a 68-fold profit [4]. - This "golden cicada shedding its shell" tactic is frequently observed in the A-share market, with original shareholders often holding shares at costs significantly lower than current market prices [4]. Group 4: Regulatory Loopholes - The reduction operations of Shengtong Co. highlight deeper institutional flaws, as shareholders managed to announce reductions just below the 1% regulatory threshold, avoiding pre-disclosure requirements [5][6]. - Similar tactics have been seen in other companies, where shareholders executed multiple small transactions to evade regulatory scrutiny, revealing the ineffectiveness of current reduction rules [6]. Group 5: Retail Investor Dilemma - The A-share ecosystem has fundamentally changed, with retail investors' average holding period dropping to 27 days, a 62% decrease since 2020, while major shareholders' holding periods have extended to 5.8 years [7]. - The stark contrast between "short-term retail trading" and "long-term shareholder holding" reflects a panic among capital regarding valuation bubbles and a compulsion to cash out [7]. - The companies involved in the recent reduction announcements have high price-to-earnings ratios, indicating that major shareholders are eager to cash out despite significant declines in stock prices [7]. Group 6: Market Regulation Failure - The recent share transfer by Kanghua Biology is not an isolated incident but part of a larger trend within the 107 trillion yuan market, where regulatory alarms have been drowned out by market noise [8]. - The simultaneous announcements of share reductions and pre-disclosure notices from different companies illustrate not only shareholder greed but also the failure of institutional design [8]. - Ordinary investors must understand the underlying messages behind the flood of announcements, as they often signal the withdrawal of capital from the market [8].