Impact of Fuen Oriental's Financial Fraud Incident and Analysis of Stock Price Trend After Being Labeled ST

Fuen Oriental received an administrative penalty notice and will implement other risk warnings [0] due to false records in the financial indicators of its annual report. After the incident was disclosed, the company’s stock price fell from 6.43 yuan on November 19 to 5.41 yuan on December 19, a drop of 15.86%, and the market had already reacted to expectations in advance; after resuming trading on December 23, the stock price further fell to 4.49 yuan, a drop of about 17%, close to the daily limit for the ChiNext board, indicating strong market sentiment [0].

1. Impact on the A-share ST Sector
   : The financial fraud incident will trigger investors’ risk-averse sentiment towards the ST sector, especially for companies suspected of financial abnormalities. The ST sector itself has high risks, and the Fuen Oriental case will intensify investors’ cautious attitude, possibly leading to increased selling pressure in the sector. Historical cases show that after similar financial fraud stocks are labeled ST, the ST sector is prone to short-term fluctuations [0].
2. Impact on Investor Confidence
   : Financial fraud violates information disclosure rules and seriously undermines investors’ trust in listed companies, especially small and medium-sized investors. The Fuen Oriental incident will strengthen investors’ suspicion of the information disclosure of ST stocks and reduce the overall risk appetite of the market [0].

• Risk Points
  : After the company is labeled ST, its stock price faces short-term downward pressure; investors’ avoidance sentiment towards the ST sector rises, which may lead to overall fluctuations in the sector. Damaged investor confidence may trigger a short-term decline in market risk appetite [0].
• Opportunity Window
  : No obvious opportunities have been identified so far.

Fuen Oriental’s financial fraud incident has caused a sharp drop in its stock price, with a significant decline after resuming trading with the ST label. The incident will strengthen the risk-averse sentiment in the A-share ST sector and undermine investors’ trust in the information disclosure of listed companies. The company’s stock price still faces downward pressure in the short term, and investors need to pay attention to related risks.