HONG KONG, Aug. 25, 2015 /PRNewswire/ -- On August 24, Evergrande Health (HK.0708) announced that its 1-to-10 share split had been approved by the board of shareholders and would be effective from August 25. An original report from Sina Leju follows.
After the share split, the board lot of Evergrande Health will still consist of 5000 shares. According to the closing price on the 24th, the trading price of each board lot will theoretically fall to 7310 HKD. Compared to the price of 73100 HKD before the split, the investment threshold will undoubtedly become much lower.
We believe that the share split of Evergrande Health will attract more small and medium investors to enter the market, increasing the liquidity of its shares, leading to an increased trading volume.
Share split is not rare in the capital market. For example, Baidu implemented a 1-to-10 split in April 2010, and Allied Properties also introduced a 1-to-10 split in August 2007. Both of these shares experienced a price increase after the split.
The effects of Evergrande Health's share split began when the announcement was made on July 24th, since then there has been continuous growth in Evergrande Health's share price.
As a leading listed company in the health industry, Evergrande Health is engaged in various business sectors including internet community hospital, medical cosmetology and anti-aging, new international hospital, and pension industry. Major breakthroughs have been successively achieved in the first two business sectors. The total size of the health service industry is more than 8000 billion yuan, with bright market prospects. The latest research report of Haitong Securities also points out that its launched business such as internet community hospital will become a new profit growth point.
