Shenzhen, Jan 20, 2026, 10:04 CST — Regular session
- Longsys A-shares rose 1.73% to 342.08 yuan in morning trade, recovering from an earlier drop
- Shareholders set a preliminary inquiry-transfer price at 212.09 yuan per share, well below the prior closing price
- The allocation is still preliminary, with final settlement handled through ChinaClear’s Shenzhen branch. Buyers are required to observe a six-month lock-up period.
Shares of Shenzhen Longsys Electronics Co., Ltd. jumped 1.73% to 342.08 yuan by 09:57 a.m. Tuesday, after shareholders approved a steeply discounted price for an off-market share transfer. The stock opened at 323.14 yuan and was trading with a trailing price-to-earnings ratio above 200, according to market data.
The transfer price is set at 212.09 yuan per share, about 37% lower than Monday’s closing price. This steep discount might change investor perceptions of clearing levels for big block trades executed outside the order book.
This matters because inquiry transfers aim to limit market impact, but the discount can still rattle holders worried about supply and valuation. The process highlights institutional demand, not retail momentum, and those signals rarely line up cleanly.
Late Monday, Longsys revealed that five shareholder accounts will move 12,574,358 shares after bids came in from 59 institutions, with 54 investors set to receive allocations. The company stressed this isn’t an exchange auction or a standard block trade, nor does it count as secondary market selling. Recipients must hold their shares for six months before they can sell. Longsys flagged the results as preliminary, with final settlement dependent on China Securities Depository and Clearing’s Shenzhen branch. It also warned of risks like judicial freezes or deductions affecting the block.
Tuesday’s trading kicked off with shares pulling back sharply at the open, only to bounce back into the green soon after. The first hour saw volatile swings, as if the market was stuck in a tug-of-war.
The block price sits well below the morning session’s trading range, creating a double-edged sword. It could ease short-term selling pressure by taking those shares off the market. But if selling resumes, it might also establish a new low that investors fixate on.
Longsys provides storage solutions built on flash memory and DRAM, covering embedded storage, solid-state drives, and memory modules. Its lineup features the Lexar and ForeSEE brands, per its website.
Traders are zeroing in on two main issues as the session progresses: whether the stock can hold above yesterday’s close after some early volatility, and if a broader sell-off will come from shareholders not involved in the inquiry transfer.
The downside scenario is straightforward. A sharp discount could lure quick traders to offload shares during rallies. If the transfer outcome changes at settlement, or if additional large holders indicate selling intentions, the stock could move violently again.
Next up is the back-end process: investors will wait for ChinaClear’s Shenzhen branch to complete settlement, then look for a result disclosure that confirms the final allocation.
