Abnormal strength in the ST sector, beware of risks and avoid following the trend in investment.

Recently, the performance of the ST sector has been unusually active. On May 12th, *ST Yushun achieved 12 consecutive limit-up days, with 18 limit-up days in 19 trading days. On the same day, more than 40 other ST stocks such as *ST Bodao and *ST Xingguang also hit the limit-up. In the past 5 trading days, the number of ST companies hitting the limit-up has exceeded 30 each day. From the sector index perspective, the ST sector index has risen by 12.50% in the past month. Why is the ST sector strong at this time? According to analysts from securities firms interviewed by Shanghai Securities News, after the implementation of the new delisting rules, due to the higher financial threshold, the number of companies facing delisting warnings due to financial issues has significantly increased. After the release of the third quarter report in 2024, some ST companies experienced a significant pullback in their stock prices, but the relevant warning announcements have already "pre-empted" the risk, so many companies' stock prices have risen instead of falling after being "shamed". In addition, some ST companies have announced capital operation plans ahead of time due to shell protection actions, igniting market expectations for restructuring.