What does it mean for listed companies to be placarded?

Holding a placard means that shareholders or groups of shareholders buy shares of listed companies in the securities market. After reaching a certain proportion, it is necessary to disclose its shareholding ratio and intention to the securities regulatory agencies and listed companies, and ask listed companies to provide some information. Specifically, the meaning of the sign is as follows:

Challenge to the control right of listed companies: If the placard holder holds a certain proportion of shares, it may pose a challenge to the control right of listed companies. The placard holder can influence the operation and decision-making of listed companies by exercising shareholders' rights, such as voting on the board of directors and proposing resolutions.

Impact on the business strategy of listed companies: the placard holder may have an impact on the business strategy of listed companies, such as requiring listed companies to change their strategies or reorganize their business.

It may lead to company restructuring: if the placard holds a high enough share, the listed company may be required to restructure or acquire in order to achieve its shareholding target.

Stock price fluctuation: the news of placard will have an impact on the stock price of listed companies. Generally speaking, placards may cause stock price fluctuations in order to obtain greater profits.

Impact on the corporate governance structure of listed companies: placards may lead to changes in the corporate governance structure of listed companies, such as changing the board members and changing the articles of association.