Data shows that the number of stocks below 2 yuan has dropped by 90%, which is considered to be the market "eliminating" low-priced stocks. However, after a sharp rebound, the risks of low-priced stocks need to be paid special attention to, especially near the end of the year. When the annual report disclosure season comes next year, the risk of low-priced stocks such as performance explosion is much higher than other stocks.
The relationship between stock price and performance is that performance is the cause and stock price is the result. However, the factors that affect stock prices are not only performance, but also other factors, such as investor sentiment. As the market warms up and individual stocks are actively traded, low-priced stocks are more favored by retail investors because they are absolutely cheaper, making retail investors feel more like picking up a bargain.