Yili, as a leading dairy company in China, is deeply trusted by the people. Now that Yili's enterprises are developing smoothly, Yili's share price has been falling all the way, and the reasons are also related to the following points.
1. The market overestimates the development potential of Yili enterprises. The stock price that can support enterprises has been at a high level, on the one hand, because the development of enterprises is quite stable, on the other hand, because the market is constantly optimistic. As the market is optimistic about the future development of Yili, investors and institutions continue to speculate on Yili's share price, resulting in a serious inflated share price of Yili.
Second, the development of Yili failed to meet expectations, resulting in insufficient confidence of investors and institutions in the development of Yili. As a leading enterprise in domestic dairy industry, Yili has always maintained a fairly good level of development, but Yili cannot always be in a state of rapid development. Once the development speed of Yili tends to slow down, it will bring unfavorable information to the market. Under the cover of such unfavorable information, Yili's share price will naturally plummet all the way.
Third, negative news leads consumers to distrust Yili extremely. Food safety has always been a very sensitive topic for consumers, and there has been a food safety crisis in Yili. However, when Yili solved the food safety problem, it did not dispel consumers' concerns, which also made consumers always skeptical about Yili's products. In the absence of consumer support, Yili's share price will naturally react.
In fact, what Yili can do is to continue to make good products. If the product has quality problems, the stock price of Yili will plummet more seriously, and it is even possible that Yili's stock will be delisted.