..."Now it is not good for the western's health to hustle the Asian brown, for the western riles, and the Asian smiles and he weareth the western down;

and the end of the fight is a tombstone white with the name of the late deceasedand the epitaph drear:

"a fool lies here who tried to hustle the east.""

Kipling knew years ago about the might of the east and its huge potential.

(Answered by Isaac Sofaer)
Question: Personally I would pay more attention to coal stocks. Recently there's a company (663) becoming a coal stock, which has proposed to restructure its equity and change the board lot size. To combine 20 stocks into 1 and reduce the combined equity from $0.2 to $0.1, the board lot size would be adjusted from 20,000 shares to 1,000 shares. At the same time, it has proposed to reduce the stock premium account, equivalent to the amount of the accumulated loss, and would apply the aforementioned reduction to cancel out the corresponding accumulated loss.
So I'd like to ask, as a minority shareholder, how much loss would be incurred from the above actions?

Answer: You really are creating problems of your own.

Why go for something complex? If you like coal, Yanzhou (1171) and China Shenhua (1088) are excellent.

Splitting the shares 20/1 means nothing, doesn't add $1 to shareholders.

Using the share premium to cancel accumulated losses also means nothing to shareholder equity, it will remain the same.

Only now the accumulated losses are removed can the company pay dividends on profits if it earns any. It's a balance sheet clean up. The share premium a/c can't basically be used to pay dividends or do anything substantive. It just sits there as a shareholder reserve.

So, as a shareholder you incur no loss from the present actions because you've already incurred the losses from past trading activities.