"If we have to choose, we should naturally pick a stock with no state-owned shares, no legal person shares, and no foreign shares. Only when there are enough shares circulating in the market can this plan possibly succeed. Among the stocks listed on the Shanghai Stock Exchange that meet the requirements, there are only four. However, two of them are outright garbage stocks compared to the other two; the companies clearly lack development potential and probably won't be their targets. So I suspect they will ultimately choose between stock 601 and stock 603."
"Why not the other two?"
"Choosing these two has two advantages. First, when they declare their intention to acquire the company, the original management has the strength to compete with them for shares in the stock market, allowing their plan to proceed smoothly. Second, in the unlikely event that their plan fails—or alternatively, goes too smoothly and they succeed in directly acquiring the company—it's still a safe and profitable deal, even if the payback period is a bit long. Long-term returns remain guaranteed, which is something they can accept. If they are willing to stay in Shanghai long-term, they can also use these stocks for repeated trading to make a profit."
Chapter 385