The stock price of Kangji Medical (09997) is below the issuance price, but still within an acceptable range. However, this also raises our concerns about a major risk in the Hong Kong stock market: privatization.

Imagine a scenario: a stock's reasonable valuation is 30 yuan, but the market price drops to 15 yuan. Many investors may see this as an excellent buying opportunity and subsequently increase their holdings significantly. Unexpectedly, the stock price continues to decline to 5 yuan. Normally, if there were no threat of privatization, such an extreme undervaluation would be like a spring compressed to its limit, containing enormous potential for appreciation. Investors could have patiently held on or continued to buy, waiting for the value to return and sharing in the company's future growth.

However, the emergence of privatization has completely changed the rules of the game. Major shareholders may suddenly announce a privatization at a price of 10 yuan, which is undoubtedly a severe blow to investors. This not only leads to a permanent loss of principal but also wastes valuable time costs, making it a double whammy.

This situation highlights the unique risks of the Hong Kong stock market and reminds investors to consider various possibilities comprehensively when making decisions. When facing seemingly undervalued stocks, we must not only analyze their intrinsic value and growth potential but also be wary of possible privatization risks. Diversifying investments, setting stop-loss orders, and closely monitoring the movements of major shareholders are all preventive measures that can be taken.

Overall, while there are many opportunities in Hong Kong stock investments, the risks cannot be ignored. Investors need to maintain a clear mind and conduct a comprehensive risk assessment to achieve long-term stable returns in this challenging market.