The Hong Kong and China Gas Company Limited (0003.hk), China Gas in short, scrapped the issue of bonus shares for the first time since 2009 after recording a 16.5% fall in net profit in 2021. The stock price of China Gas dropped over 14% in one day after the announcement. It is believed that the decision is the reason for the drop in the market price of the stock.

b. Describe and explain, how the stop of issuing bonus shares affects the value of the stock of China Gas.(10 marks)