Hong Kong Stock Volatility: Government Announcement Leads to 70% Plunge, Followed by Doubling in Value

Reported 8 months ago

Chinese automotive value chain company 'Changjiu Group' subsidiary 'Changjiu Stock,' established during the past 5 years, experienced a stock price surge of over 17.5 times from its HK$5.95 IPO in January to a peak of HK$108.2 by mid-June. However, a recent announcement by the Hong Kong Securities and Futures Commission warning about the high concentration of ownership within Changjiu Stock caused a 75% drop in share price the next day, closing at HK$36 and evaporating HK$14 billion in market value. Despite the plunge, the stock rebounded over 20% in three consecutive trading days, doubling in value from the low point of HK$36.48 on June 20.

Source: YAHOO

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