Tue, Jul 09, 2019 - Page 10 News List

Hong Kong stock plunges 90% after chair detained

Bloomberg

Camsing International Holding Ltd (承興國際控股) tumbled a record 90 percent and trading volume soared to 300 times the three-month average after the company said that chairwoman Lo Ching (羅靜) is in police custody in Shanghai.

In a statement to the stock exchange late on Friday, Hong Kong-headquartered Camsing said that it became aware on July 5 that Lo was being held in criminal custody by the Yangpu branch of the Shanghai Public Security Bureau.

The directors of the company were unaware of the reasons, the statement said, adding that business and board operations have not been adversely affected.

Camsing did not immediately respond when reached for comment yesterday.

Lo is also chairwoman of Jiangsu Boxin Investing & Holdings Co (江蘇博信投資控股), which slumped by the 10 percent daily limit in the morning and then rose by the 10 percent limit in afternoon trading in Shanghai, where it was one of the 20 most-traded stocks, despite having a market value of just 3 billion yuan (US$436.04 million).

In a statement to the Shanghai Stock Exchange after Friday’s close, Jiangsu Boxin said that Lo was taken into custody on June 20, while chief financial officer Jiang Shaoyang (姜紹陽) was detained on June 25.

It also said that its business was operating as usual.

A court in Jiangsu Province has frozen Lo’s holdings in Jiangsu Boxin — about 65 million shares, or a 28.4 percent stake — for three years from Monday last week, the company said in a separate statement to the Shanghai Stock Exchange last week.

Its total revenue for the period totaled about HK$2.32 billion (US$297.48 million).

Last week, another Hong Kong stock — Future Land Development Holding Ltd (新城控股) — tumbled after a senior figure was detained by Chinese police.

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