Hong Kong’s latest problem is a 99% nosedive

China Tianrui Cement Co

10/04/2024 05:32

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Chan Ka Sing
       HONG KONG, April 10 (Reuters Breakingviews) - That’s how
much shares in cement maker China Tianrui fell in 15 minutes,
erasing some $1.9 bln of value. It’s not the first such plunge
on the city’s bourse, and at present outsiders can only guess at
its cause. It’s a reminder that governance and transparency
still need work.
    Full view will be published shortly.
    
    CONTEXT
    The stock price of China Tianrui Group Cement plunged 99% 
in 15 minutes before Hong Kong’s stock market closed on April 9,
slashing the Henan-based cement maker’s market value to only
HK$141 million from HK$14.6 billion ($1.9 billion). 
    Hong Kong regulators allow substantial shareholders in
listed firms to borrow against stock and not disclose their
pledged position.

 (Editing by Antony Currie and Katrina Hamlin)
 ((For previous columns by the author, Reuters customers can
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