HK's Linklogis sinks to record low, says Valiant Varriors' report groundless

Linklogis

22/07/2021 06:13

** Shares of supply chain finance technology solutions
provider  9959.HK  fall as much as 18.4% to HK$9.20 in resumed
trade, their lowest since listing on April 9    
    ** Shares set for the worst day since listing; second
biggest percentage decliner on the Hong Kong bourse    
    ** Guangdong-based company says allegations in a research
report by Valiant Varriors LLC are groundless, contain various
misrepresentations, false allegations and obvious factual errors
(https://bit.ly/3eL9Rai)
    ** Stock, which jumped 17.9% to HK$13.30 on hopes of a
rebound after clarification, lost steam later as investors
unloaded their stake to reduce the risk exposure due to weak
sector-wide sentiment 
    ** Co says allegations include hiding over-exposure to the
real estate sector, overstating revenue, inadequate investment
in R&D; lacking innovation, blockchain expertise and experienced
technology professionals    
    ** Says it has initiated formal legal action against Valiant
Varriors to protect the company's rights
    ** Stock fell 9.9% prior to a trading halt on Tuesday
afternoon after Valiant Varriors released its report; shares
down about 23% so far this week
    ** The Hong Kong Hang Seng sub-index that tracks information
technology firms  .HSCIIT  up 2.03% and the Hang Seng Tech Index
 .HSTECH  gains 1.9%
    ** The Hang Seng China Enterprises Index  .HSCE  rises 1.7% 
and the benchmark index  .HSI  climbs 1.8%


 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))