June 18 (Bloomberg) -- GCL-Poly Energy Holdings Ltd. dropped the most in 20 months after a unit of China Investment Corp. sold 1.2 billion shares in the largest maker of materials used in solar panels.
GCL-Poly dropped as much as 13 percent to HK$1.82, the sharpest fall since Oct. 4, 2011, and was at HK$1.86 as of the noon trading break in Hong Kong. The city’s benchmark Hang Seng Index declined 0.6 percent.
Chengdong Investment Corp., a subsidiary of CIC, sold 1.2 billion shares of GCL-Poly, representing 7.8 percent of the polysilicon maker’s equity capital, at HK$1.87 each, according to a GCL-Poly statement to the Hong Kong stock exchange today. The announcement triggered a selloff among concerned investors, according to Peter Sheng, a Hong Kong-based analyst at Guotai Junan Securities HK Ltd.
“Fundamentals of GCL-Poly haven’t changed even as the share sale from CIC injected a sense of bear sentiment into investors’ minds,” said Sheng, who has a $HK2 target price for GCL-Poly shares. “I see this round of selloff as a good buying opportunity for those who’ve paid enough attention to the company’s fundamentals.”
Chengdong continues to own 12.3 percent of GCL-Poly’s share capital after the sale, according to the statement.
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