Agile Drops After Saying Chairman Chen Charged: Hong Kong Mover
Agile Property Holdings Ltd. (3383), a Chinese developer, had its biggest drop in more than a year in Hong Kong trading, after saying Chairman Chen Zhuo Lin was formally charged with indecent assault.
The arrest is unrelated to the business of the group and will not affect operations, the developer said in a statement to the Hong Kong stock exchange today. The company, based in the southern Chinese city of Guangzhou, will make a further announcement when appropriate, according to the statement.
Chen was arrested by police in Hong Kong in August in connection with an allegation of indecent assault and now faces two counts, according to Agile. The company will have to name a “major decision-maker,” and clarify its business plans if Chen ceases to be the chairman, said Danielle Wang, an analyst at DBS Vickers Hong Kong.
“Agile’s share price will be under short-term pressure,” said Wang, who maintained her “hold” rating on Agile. “The stock is fairly valued in the long term.”
Agile dropped as much as 7.4 percent to HK$11.74, and traded at HK$11.78 as of 2:32 p.m. local time. The stock is headed for its biggest drop since Nov. 10, 2011.
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