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Hong Kong Has New Boom-to-Bust Stock Mystery: Digital Domain

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Digital Domain Holdings Ltd. became the latest Hong Kong stock to tumble after surging more than 500 percent in a matter of months, following declines in Hanergy Thin Film Power Group Ltd. and Goldin Financial Holdings Ltd.

The company, which owns a majority stake in the visual-effects producer for Hollywood movies including Iron Man 3, sank as much as 61 percent in Hong Kong Wednesday without an immediate explanation. The stock closed 41 percent lower amid record volume. Digital Domain was unaware of any reason for the drop, according to a regulatory filing, while the company declined to immediately comment in response to questions.