Hong Kong Small Cap Stock Plunge Wipes Out $6.1 Billion in Value
- Index of GEM-listed companies saw biggest drop since 2015
- China Jicheng, GreaterChina Professional fell more than 90%
Hong Kong Small Cap Plunge Wipes Out $6.1B
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A string of Hong Kong stocks suddenly plunged Tuesday, with traders pointing to links between some of the companies and a brokerage that’s under regulatory investigation.
Seventeen firms tumbled by more than 40 percent at the close, losing a combined HK$47.8 billion ($6.1 billion) in market value. China Jicheng Holdings Ltd., an umbrella maker, and GreaterChina Professional Services Ltd. sank more 90 percent. Lerado Financial Group Co., whose shares were halted by Hong Kong’s securities regulator this month, has previously disclosed an investment in China Jicheng and an underwriter role on a GreaterChina share placement in 2015.