Clutch of Small Caps Plunge as Much as 93% in Hong Kong
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A string of Hong Kong stocks suddenly plunged Thursday with no explanation, leaving traders to speculate that a forced seller was behind the moves.
More than $1.4 billion was wiped from the value of five small-cap stocks, with Sino Haijing Holdings Ltd. at one point dropping 93 percent. Traders pointed to speculation that a large holder might have been forced to liquidate shares after a loan went sour. An employee at Sino Haijing said nobody could respond to questions, while a spokesperson for Beijing Gas Blue Sky Holdings Ltd., which lost as much as 71 percent, couldn’t be reached.