Hong Kong Stock’s 78% Collapse Adds to Wave of Sudden Crashes
- First Capital, Virscend lose more than $1 billion combined
- Cross holdings have been a concern for city’s stock investors
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A third Hong Kong stock in less than a week lost most of its value in a sudden one-day plunge, underscoring concern that the $5.2 trillion market has become a breeding ground for wild volatility.
China First Capital Group, an investment company that focuses on financial and education services, plunged as much as 78% on Wednesday before trading was suspended. Virscend Education Co., which is partly owned by First Capital, also lost as much as 78% before paring its decline to close 33% lower. The moves wiped out a combined $1.2 billion in shareholder value.