Two years after Hong Kong’s securities regulator vowed to nip irregularities in the bud, flash crashes are still plaguing the world’s fourth-largest stock market.
This year’s wave rivals the notorious “Enigma Network” that prompted the last bout of regulatory hand-wringing in 2017. In mid-January, Chinese real estate developer Jiayuan International Group Ltd. plunged without warning, triggering a $4.8 billion selloff in small-cap stocks. Then on Monday, circuit-board maker Camsing International Holding Ltd. tumbled a record 80% after the company said Chairwoman Lo Ching was in police custody in Shanghai. On the same day, a number of other small stocks, including Beijing Sports and Entertainment Industry Group Ltd., crashed for no apparent reason.