23 February 2019

China Resources units seen facing more share selloff in HK

The Hong Kong-listed units of China Resources (Holdings) could see their share prices come under further pressure this week following news of the ouster of its chairman Song Lin amid an anti-corruption investigation in the mainland, Singtao Daily reported Tuesday.

The combined market value of the five Hong Kong-listed units plummeted by more than HK$6.1 billion (US$786.7 million) between April 16 and April 17 after Song’s sacking on April 15. The shares could fall as much as 10 percent in a single day, according to the paper.

Meanwhile, some uncertainties will arise with regard to China Resources Pharmaceutical Group’s plan to list on the Hong Kong Stock Exchange, it noted. The company, which had both assets and revenue in excess of 100 billion yuan (US$16.03 billion) last year, is the second largest among the parent’s seven major businesses.

A market observer was quoted as saying that the units’s operations should not be affected by the Song incident, but the shares could take a big hit if hedge funds decide to short the stocks.

– Contact HKEJ at [email protected]


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