China LNG Group Ltd. (00931.HK) suffered another bout of heavy selling Friday, with the stock losing as much as 70 percent, amid reports of a large-scale sell-off by mainland investors, according to the Hong Kong Economic Journal.
On Thursday, shares of the the new energy development and investment group plunged 60 percent just nine minutes into the afternoon trading session.
The stock closed 36.8 percent lower to HK$1.80, wiping out HK$11.8 billion from its market value of about HK$20.3 billion.
Turnover was HK$2.87 billion (US$370.13 million), second only to Tracker Fund of Hong Kong Ltd. (02800.HK) but higher than Tencent Holdings Ltd. (00700.HK).
China LNG is still up sixfold this year.
Chairman Kan Che-kin said he did not sell any shares and that the sell-off might have been due to short-selling by hedge funds.
Short-selling of the stock has been decreasing in the past few days and was just 0.018 percent on Thursday, the report said.
Market sources attributed the plunge to a large number of mainland investors dumping shares.
BOC International Holdings Ltd., HSBC Securities (Asia) Ltd., UBS Securities Asia Ltd., Bright Smart Securities & Commodities Group Ltd. (01428.HK) and KGI Securities Co. Ltd. also saw high transaction volumes, the report said.
– Contact us at [email protected]