Date
24 May 2017
Hang Fat Ginseng chairman Yeung Wing-yan has denied rumors that some pledged shares led to a fire-sale Thursday. Photo: HKEJ
Hang Fat Ginseng chairman Yeung Wing-yan has denied rumors that some pledged shares led to a fire-sale Thursday. Photo: HKEJ

Hang Fat Ginseng chief rebuts rumors related to share pledge

Hang Fat Ginseng Holdings Co. (00911.HK) chairman Yeung Wing-yan (楊永仁) has refuted speculation surrounding his personal finances and a rumored fire-sale involving some pledged shares.

Yeung denied that he has pledged some of the company stock that he owns, the Hong Kong Economic Journal reported Friday.

The chairman also stressed that Hang Fat Ginseng’s operations are continuing as usual, it said.

The comments came in response to queries after company’s share price plunged 91.4 percent on Thursday to 3.4 HK cents before the firm sought a trading suspension.

By the time trading was halted 36 minutes into the morning trading session, a total of HK$7.22 billion in market capitalization was wiped out from the stock.

As of the end of Jan. 18, Yeung held 2.54 billion shares, or 12.69 of issued stock, in short position and 14.259 billion shares, or 71.24 percent, in long position, according to the report.

The short position is purportedly related to Yeung’s share pledge as a counterparty may be having certain mandatory put options. 

Yeung told HKEJ that he will seek opportunities to raise his holding.

[Chinese version中文版]

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