https://www.reuters.com/breakingviews/hong-...ive-2024-04-10/
https://www.bloomberg.com/news/articles/202...dive-in-moments

- Chinese Cement Maker Stock plunges 99% within minutes
- Wiping out almost $1.8 billion in market capitalization.
- The stock was 70% owned by a single controlling shareholder and their spouse!

A Chinese cement producer was in the spotlight after it suspended stock trading Wednesday, following a selloff that nearly wiped out all its market value in the final 15 minutes of the previous session.



HONG KONG, April 10 (Reuters Breakingviews) - The last thing Hong Kong’s struggling stock market needs is for the shares of a $1.9 billion listed company to plunge 99% in 15 minutes. That's the fate that befell China Tianrui Group Cement (1252.HK), opens new tab as trading drew to a close on Tuesday. At present outsiders can only guess at what caused the problem.
Tianrui is hardly an unknown company. U.S. private equity powerhouse KKR chose it for its first mainland China investment in 2007, before helping to take it public four years later. And the company has supplied cement for major infrastructure ventures such as the South–North Water Transfer Project. Chinese media often describes its chair, Li Liufa, who along with his wife owns about 69% in Tianrui, as “the richest man in Henan province”.

Yet the company has been bulldozed by the problems in the country's beleaguered property sector. Last week it reported a 634 million yuan ($45.8 million) net loss for 2023, compared with a net profit of 449 million yuan a year earlier. In the past few years, Li has pledged parts of his stake in Tianrui for loans to support his company’s operation.

That has prompted speculation among financiers in Hong Kong that Li may have been subject to a margin call. It has happened before. Jianyuan International Group, a homebuilder that has since defaulted, sank as much as 89% in one session in January 2019 on what turned out to be a margin call on shares its chairman pledged as loan collateral.
Trouble is, substantial shareholders don’t need to disclose whether they have borrowed against their stock unless it's related to an issuer's financing.

Tianrui, for example, said in a January filing that Yu Kuo, the vehicle that holds Li's shares, pledged 97 million shares - just under 5%, opens new tab of its holdings - to secure a 12-month loan for the group. On the face of it, though, that seems too small to trigger such a massive price drop.

For now, trading in Tianrui shares is suspended pending an announcement on "inside information". Perhaps that will fill in all the gaps about why the company's market value now stands at just $18 million. It'd be better though, if Hong Kong stock market watchdogs insisted on far more transparency before there's a crash.

CONTEXT
The stock price of China Tianrui Group Cement plunged 99% in 15 minutes before Hong Kong’s stock market closed on April 9, slashing the Henan-based cement maker’s market value to only HK$141 million from HK$14.6 billion ($1.9 billion).
Hong Kong regulators allow substantial shareholders in listed firms to borrow against stock and not disclose their pledged position.



This post has been edited by likefunyouare: Apr 10 2024, 07:00 PM

Maybe they had some information about the clients that some other countries want

They refused and they short 9 the company

Instantly up car, imagine u r shorting this stock

marketcap HK$14.6B> HK$0.141B

LoL

In crypto, it's norm

This post has been edited by Xith: Apr 10 2024, 07:05 PM

No worry....
Soon linggit will also same.....

worth to spend rm1000 to buy in, maybe can make 100x profit, risk that rm1k only.

Too late. It’s gonna open high the next trading day. Haosen went up 400 % after dropping 90%. I was thinking the same too

sudah down, bbb la
haha

Really gg but it would seem like something went really wrong inside the company.

If that stock upcar like that, staying in context of the movie, Ting Hai would be extremely overjoyed instead

BBB UUU ALL IN

Soon to be raided by China authority.

Owner can now privatise easily.

Just as planned.

own 70%. how does it drop 99% unless the owner(70%) also dump like shit which does not make sense

Doesn't make sense. Iinm hkse limit down at 15%

maybe the company sudah empty ,everything transfer out tinggal book value shja. than owner say fck it, sekali dump all out screw investor.
while family on chartered plane otw to swiss retirement.

This post has been edited by TRAZE99: Apr 10 2024, 08:20 PM

director also dump and run