Jan
22
Hong Kong’s Billion-Dollar Plunges Highlight Share Pledge Danger
By-
Company founders can use stock as collateral and not reveal it
- Jiayuan’s 89% drop was only the latest case to hit investors
Hong Kong’s share pledge problem is raising its head once again.
Jiayuan International Group Ltd. sank as much as 89 percent on Thursday on what turned out to be a margin call on stock used as collateral by its chairman. The sudden plunge, the biggest decline in the world this year of a company worth more than $1 billion, was the latest example of a Hong Kong-listed business losing almost all its value in a matter of minutes and then revealing that an insider had pledged a substantial amount of their shares for loans…
Hong Kong’s Billion-Dollar Plunges Highlight Share Pledge Danger
