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Hong Kong investors are bewildered by the resounding success of the stock market's action by a deficit investment company of the city, which has seen its stock increase by nearly 9,000% in recent years , apparently without catalyst.
Shares in China Ding Yi Feng Holdings Ltd., a holding company based at the International Commerce Center, Hong Kong's tallest building, has grown 8563% over the last five years, according to a report released Friday by Bloomberg .
Here is the table:
For reference, Amazon's shares have risen by about 340% over the last five years, while Apple's shares have increased by 125%.
The wild winnings, however, have some scratching their heads. "The fundamentals do not support the stock recovery at all," Li Yuanrong, general manager of the 20VC-based Shenzhen-based venture capital firm, told Bloomberg.
The company has reported losses for seven of the last eight years.
Read more:A group of shares in Hong Kong has collapsed to 70% without warning – and no one really knows why
China Ding Yi Feng is headed by President Sui Guangyi, a skilled personality of "investing in investment skills tied with Warren Buffett and George Soros". The company's literature describes Sui as a "legendary figure" and an "influential scholar," Bloomberg said. It holds approximately 16% of the outstanding shares of the company, worth around $ 600 million.
Given the size of the Chinese company Ding Yi Feng, which has a market capitalization of about US $ 31 billion (US $ 4 billion), it is now included in a number of indexes set up by the MSCI. which means that many huge investment funds like BlackRock and Vanguard have interests in the company, Bloomberg said.
The Hong Kong stock market is no stranger to wild and unexplained events. In January, investors were left to retire when several companies listed on the Hong Kong Stock Exchange plunged Thursday afternoon, some losing up to 80% of their value, apparently without any losses. explanation.
Jiayuan, a real estate developer, was the hardest hit by the crash, recording a 81% drop and a loss of more than HKD $ 25 billion ($ 3.2 billion) in a single afternoon.
You can read the full story of Bloomberg about China Ding Yi Feng Holdings here.
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