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(Bloomberg) – Camsing International Holding Ltd. recorded a record 80% drop and its trading volume is almost 400 times higher than the three-month average after the company said its president, Lo Ching, was in custody in Shanghai.
In a statement to the stock market Friday, Camsing, headquartered in Hong Kong, said it learned on July 5 that Lo was being held in criminal custody by the Yangpu Branch of the Shanghai Public Security Bureau. The company's executives were not aware of the reasons, the statement said, adding that corporate and board activities had not been affected. Camsing did not immediately react to his call Monday.
Lo is also president of Jiangsu Boxing Investing & Holdings Co., which dropped the daily limit by 10% in the morning before moving closer to the 10% limit in Shanghai, where it was one of the 40 most traded stocks. despite a market value of only 3 billion yuan ($ 435 million).
In a statement to the Shanghai Stock Exchange after the close on Friday, Jiangsu Boxin said Lo was arrested on June 20, while CFO Jiang Shaoyang was arrested on June 25. He also indicated that his activities were functioning as usual and that steps would be taken to improve corporate governance.
A court in Jiangsu Province has blocked Lo's holdings in Jiangsu Boxin – about 65 million shares, or a 28.4 percent stake – for three years from July 1, the company said in a separate statement. on the Shanghai Stock Exchange last week.
Camsing fell up to 90% earlier in the day. In its report for the semester ended in December, the company announced that it was moving from electronic manufacturing to intellectual property. Its total business figure for the period amounted to about 2.32 billion Hong Kong dollars ($ 300 million).
Last week, another Hong Kong share – Future Land Development Holding Ltd. – dropped after the arrest of a senior official by the Chinese police. These declines can be particularly severe in China, as the founders of big corporations play disproportionate roles.
– With the help of Ludi Wang and Amanda Wang.
To contact the reporter about this story: Jeanny Yu in Hong Kong at [email protected]
To contact the editors responsible for this story: Sofia Horta e Costa at [email protected], Will Davies, Magdalene Fung
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