Second HNA Unit Resumes Trading After Long Halt; Stock Plunges
Second HNA Unit Resumes Trading After Long Halt; Stock Plunges
(Bloomberg) -- HNA-Caissa Travel Group Co. dropped by the 10 percent daily limit in Shenzhen trading after it became the second unit of indebted Chinese conglomerate HNA Group Co. to resume trading this week.
HNA-Caissa, which resumed trading on Thursday after a six-month suspension, slumped to 11.61 yuan as of 9:30 a.m., heading for its lowest close since July 2017. Affiliate Bohai Capital Holding Co., which resumed trading on Tuesday after a months-long stock halt, fell for a third straight day.
HNA-Caissa and Bohai Capital were among a slew of units that the Chinese conglomerate suspended from trading in January, when the volume of news about HNA’s liquidity challenges was peaking. The units cited major restructurings for the suspensions, though analysts have pointed out there may be other motives given that Chinese companies have a history of using trading halts to prevent their stocks from falling further.
In its statement Thursday, HNA-Caissa said it called off its plan to buy a majority stake of a tourism-related financial services company, citing changes in policy and market conditions.
HNA’s remaining halted companies are:
- CCOOP Group Co.
- Hainan Airlines Holding Co.
- HNA Technology Co.
- Hainan HNA Infrastructure Investment Group Co.
- HNA Investment Group Co.
To contact the reporter on this story: Prudence Ho in Hong Kong at pho83@bloomberg.net
To contact the editors responsible for this story: Young-Sam Cho at ycho2@bloomberg.net, Dave McCombs
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