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Shares of Chinese Developer Plunge by a Record 62% in Hong Kong

Shares of Chinese Developer Plunge by a Record 62% in Hong Kong

(Bloomberg) -- Chinese developer Fullsun International Holdings Group Co. Ltd. plunged by a record in Hong Kong trading.

The stock sank 62% to an all-time low, with 440 million shares changing hands. The company said in a brief exchange filing shortly before midday its board wasn’t aware of any reasons for the stock slump, while its operations remain normal.

Shares of Chinese Developer Plunge by a Record 62% in Hong Kong

Shares started to slump Wednesday afternoon, closing down 34%.

Shares of Chinese Developer Plunge by a Record 62% in Hong Kong

The plunge has left Fullsun with a HK$1.08 billion ($138 million) market cap while Thursday’s trading volume equaled 10% of the company’s public float. Overall, it has 11.4 billion shares outstanding.

Fullsun, before a December 2017 takeover, was known as U-Right and involved in garment wholesaling and retailing. With a name change and divestment of that business, the firm went into property development. Shares by March 2018 got as high as HK$1.87 before starting a steady slide.

A floor was finally reached six months ago around HK$0.50. But a fresh breakdown started in September and accelerated as October arrived. Shares have fallen all six trading days so far this month.

To contact the reporter on this story: Kevin Kingsbury in Hong Kong at kkingsbury2@bloomberg.net

To contact the editors responsible for this story: Sofia Horta e Costa at shortaecosta@bloomberg.net, Richard Frost

©2019 Bloomberg L.P.