Sudden plunge of over 80%! Urgent announcement!
The A-share market continued its overall downtrend this morning, with major indices and most industry sectors declining. Additionally, the banking sector defied the trend and showed strength.
The Hong Kong stock market performed relatively stable overall this morning, with minor fluctuations in major indices. However, in terms of individual stocks, there were extremely rare instances of "flash crashes."
Market data showed that Hong Kong-listed Huazhong Vehicle (06830.HK) experienced a stunning decline shortly after the opening, with its intraday drop quickly exceeding 90%, while trading volume also significantly increased. By the midday break, the decline had somewhat narrowed, but it still fell by over 80%.
A-share market continues to decline while the banking sector strengthens against the trend
The A-share market continued its overall downtrend this morning, with major indices falling during the session. By the midday close, the Shanghai Composite Index fell by 0.53%, the Shenzhen Component Index fell by 0.96%, and the ChiNext Index fell by 0.88%.
In terms of industry sectors and tracks, public transportation, tourism, hotel and catering, diversified finance, building materials, and several other sectors saw declines exceeding 2% during the session.
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The banking sector defied the trend and showed strength, with the sector's intraday increase exceeding 1%, led by the big four banks: ICBC, Agricultural Bank, China Construction Bank, and Bank of China.
The petroleum and petrochemical sector also ranked among the top gainers, with Sinopec's intraday increase once exceeding 2%.
In terms of individual stocks, several previously strong stocks fell sharply again this morning.
After experiencing a "floor to ceiling" market movement yesterday, Da Zhong Transportation once again hit the daily limit down this morning.Shenzhen Huaqiang also hit the daily limit down again this morning after hitting the limit down yesterday.
In addition, individual stocks such as Laobaixing and Tianmao Group plummeted straight down at the opening, and the stock prices touched the daily limit down in less than a minute.
In terms of other stocks with significant fluctuations, WuXi AppTec's A-shares fell more than 6% at one point during the morning session today.
WuXi AppTec released a further announcement on clarification matters this morning, stating that the company has learned that the US House of Representatives passed a legislative draft numbered H.R.8333 regarding the proposed "Biosecurity Act" on September 9, 2024 (US time, the same below). This legislative draft passed is based on the version passed by the US House Committee on Oversight and Accountability on May 15, 2024, which includes designating WuXi AppTec as a "biotechnology company of concern." The company strongly opposes this presumptive and unreasonable designation without due process. The bill proposes to restrict the use of funds, loans, or grants provided by the US government to be used in fulfilling government-funded contracts that use certain biotechnology equipment or services provided by designated companies. Despite this restrictive clause, the bill also includes a non-retroactive clause, allowing designated companies to continue to fulfill contracts funded by the US government for their customers until 2032.
The performance of the convertible bond market continues to be differentiated, with some convertible bonds soaring continuously.
This morning, the LianChuang convertible bond surged, with an intraday increase of more than 15%, after having risen 15.74% in the previous trading day.
Additionally, the newly listed bond today—Hangyu convertible bond—rose moderately, with an intraday increase approaching 8%, and closed up 4.58% by the morning session.
Data shows that this convertible bond issue amounts to 6.67 million, with an issue price of 100 yuan per bond, raising a total of 667 million yuan. The raised funds are intended for the construction of a large-scale precision manufacturing industrial park for large ring forgings used in aviation and aerospace, as well as to supplement working capital.
Another flash crash in Hong Kong stocks, urgent announcement.This morning, the overall performance of the Hong Kong stock market was stable, with the main indices showing little fluctuation. However, in terms of individual stocks, there were extremely rare cases of "flash crashes."
Market data indicates that Huazhong Vehicle Systems experienced a surprising decline shortly after the market opened, with the intraday drop quickly exceeding 90%, and at the same time, trading volume also significantly increased. By the midday break, the decline had somewhat narrowed.
Huazhong Vehicle Systems announced at noon on the Hong Kong Stock Exchange that the company's board of directors had noticed unusual fluctuations in the company's share price today. After making reasonable inquiries, the board confirmed that, as of the date of this announcement, they were not aware of any information that should be disclosed to avoid creating a false market for the company's securities, or any insider information that should be disclosed under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong). As of the date of this announcement, the board confirmed that the group's business operations remain normal, and there have been no significant adverse changes in the group's business operations and financial condition.
The company's official website资料显示, the company was established in 1993 and was listed on the main board of the Hong Kong Stock Exchange in January 2012. After more than 20 years of development and growth, it has become a powerful enterprise integrating development, production, and sales, and has become a well-known benchmark enterprise in the industry.
According to the company's official website, Huazhong Holdings has more than 20 production bases in Ningbo, Changchun, Qingdao, Tianjin, Chengdu, Foshan, Chongqing, Yantai, Wuhan, Changsha, Nanchang, Shangrao, and Germany, with more than 3,000 employees. With strong product design and development capabilities and advanced manufacturing technology, the company has become a first-tier supporting supplier for domestic and foreign automotive manufacturers such as FAW-Volkswagen, SAIC Volkswagen, SAIC-General Motors, Beijing Mercedes-Benz, Volvo, Changan Ford, and Chery Jaguar Land Rover. The main products include automotive interior and exterior parts, automotive engine components, automotive air conditioning casings, automotive decorative fabrics, and yacht engine cover parts.
Huazhong Vehicle Systems' recently disclosed semi-annual performance announcement shows that for the six months ended June 30, 2024, the revenue was approximately 775 million yuan, a decrease of about 10.4% compared to the six months ended June 30, 2023. For the six months ended June 30, 2024, the profit attributable to the owners of the parent company was approximately 18.24 million yuan, an increase of about 17.5% compared to the six months ended June 30, 2023.
For the six months ended June 30, 2024, the gross margin was 29.0% (for the six months ended June 30, 2023: 25.6%). In addition, for the six months ended June 30, 2024, the basic earnings per share attributable to the owners of the parent company were approximately 1.03 cents (for the six months ended June 30, 2023: approximately 0.88 cents).
The announcement also stated that the board of directors decided not to declare any interim dividends for the six months ended June 30, 2024 (for the six months ended June 30, 2023: none).
Recently, there have been more than one stock in the Hong Kong stock market that has experienced a "flash crash" with a drop of more than 90% during the trading day. Prior to this, on September 3, another Hong Kong stock, Rising Energy Group, also experienced a "collapse," with a closing drop of 98.40%, and the intraday drop once exceeded 99%.
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