Hong Kong Firm Chairwoman Detained by Chinese Police, Stock Nosedives 90%
Camsing International Holding Ltd has seen a record stock drop of 90% after its chairwoman Lo Ching was detained by Chinese police, Bloomberg reported on Monday, July 9.
According to a statement that Camsing delivered to the Hong Kong stock exchange, on July 5 the company found out that its chairwoman Lo Ching was held in criminal custody by the Shanghai branch of the Public Security Bureau. The reasons for her detention were not clear.
As of press time, Camsing shares were trading at their lowest since February 2015. The stock went to the bottom of the Hong Kong Stock Exchange's Hang Seng Composite Index (HSI), which itself saw a 1.9% decrease. However, Camsing reassured that its business and board operations have not been affected.
Lo Сhing is also the chairwoman of Jiangsu Boxin Investing & Holdings Co. Its chief financial officer Jiang Shaoyang was also detained on June 25. The company’s stock in Shanghai dropped by 10% for the second day in a row.
Last week, a senior official of another Hong Kong firm, real estate company Future Land Development Holding Ltd, was also detained by mainland police on sexual assault allegations. The company’s stock fell by 36% soon after.