Shanghai property developer Sinic Holdings Group Co. halted trading on Monday afternoon after its shares nosedived by nearly 90%, Bloomberg reported.
- The company did not provide any reason for the trading halt, but the slump in the two hours ahead of the suspension came with a surge in trading volume, which hit 14 times the average in the last year.
- The plummet dragged Sinic’s market value below $230 million, which would be below the average for listed property developers in the city. The company has yet to respond to media queries regarding the matter.
- Researchers attribute the slump to margin calls on some of the company’s major shareholders, with investors concerned over liquidity. It also comes as Hong Kong’s property index fell the most since May 2020.
The risk-off sentiment was also seen in other financial markets, with Chinese dollar bonds down and the Hong Kong dollar at a month-low. 2103 is down 87.01%.