Stock dives 82pc after CEO dumps shares

Dragon King Group (8493, 8556) tumbled by 82.73 percent to HK$0.38 yesterday, after its chief executive Wong Wing-chee offloaded over 40 million shares a few days ago.

Wong sold 40.29 million shares to cash out HK$86.39 million on June 1, June 3, June 4 and June 7.

It is alleged that the group was behind a ramp-and-dump scheme, in which investors are tricked via social media into buying shares at inflated prices, before the scammers suddenly dump their stock, leading to a big drop in price.

Meanwhile, the Securities and Futures Commission has suspended Lun Sheung-nim, a responsible officer of GEO Securities, for 7.2 months. And Hong Kong Exchanges and Clearing (0388) has taken disciplinary action against China Metal Resources Utilization (1636) chairman Yu Jianqiu for cashing in HK$690 million by selling 261 million shares during the black-out period last year.