Macau small cap dives 81pc after social media pitchBusiness | Winnie Lee 27 Nov 2020
Shares of Macau E&M (1408), a newly listed electrical and mechanical contractor, plunged over 80 percent with a turnover of HK$125 million after the stock was recommended by market watchers through social media groups.
The shares opened 15 percent lower yesterday, then slumped as much as 88.3 percent to HK$0.51, the lowest ever.
This came after it recorded a turnover of HK$79.68 million in five minutes before the stock market closed on Wednesday, at prices between HK$4.36 and HK$4.47.
It closed 81.88 percent lower at HK$0.79.
Macau E&M was "strongly recommended" by some groups on social media apps WeChat and WhatsApp and the shares were billed as "WeChat shares" by market watchers.
The Macau-based company, which made its debut in September saw its share rise from an initial public offering price of HK$1 to a peak of HK$5.5 early this month.
Among the retail shareholders on Wednesday, Kingkey Securities held 9.35 percent, down from 11.2 percent in early October, Zhongtai International Securities' stake was lowered from 3.36 to 2.22 percent and Ever-Long Securities from 1.79 to 1.07 percent, data from the Central Clearing and Settlement System showed.