HSBC Holdings Plc's Hong Kong Stock Plunge
Mar 10, 2009 | Comments 0
Yesterday saw HSBC Holdings Plc’s (HKG:0005) stock holdings in Hong Kong fall by 24 per cent, this has now prompted a government probe. The stock exchange is also considering bringing forward changes to its end-of-day trading process. This morning shares have since rallied 15 per cent.
The Securities and Futures Commission have started an investigation into trades that were put through at yesterday’s close. Kong Exchanges & Clearing Ltd. is also considering the implementation of a 2 percent cap on stock fluctuations during the closing auction sessions.
The closing auction process has been used by the exchange since May last year; this process has attracted criticism from investors and lawmakers, who claim it distorts stock pricing. This session extends trading by 10 minutes.
Filed Under: Business News