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Chinese Cement Maker Halted After 99% Crash in 15 Minutes


The_King

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The last thing Hong Kong’s struggling stock market needs is for the shares of a $1.9 billion listed company to plunge 99% in 15 minutes. That's the fate that befell China Tianrui Group Cement (1252.HK), opens new tab as trading drew to a close on Tuesday. At present outsiders can only guess at what caused the problem.

Tianrui is hardly an unknown company. U.S. private equity powerhouse KKR chose it for its first mainland China investment in 2007, before helping to take it public four years later. And the company has supplied cement for major infrastructure ventures such as the South–North Water Transfer Project. Chinese media often describes its chair, Li Liufa, who along with his wife owns about 69% in Tianrui, as “the richest man in Henan province”.
Trouble is, substantial shareholders don’t need to disclose whether they have borrowed against their stock unless it's related to an issuer's financing.

Tianrui, for example, said in a January filing that Yu Kuo, the vehicle that holds Li's shares, pledged 97 million shares - just under 5%, opens new tab of its holdings - to secure a 12-month loan for the group. On the face of it, though, that seems too small to trigger such a massive price drop.

https://www.reuters.com/breakingviews/hong-kongs-latest-problem-is-99-nosedive-2024-04-10/
 

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https://www.bloomberg.com/news/arti...na-outlook-to-negative-on-steady-rise-in-debt

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On 4/10/2024 at 9:34 PM, The_King said:

@socrates469bc

 

 

can explain in laymen term?

 

means cashflow of banker not enough to cover margin call.

 

only kgks will invest in tiongland property-related, financial, retail and internet counters now.

 

this one is another kgk stock.

 

limpeh use pigu think also know cannot buy.

 

wahahahahahahahahahahahahaha

 

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tiongs are well known for their tale spinning

 

if u go to tiong cities, there seem to be many very rich tiongs.

if u go to MBS, orchard rd. u can also see many rich tiongs, walking around in branded attire, dont need to work.

 

i understand there are many rich people from tiongland economy growth of the past decade.

but i dont believe there are SO MANY very rich people...

i conclude many of them are swimming naked.

the tide is receding

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55 minutes ago, meng.huat said:

tiongs are well known for their tale spinning

 

if u go to tiong cities, there seem to be many very rich tiongs.

if u go to MBS, orchard rd. u can also see many rich tiongs, walking around in branded attire, dont need to work.

 

i understand there are many rich people from tiongland economy growth of the past decade.

but i dont believe there are SO MANY very rich people...

i conclude many of them are swimming naked.

the tide is receding

 

name of the game is leveraging and man's laziness.

 

best example

 

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