China Huarong Asset Management Company had its shares resume trading on the Hong Kong Stock Exchange on Jan. 5 after a nine-month suspension was lifted, but the stock plummeted 55%, hitting a record low.
The shares dropped to HK$0.495 (US$0.063) on Wednesday, which is the lowest price since Huarong started listing in 2015, marking a loss of 51.5%.
Reuters says the decline reflects “investors’ pessimism” though the company announced its restructuring plan a day earlier.
China Huarong shares are allowed to resume trading after the company announced in November that it had received a recapitalized fund of CNY42 billion (US$6.6 billion) from a group of state-backed investors led by Citic Group, according to Investing.
Citic Group is now China Huarong’s second-largest stakeholder after China’s Ministry of Finance.
China Huarong is one of four state-owned bad-asset managers. Its shares halted trading in April 2021 after the company missed the Mar. 31, 2021 deadline to file its 2020 earnings. In August, it reported a profit of CNY158.3 million (US$24.9 million) for the first six months of 2021, after posting a loss of CNY106.274 billion in 2020.