Shares of Hopson Development Holdings and China Resources Microelectronics fell sharply yesterday. Hopson was sold down after it announced a HK$1.68 billion fund-raising plan while CR Microelectronics was dumped after it failed in its privatisation bid.
Hopson snapped a five-session winning streak to end 9.41 per cent lower at HK$13.10. It was its largest decline in seven weeks. CR Microelectronics was hit harder, falling the most in more than seven months, losing 19.61 per cent to 20.5 HK cents.
Both stocks opened sharply lower as the market responded to headlines on the developments from the previous day. Hopson's share placement was unveiled after the market close on Wednesday and CR Microelectronics had been suspended for trading that day, pending an announcement that its privatisation bid had been voted down.
'As the privatisation bid had already driven up the share price, normally there would be selling pressure on the shares if the bid was unsuccessful,' said Ben Kwong Man-bun, the chief operating officer at KGI Asia.
'[And] short-term investors are also worried about whether the market will drop further.'
CR Microelectronics might slide for the next few days as investors reassessed its fundamentals, but the falls might be less severe now that they had digested news of the company's failed bid, Mr Kwong said.
Profit takers may have also been eager to pounce on the news, given that CR Microelectronics had surged 129.73 per cent so far this year before yesterday's trade.
Hopson may have also been targeted by profit takers after zooming up 40.12 per cent during a five-day winning streak stretching back to last Wednesday.
Other property developers also declined yesterday. Hang Lung Properties dropped 3.56 per cent and Sino Land fell 2.71 per cent.
ncG1vNJzZmivp6x7tK%2FMqWWcp51krrPAyJyjnmdmbX94fZdomqtlnZ6ws7vEpZycrKKku6qv0mafqKijpLtuwMCknGaalZbBqrrG