Central China Securities shares plunge in Shanghai and Hong Kong as asset management products face default risks
Shares of Central China Securities tumbled in Shanghai and Hong Kong after the brokerage said two of its asset-management products worth 241.5 million yuan (US$35.1 million) may be about to default on payments to investors.
The stock had slumped 9.8 per cent to 5.22 yuan at the close on Friday in Shanghai, capping its biggest decline since May 6. The shares lost 4 per cent to HK$1.70 in Hong Kong.
The two asset-management products were backed by Minxing Pharmaceutical, a drug maker in the northeast province of Fujian, according to the National Business Daily.
In an exchange filing, Central China Securities said it had spotted the risk that the fundraiser may default on payments, and then obtained evidence of falsified documents provided by the fundraiser.