It was an ugly scene as high-end fashion group Ports Design plunged a record 43 per cent yesterday after its chairman quit for failing to disclose connected transactions.
Ports Design, which resumed trading after being suspended for nearly two months, recovered a little from the intraday low to close 38 per cent down at HK$7.04. Its sister company PCD Stores fell nearly 10 per cent to HK$0.74.
The benchmark of Hang Seng Index edged up 0.6 per cent.
The company said in a filing on Monday night that chairman Edward Tan had received interest-free advances from a company unit between January 2010 and this month that should have been announced as 'disclosable transactions and connected transactions'.
'This has dealt a blow to investors' confidence in the company's corporate governance,' said Wendy Huang, head of research at SinoPac Securities (Asia).
'Actually, the company is also facing tough times amid weak market demand and mounting inventory pressure.'