Company of actress Zhao Wei’s husband soars 52% in HK trading
Jin Bao Bao, an unprofitable packaging company, lists Zhao Wei’s husband Huang Youlong as its largest single shareholder
Jin Bao Bao Holdings, an unprofitable packaging company owned by the husband of Chinese actress Zhao Wei, became the biggest percentage gainer on the Hong Kong bourse when its shares soared as much as 52 per cent within two hours on Wednesday.
Shares of the company soared to an intraday high of HK$0.10, before settling the day with a 38 per cent gain to HK$0.091. Turnover jumped to HK$15.64 million, with 174.9 million shares changing hands, a sixfold jump from the previous day. Fewer than 7.6 million shares changed hands everyday on average in the past 12 months, according to Bloomberg’s data.
The company hadn’t disclosed any material development concerning its share price movement. Calls to its office in Central, and to its office in Mianyang in Sichuan province were unanswered.
“There’s no solid news in the company’s fundamentals,” said Kenny Tang Sing-hing, chief executive officer of Jun Yang Securities in Hong Kong. “The buying is highly speculative.”
Jin Bao Bao produces packaging, and structural components used in appliances. It reported a first-half loss of 12.9 million in August, swinging from a 2.2 million yuan profit a year earlier, attributing the loss to “increases in financial expenses and administration expenditures” in its financial report.
It’s scheduled to report its full year 2016 financial results on March 24.
The company was taken over last June by Zhao’s husband Huang Youlong, who declared a 20.59 per cent stake, purchased for HK$630 million, or HK$0.30 per share, from closely held Trend Rich Enterprises.
That would make Jin Bao Bao the fifth company in which Huang owns stakes. He also owns stakes in Sino Golf Holdings, Yunfeng Financial Group, Zhejiang People Culture, and Alibaba Pictures Group.
Zhao, who also goes by the name Vicki, owns 1.5 per cent of Shenzhen-listed Zhejiang Talent Television & Film.
“Looking at the history, it’s a quite speculative stock,” said VC Brokerage’s director Louis Tse Ming-kwong, who recommended clients to be cautious about the stock.
There’s good reason for caution. After a November 2011 debut on the Hong Kong bourse at HK$1.25 per share, the stock soared to HK$10 by mid-2015, before announcing a 1-for-10 stock split. By 2016, the stock’s value had plummeted 70 per cent.