New | HNA shares plunge after fugitive tycoon’s allegations

Hong Kong investors dumped HNA shares after a high-profile webcast made by a mainland tycoon fugitive threatened to release information about corruption among China’s leaders.

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HNA Group’s chairman and founder Chen Feng at the officiating ceremony of Hong Kong Airlines’ Airbus A330 aircraft in June 2010. Photo: SCMP

Published: 10:30pm, 24 Apr 2017

Shares of HNA Holding Group, the owner of Hainan Airlines and the biggest buyer of development land in Hong Kong in 2016, recorded their biggest intraday plunge in 17 months, as investors dumped the stock after a fugitive tycoon made allegations tying the company’s acquisitions to corruption involving Chinese leaders and their family members.

HNA fell as much as 16.7 per cent to HK$0.225, the biggest intraday plunge since November 18, 2015, before closing at a two-year low of HK$0.229 in Hong Kong. Shares of Hainan Airlines Co. fell 0.3 per cent to 3.39 yuan in Shanghai.

In an interview with Voice of America that was prematurely cut last week, fugitive businessman Guo Wengui (郭文貴), also known as Miles Kwok, made allegations of infighting within China’s Communist Party, and of wrongdoing by Chinese leaders.

His allegations could not be independently verified. Guo could not be reached to comment. HNA’s spokespersons in Hong Kong declined to comment.

“Today’s HNA underperformance is likely due to news on Guo although it can’t be confirmed,” said UOB Kay Hian’s strategist Hannah Li.

Guo’s interview was cut short last week, which Guo later claimed in his Twitter account was because of pressure from China’s Ministry of Foreign Affairs. A day before he appeared on the Voice of America interview, the international police organisation Interpol had issued a red notice for Guo’s arrest, at the request of China’s government.

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