Hwa Kay Thai Holdings

The most dramatic fall on the Hong Kong market yesterday was staged by restaurant and property company Hwa Kay Thai Holdings.

The stock's share price plummeted 29 per cent to end at 54 cents after the company said it planned to sell $502 million worth of new shares to existing shareholders at 50 cents per share. The money raised will be used to pay off part of the $540 million in loans made by controlling shareholders to the company.

News of the new issue added to investor gloom just one day after the company announced that its net profits in the 1996 financial year dropped 83 per cent to $12.47 million.