Shares in high-profile property investor Pearl Oriental Holdings and plywood-maker Pacific Plywood Holdings plunged yesterday as rumours of a possible probe into unusual share-price movements by securities regulators intensified.
Pearl and Pacific Plywood are rumoured to have raised regulatory concern over the huge discrepancy between their underlying asset values and share prices.
Brokers said fears of an investigation by the Securities and Futures Commission (SFC) into the reasons behind Pearl's rise had sent the shares down almost 33 per cent since Tuesday.
They said Pacific Plywood shares had tumbled as a result of what they called the 'Pearl effect'.
Pearl - which paid $540 million for the world's most expensive house, Skyhigh, last November - has seen its market capitalisation reduced by more than $850 million to about $2.6 billion.
Pearl was the market's biggest loser yesterday, fading 22.24 per cent to $1.73 with 149.84 million shares changing hands worth $283.3 million.
Pacific Plywood has fallen 12 per cent in the past two days, including a 10.2 per cent fall yesterday to $2.20.
