Chong Hing Bank shares surge after report says controlling family may sell
Report says family that controls bank may sell, prompting shares to jump almost 10 per cent, pulling other closely held lenders in its wake
Shares in the Liu family-owned Chong Hing Bank rose to a 25-month high yesterday after reports said the Lius were ready to sell the lender.
Transaction volume increased fourfold, to 2.58 million shares, compared with the previous trading day. Shares of the parent company, Liu Chong Hing Investment, rose 5.1 per cent to close at HK$12.30, their highest since 2007.
A source from an investment bank said the lender is in talks to sell the business. The bank declined to comment.
The board was not aware of any information that must be announced, the bank said in a statement to the Hong Kong stock exchange following a jump in the price of the stock and an increase in trading volumes that began on March 28. The lender said the statement was made at the request of the bourse.
The Apple Daily newspaper reported yesterday that the family may confirm a potential disposal of a controlling interest in the bank. The family holds 60 per cent of the lender.
"The board would like to confirm that it is not aware of any negotiations or agreements relating to any disposal of controlling interest in the bank by its controlling shareholders," the Chong Hing board said.