Hong Kong investment firm Ding Yi Feng’s plan to list mainland Chinese affiliate spooks investors, shares crash
- Founder Sui Guangyi plans to list its Shenzhen affiliate on an international digital exchange, according to an unconfirmed social media post
- Ding Yi Feng’s shares sank 31.3 per cent to HK$0.92 on Tuesday, taking the overall decline to 47.3 per cent since January 10
Shares of Hong Kong-listed investment firm Ding Yi Feng Holdings Group International have taken a hit amid speculation that its Shenzhen affiliate plans to list on an international digital exchange, and freeze asset trading for the next several months.
The move has confounded market observers, who believe the company could be in trouble.
Founder Sui Guangyi plans to list Ding Yi Feng International Asset Management Group on an overseas digital exchange to help investors generate “significant returns”, according to an unsubstantiated statement attributed to Sui circulating on social media since January 10. The news has also been widely reported by local Chinese media.
Following the listing, Ding Yi Feng’s underlying assets will be converted into “digital options” and traded globally, according to the social media post.
The company did not immediately reply to a request for comment by the Post.