Chinese Stock’s Wild Run Sees $19 Billion Wiped Out in Two Days
It’s been a wild stock market debut for an obscure Chinese garment manufacturer, whose market value has evaporated to less than $600 million from more than $20 billion in the space of a few days.
Addentax Group Corp.’s comedown has been as quick as its rise. The stock had a dizzying 13,000% surge Wednesday in its Nasdaq debut, which saw its market value surpass that of Fox Corp. and Hewlett Packard Enterprise Co., only to give up much of the move over the next two days.
After soaring from the $5 listing price Wednesday to close at $656.54, shares of the Nevada-based holding company slumped 95% on Thursday. The shares plunged a further 47% to $16.00 at 10:42 a.m. in New York on Friday.
Dramatic moves
Swings in the shares evoked similarly dramatic moves in the past month by Hong Kong-based firms AMTD Digital Inc. and Magic Empire Global Ltd. Addentax, whose businesses include garment manufacturing and logistics services, is at least the eighth firm from Hong Kong or China this year to see such moves following initial public offerings in the US.
