In the Hong Kong stock market, another stock has suffered a brutal plunge.

Today, the individual stock Huazhong In-V plummeted nearly 90% during intraday trading, with the decline narrowing slightly. The latest drop is 79.42%, trading at HK$0.46 per share, with a total market value of 0.823 billion Hong Kong dollars.

Even more strangely, there has been no bearish news about Huazhong In-V in the information aspect, and the reason for this decline is also unknown.

Clarifying 'No Major Adverse Changes'

Even Huazhong In-V itself looks confused. In an announcement to the Hong Kong Stock Exchange, the company's board of directors noted the unusual price fluctuations of the company's shares today.

After conducting reasonable inquiries, the board of directors confirmed that, as of the date of this disclosure, they are not aware of any information that needs to be disclosed to prevent false markets for the company's securities or any insider information required to be disclosed under Part XIV A of the Securities and Futures Ordinance Chapter 571 of the Laws of Hong Kong.

Huazhong In-V also stated that the board of directors confirmed that the group's business operations are normal and that there have been no significant adverse changes in the group's business operations and financial condition.

According to the data, Huazhong In-V is engaged in the manufacturing and sales of automobile interior and exterior structures and decorative parts, molds and tools, air conditioning or heater enclosures, storage tanks, and other non-automotive products.

In the first half of this year, Huazhong In-V's revenue was approximately 0.775 billion yuan, a decrease of 10.4% year-on-year. The attributable net profit of the parent company was approximately 18.24 million yuan, an increase of approximately 17.5% year-on-year. The gross margin was 29%, which was higher than the 25.6% in the same period last year.

The stock price has soared 7.35 times in less than a year.

It is worth noting that in 2021, the stock price of Huazhong In-V experienced a substantial surge, soaring 7.35 times between January 21, 2021 and December 1, 2021, reaching a peak of HK$5.074 per share on December 1, 2021.

During this period, the stock price of Huazhong In-V experienced multiple sharp increases and decreases, and after each sharp increase, it would close lower on the second trading day.

On February 11, 2021, it surged by 60.2%. On August 2nd, 3rd, and 4th, 2021, it surged by 21.07%, 23.62%, and 16.76% respectively. On November 30, 2021, it surged by 22.73%.

On May 6, 2021, it plummeted by 27.39%. In June 2021, it dropped by 10.95%. On September 20, 2021, it tumbled by 28.61%. On November 1, 2021, it fell by 13.44%. On December 2, 2021, it slumped by 38.64%.

After this round of rise in 2021, the stock price of huazhong in-v started to slowly decline. Before today's plunge, the stock price had already accumulated a decline of 53.05%.

Including today's decline, the stock price of huazhong in-v has dropped by nearly 90% from its peak.

The sharp decline of huazhong in-v inevitably evokes thoughts of another stock in the Hong Kong stock market last week.Ascend Group's dramatic drop exceeded 99%because it was singled out for its highly concentrated ownership.

Both stocks experienced multiple increases in the early stages and then suddenly plunged on a certain day. It is unknown whether the two have similar reasons for the sharp decline.

Some analysts believe that there are several main reasons for the sharp decline in these Hong Kong stocks:

First, the ownership concentration of stocks is too high, and some individual stocks even face the risk of delisting.
Second, there are problems with the stock pledges of major shareholders, leading to forced liquidation.
Third, some stocks are being manipulated maliciously.
Fourth, there may be a problem with the overall market liquidity.