The stock market in Hong Kong has shifted its focus from the "Russian roulette" of killing valuations to the "Jay Chou concept stocks".

On September 11, $STARPLUS LEGEND (06683.HK)$ It opened with a slight increase of 0.75% and then experienced a flash crash, triggering the market regulation mechanism multiple times during the day (mechanism to regulate market fluctuations caused by trading accidents or program errors that lead to drastic price fluctuations), eventually closing down 72.24% to HK$2.59 per share, with a one-day market cap evaporation of 5.6 billion Hong Kong dollars.

Xinfeng asked the legendary star related personnel for the reason.

The other party explained, "Investors' decisions are often based on diversified investment strategies and capital arrangements, involving both investment costs and return requirements. Due to the company's previous good stock performance, some early shareholders may have received significant gains. In addition, the recent market fluctuations and the pressure facing the Hang Seng Index have led to some shareholders cashing in profits, which is within the normal scope of market operations."

"The controlling shareholders, cornerstone shareholders, and management are confident in the company's long-term stable development. The management will continue to operate the company well and reward investors with outstanding performance. The company is actively evaluating existing conditions and does not rule out considering further measures when necessary to maintain market stability and protect the interests of all shareholders," the above-mentioned person added.

In the first half of this year, Giant Star Legend achieved its best historical performance for the same period. It achieved a revenue of 0.267 billion yuan, an increase of approximately 76% year-on-year; and a net profit of 25.45 million yuan, an increase of 55.5% year-on-year.

In the vulnerable Hong Kong stock market, it is not uncommon to see events where companies with a market cap of less than 10 billion HKD are heavily sold off by capital.

For example, on January 16th of this year, "Wang Yibo concept stock" Lehuah Entertainment (2306.HK) fell nearly 80% in a single day; on the same day, the "number one fruit chain retail stock" Baiguoyuan (2411.HK) fell by 30%.

Both companies have a market cap of less than 10 billion HKD, and the daily trading volume before the plunge was less than 10 million shares.

Legendary Star's total trading volume in the three trading days before today's plunge was less than 5 million shares. In comparison, the trading volume of Legendary Star reached 0.102 billion shares in a single day today.

Similarly, Chabaida (2555.HK) plummeted 23.21% to 4.5 HKD per share today, and it was included in the Hong Kong stock connect on September 10th.

At the performance sharing session of Legendary Star today, CFO Lai Guohui further responded to the stock price volatility, saying, "The company's major shareholders and management are full of confidence in the company's development, and the fundamentals are very good. The short-term actions of individual investors do not affect the company's long-term development. The long-term investment value of the company is enormous."

Lai Guohui did not specify the identity of the "individual investors".

As of May 2nd, the top three shareholders of Superstar Legend are: Harmony Culture Investment Limited, controlled by Jay Chou's long-time business partner Ma Xinting, holding 23.92% of the shares; Legend Key International Limited, owned by Jay Chou's agent Yang Junrong and Jay Chou's mother Ye Huimei, holding 23.92% of the shares; and Lai Guohui holding 11.96% of the shares.

Editor/Lambor