After Shenzhen Blue Technology Holdings plunged more than 80% on August 13, Hong Kong stocks plummeted again today.

Hengyi Holdings opened sharply lower today and continued to decline after opening, falling 88.11% to HK $0.68, with a turnover of HK $192 million and a total market capitalization of HK $522 million.

It is worth noting that with the announcement of the proposed transfer of control, Hengyi Holdings' share price continued to rise from August 12 to August 28, with a cumulative increase of 133%.

Hengyi Holdings is a steel and metal engineering company. The company operates through two divisions. The Steel and Metal Engineering Services Division provides engineering services for construction projects in Hong Kong, including the design, manufacture, supply and installation of steel and metal works. Sales of steel and metal products division produces steel gates, folding gates, fire gates, sluice gates, rolling gates, steel doors and other products. Its major customers include Hong Kong construction companies, as well as small and medium-sized contractors and engineering companies.

The annual results announced on June 30 showed that Hengyi Holdings' income was HK $200.3 million, up 10.1% from a year earlier, gross profit was HK $49.785 million, down 17.7% from a year earlier, and profit attributable to shareholders was HK $12.245 million, down 23.8% from a year earlier. Basic earnings per share are HK1.6 cents.

An announcement caused a huge shock in the stock price.

HY Steel Company Limited ("HY Steel"), the controlling shareholder of the Company, entered into a memorandum of understanding with an independent third party (the "potential Purchaser") regarding the possible sale by HY Steel of 570 million common shares in the share capital of the Company to potential purchasers, representing approximately 74.26% of the issued share capital of the Company as at the date of the announcement. After the announcement, the stock soared 66% on Aug. 17, but it didn't last long, and the share price plummeted just 10 trading days later.

Industry insiders believe that Hong Kong stocks with concentrated holdings and small circulation can easily lead to sharp rise and fall in stock prices caused by capital speculation.There are fewer shares in circulation on the market, and a smaller sell-off of capital can cause a huge shock in share prices. The banker can recover the principal by driving up the stock price in the early stage, and then only need to sell a small amount of shares, so that the cost of the shares can reach zero.Investors should be on guard against Hong Kong stocks with concentrated holdings, small liquidity and poor liquidity, and invest rationally.