Shares of Mao Geping Cosmetics Co. Ltd. (01318.HK) plunged more than 9 percent after two block trades totaling HKD625 million were executed at a discount on Friday morning.
The sale suggests a significant shareholder is reducing their position, creating strong selling pressure on the stock. The company has not yet publicly commented on the trade.
The off-exchange trades involved a total of 9.8731 million shares at a price of HKD63.3 per share, representing a 5 percent discount to the previous day's closing price. Following the news, the stock opened 5.48% lower and hit an intraday low of HKD55.4. The shares last traded at HKD60.25, a decline of 9.6%, on volume of 11.32 million shares.
The large, discounted block trade has raised questions about potential insider selling and has significantly increased downward pressure on the stock. The decline puts the stock at its lowest point since its recent rally, testing investor confidence. Investors will be closely watching for any disclosures regarding the identity of the seller and the company's upcoming earnings report for further direction.
This article is for informational purposes only and does not constitute investment advice.
