Market capitalization evaporated by more than 70% in a single day, STARPLUS LEGEND responded that it was due to "investors exiting for profit"

The "Russian roulette" of killing valuation in the Hong Kong stock market has now shifted to the "Jay Chou concept stock".

On September 11th, STARPLUS LEGEND (6683.HK) opened with a slight increase of 0.75% before plummeting, triggering the market adjustment mechanism multiple times during the day, ultimately closing down 72.24% to HKD 2.59 per share, with a market value evaporating by HKD 5.6 billion in a single day.

Xin Feng (ID: TradeWind01) inquired with relevant personnel of STARPLUS LEGEND about the reasons.

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 obtained significant returns. In addition, recent market turbulence and pressure on the Hang Seng Index have led to profit-taking by some shareholders, which is within the normal scope of market operations."

"The controlling shareholders, cornerstone shareholders, and management team have full confidence in the company's long-term stable development. The management team will continue to operate well and reward investors with excellent performance. The company is actively evaluating the current situation 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, STARPLUS LEGEND just achieved its best performance in history for the same period. It achieved revenue of HKD 267 million, a year-on-year increase of approximately 76%; and a net profit of HKD 25.45 million, a year-on-year increase of 55.5%.

In the fragile Hong Kong stock market, incidents of companies with a market value of less than HKD 10 billion being heavily devalued by funds have been seen frequently this year.

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

Both companies had a market value of less than HKD 10 billion, with a daily trading volume before the plunge of less than 10 million shares.

STARPLUS LEGEND had a total trading volume of less than 5 million shares in the three trading days before today's plunge. In comparison, STARPLUS LEGEND's trading volume today reached 102 million shares in a single day.

Similarly, Tea Ba Dao (2555.HK) plummeted by 23.21% to HKD 4.5 per share today, and it was included in the Hong Kong Stock Connect on September 10th.

Relevant personnel of Tea Ba Dao told Xin Feng (ID: TradeWind01) that they are currently unclear about the reasons for the stock price movement.

At today's performance sharing meeting of STARPLUS LEGEND, CFO Lai Guohui further responded to today's stock price movement by saying, "The major shareholders and management team of the company are full of confidence in the company's development, and the fundamentals are very strong. 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 very significant."

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

As of May 2nd, the top three shareholders of STARPLUS LEGEND were: Harmony Culture Investment Limited, controlled by Ma Xinting, a long-time business partner of Jay Chou, holding 23.92%; Legend Key International Limited, with Jay Chou's agent Yang Junrong and Jay Chou's mother Ye Huimei each holding 50%, holding 23.92%; and Lai Guohui holding 11.96%