China’s Sanergy puts blame for Hong Kong stock meltdown on major investor’s forced stake sale

“The group’s business operation remains normal, and there is no material change to the business operation and financial position of the group,” Sanergy said in its statement.

Sanergy’s precipitous decline on Tuesday caught investors off guard; many scrambled to determine what was behind the meltdown. Tuesday’s action wiped away HK$20.1 billion (US$2.58 billion) in Sanergy’s market value, as its daily turnover surged 1,000-fold from the 30-day average.

Otautahi Capital was previously Sanergy’s largest shareholder, and a group of 25 stakeholders owned an additional 27.65 per cent interest, according to an earlier statement from Hong Kong’s Securities and Futures Commission (SFC). The SFC had conducted an inquiry into the company’s shareholder structure.