HK Stock Market Move | CARLINK TECH (02531) fell over 42% in the afternoon, dropping nearly 90% from its February high. Regulatory scrutiny points to the failure of centralized equity.

CARLINK TECH (02531) fell more than 42% in the afternoon, hitting a low of HK$5.65, down nearly 90% from its February high of HK$51.6. As of the time of writing, it has fallen 39.6% to HK$5.98, with a trading volume of HK$10.23 million. On the news front, CARLINK TECH previously announced its 2024 annual report, reporting revenue of 700 million RMB, a year-on-year increase of 24.9%; and a net profit of 44.44 million RMB, a year-on-year decrease of 13.1%. In addition, the company had previously announced that the shares held by its cornerstone investors and controlling shareholders would be unlocked on January 14, 2025. It is worth noting that according to previous institutional forecasts, CARLINK TECH was expected to be included in the Hong Kong Stock Connect on March 10, 2025. However, the Hong Kong Securities and Futures Commission recently conducted an inquiry into the company's shareholding distribution. The results of the inquiry showed that on January 2, there were 20 shareholders including 3 executive directors of the company, holding a total of 348 million shares of the company, equivalent to 94.94% of the company's issued share capital. Therefore, the company only has 18.5595 million shares, accounting for 5.06% of the issued shares, held by other shareholders. The company's eligibility for inclusion in the connect will be temporarily suspended until the issue of concentrated shareholding is resolved.