"Stock Movement" The Securities Regulatory Commission has shut down Chen Zhi's affiliated financial company, causing related stocks of GEOTECH HLDGS to drop 8%, and KHOON GROUP also fell by 5%
The Securities and Futures Commission suspended the license of Chen Zhi's affiliated financial company, causing GEOTECH HLDGS's stock price to drop by 8.1% and KHOON GROUP to fall by 5.2%. Chen Zhi has been indicted by authorities in the US and UK for alleged transnational fraud, and related assets have been frozen. Since October 14, GEOTECH HLDGS's stock price has cumulatively dropped by 39.36%, with KHOON GROUP experiencing an even larger decline, reaching a new low since its listing
According to the Economic News Agency on the 4th, GEOTECH HLDGS (01707) is currently down 8.1%, trading at HKD 0.057, with a transaction volume of approximately 370,000 shares, involving HKD 20,000. The stock reached a high of HKD 0.059 and a low of HKD 0.051. KHOON GROUP (00924) is down 5.2%, trading at HKD 0.091; the stock has a transaction volume of about 30,000 shares, involving HKD 2,752, with both a high and low of HKD 0.086.
The "KK Park" fraud case in Cambodia has drawn international attention, with the U.S. and U.K. governments taking joint action on October 14 to formally charge Chen Zhi, chairman of Prince Holding Group, accusing him of being the mastermind behind a transnational fraud network involved in forced labor, human trafficking, and large-scale fraud. U.S. and U.K. authorities have frozen Chen Zhi's property assets in London, valued at approximately GBP 100 million, and confiscated 127,271 bitcoins, worth about USD 15 billion.
Hong Kong authorities have also followed suit. According to the latest information on the Hong Kong Securities and Futures Commission website, the licenses of the insurance brokerage "Mighty Divine Investment Management Limited" and the securities company "Mighty Divine Securities Limited," both affiliated with Prince Group, are currently listed as "temporarily suspended," with a note stating "regulated activities have been terminated."
GEOTECH HLDGS and KHOON GROUP previously issued statements distancing themselves from Chen Zhi, but he remains the controlling shareholder of both listed companies, holding 54.79% of GEOTECH HLDGS and 55% of KHOON GROUP.
Since the U.S. and U.K. took action on October 14, GEOTECH HLDGS has seen a decline of 17.02% on the 15th and 25.64% on the 16th, followed by a period of sideways trading, mainly fluctuating between HKD 0.05 and HKD 0.07, with the current price of HKD 0.057 representing a cumulative drop of 39.36% since before the U.S. and U.K. actions.
In comparison to GEOTECH HLDGS, KHOON GROUP has experienced a more significant decline. KHOON GROUP fell 23.61% on the 15th and 20.60% on the 16th, with the stock price continuing to decline, hitting a low of HKD 0.086 today, marking a new low for the group since its listing over six years ago, with a cumulative drop of 70.16% from the 14th to now. However, both stocks have low trading volumes, and even after Chen Zhi was sanctioned, there has been no significant trading activity. For today, the respective transaction volumes are HKD 20,000 and HKD 2,752
