Yunfeng Financial plunged 15.7% in Hong Kong, after announcing the placement of 190 million new shares to fund system upgrades, talent recruitment, and related capital requirements.

Yunfeng Financial announced the placement of 191 million shares under a “top-up” arrangement, representing approximately 4.71% of the enlarged share capital. The placement price was set at HKD 6.1 per share, reflecting a discount of about 16.8% to the closing price of HKD 7.33 on September 15. The company expects to raise net proceeds of approximately HKD 1.15 billion from the placement. Around 70% of the proceeds will be allocated for system upgrades, talent recruitment, and related capital needs, including, but not limited to, launching comprehensive virtual asset trading services and virtual asset-related investment management services. The remaining 30% will be used as general working capital to cover day-to-day operational expenses of the group.