At the direction of the Stock Exchange of Hong Kong Limited, trading in the shares of China Tianrui Group Cement Company Limited (stock code: 01252) has be resumed at 1:00 p.m. today (9/12/2024). The shares soared more than 1000%.

China Tianrui Group Cement Co., Ltd. has appointed Vincorn Consulting and Appraisal Limited to assess asset impairment and bad debt provisions, aiming to ensure the accuracy of its 2024 interim financial results. The finalized results, expected on December 20, 2024, may significantly differ from the preliminary figures, prompting the company to advise investors to await these updated results before making investment decisions. Trading of the company’s shares remains suspended until further notice.

The forced sale would account for almost half of the transactions on the day when Tianrui’s stock plunged 99% to about HK$0.05 on April 9, according to Bloomberg-compiled data. A third of the company’s free float changed hands, with more than 80 million traded during the final few minutes of the session. It’s unclear what triggered the initial decline, forcing the margin call.

The sudden and steep fall of its shares underscores the risks associated with Chinese companies that have a high shareholding concentration and are involved in owners’ margin accounts.

Tianrui at that time said in the statement that its business operations remain normal. But share trading will remain halted while the board seeks to clarify more information, including confirmation from Yu Kuo on whether there was an execution of another 10 million shares of margin calls.

Yu Kuo is “seeking legal advice as to whether the forced sale was in compliance with all applicable laws as well as the terms of the relevant contracts,” according to the statement. “Yu Kuo will take further action as appropriate and necessary.”

The Li couple was once one of the richest people in Henan province, jointly ranking 168 on the Hurun Report of China’s richest people in 2010 with a net worth of 6.8 billion yuan ($940 million) for their ownership in Tianrui.

The company swung to a net loss of 634 million yuan last year, from a profit of 449 million yuan in 2022, citing the sector downturn and competition.