HK regulator to look into share pledge financing

Hong Kong

HONG Kong's securities regulator said on Thursday it would take "a hard look" into pledging of shares for loans, such as in the case of China Huishan Dairy Holdings Co Ltd which last month saw a sudden stock plunge on concerns over its finances.

On March 24, shares of Huishan plunged 85 per cent in just a few hours, wiping US$4 billion of its market value in a single day as investors worried about its financial position.