Yangzijiang Financial drops 14.5% to 2-year low on expected reversal into red

[SINGAPORE] Yangzijiang Financial shares dropped to a two-year low on Thursday (Feb 26) amid heavy trading on news of the investment management company’s forecast loss for its second half and full year.

The share price decline comes ahead of its H2 and FY2025 financial results, which are expected to be released on or around Friday.

As at 10.19 am, the counter hit an intraday low of S$0.29, retreating as much as 15.9 per cent or S$0.055 from its Wednesday closing price of S$0.345.

It eventually trimmed some of its losses to finish the day down 14.5 per cent or S$0.05 at S$0.295, its lowest price in more than two years, having last traded below this price in October 2023.

With close to 85.4 million shares transacted, it was one of the most heavily traded stocks on the Singapore Exchange by volume on Thursday.

On Wednesday, Yangzijiang Financial said it expected to post a loss for H2 and FY2025. This would mark a reversal into the red from its FY2024 net profit.

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The projected declines were attributed to the recognition of substantial credit loss allowances, after a “comprehensive review” of the group’s debt investment portfolio.

Yangzijiang Financial said it conducted the reassessment to reflect updated credit risk profiles, given current market conditions in China’s real estate and credit markets. This led to higher provisions for non-performing loans and expected credit loss allowances.