Huishan collapse shocks HKEX

Charles Li, chief executive of the group that owns the Hong Kong stock exchange (HKEX), spoke to calm market jitters after Huishan’s shares collapsed 90 percent Monday.

Li said that China investor inflows in had caused ‘some issues’, but the market is ‘not a casino’ reports the Financial Times. HKEX is attractive to Chinese investors looking for offshore exposure.

Ping An Bank, Jilin Jiutai Rural Commercial Bank, HSBC, China Citic and Hang Seng Bank all took a hit as China Huishan Diary, based in Liaoning province, defaulted on loans of RMB 14 billion, wiping $4 billion off the company, reports Reuters

Similar scale collapses in Hong Kong have included Tech Pro Technology, which also dropped 90 last year.