The dramatic price swing of WELLCELL H-NEW (2477.HK) has captured the attention of retail investors. This previously low-profile small-cap stock surged into the spotlight after the entry of prominent investor Qian Fenglei, also known as "Money Duoduo," and his company, Hengfeng International Holdings Limited. The company's association with hot concepts like Web3 and AI computing power fueled a significant rally, especially after its inclusion in the Stock Connect program, pushing its share price to a record high.
However, the stock experienced a cliff-like plunge on May 21, closing down 83.16%. Its market capitalization evaporated from HKD 19.72 billion to HKD 3.32 billion in a single day, a loss exceeding HKD 16 billion. Intriguingly, southbound capital recorded a net purchase of HKD 1.241 billion in WELLCELL H-NEW that same day.
The trading data for the day of the暴跌 is particularly noteworthy. With a turnover rate of 105.97%, the total shares traded nearly doubled the estimated freely tradable shares, suggesting intense selling pressure. Market analysis indicates that while retail investors contributed to the volume, the trading pattern—characterized by a high open followed by a smooth, unilateral decline throughout the day—suggests a more organized distribution of a large block of shares. The significant net buy from southbound funds on a day of such a steep drop implies they were largely on the receiving end of this sell-off.
Major shareholders have stated they did not sell. Qian Fenglei publicly declared via a live stream that neither he nor the second-largest shareholder had sold any shares. Regulatory filings also show no减持 announcements from the top two shareholders, Hengfeng International (29.9%) and the WELLCELL HOLD Group (16.6%), following their share transfers in May 2025.
This raises the question: if the major holders did not sell, who was behind the massive出货? Analysis points to other large, tradable blocks of shares, potentially from IPO allotments, post-listing流通 shareholders, client accounts behind CCASS custodians, or other大户 holding stakes below the 5% disclosure threshold.
A mysterious figure named Shou Jian adds another layer. On April 15, 2025, the same day Hengfeng International increased its stake to 29.9%—just below the 30% threshold for a mandatory general offer—Shou Jian, a natural person, acquired a 4.5% stake from the same seller at the same price. A 4.5% holding falls below Hong Kong's 5% mandatory disclosure line, allowing movements in this stake to occur outside public view. Public records show Shou Jian has held senior roles at Alibaba Group and serves as an independent director for another listed company. The source of the approximately HKD 270 million for this investment remains unclear.
The暴涨 that preceded the暴跌 was driven by a series of events. WELLCELL H-NEW, primarily a电信网络服务 provider, saw its fortunes change in early 2025 with the entry of Hengfeng International and its star-studded investor roster, including notable figures from the tech and business worlds. The company's subsequent announcements related to Web3, stablecoins, and AI computing, coupled with its inclusion in the恒生综合指数 and the Stock Connect program in early 2026,以及 a 1-for-4 stock split, fueled speculative buying and significantly lowered the entry barrier for retail investors, leading to the price surge despite weakening fundamental financial performance.
The figure of Qian Fenglei himself is colorful. Known as a philanthropist for his lavish bids at charity auctions, which earned him the nickname "Money Duoduo," his background and source of wealth are subjects of speculation. He is famously known as a close friend of Jack Ma. His past has also been marked by extreme danger, including a reported kidnapping and extortion attempt in 2014 and a violent knife attack in Hong Kong in 2020.
As of the close on May 29, WELLCELL H-NEW's share price fell another 6.85% to HKD 0.68, with a total market capitalization of HKD 2.72 billion. The episode serves as a stark reminder of the risks involved in trading stocks where market price diverges sharply from underlying business fundamentals.
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