XI2CSOPHSTECH, a prominent technology company listed on the Hong Kong Stock Exchange, saw its shares plummet by a staggering 9.72% on Wednesday, closing at 13:02:00. The sharp decline comes amidst heightened volatility in the Hong Kong market, fueled by uncertainty surrounding China's stimulus plans.
The broader Hang Seng Index experienced a rollercoaster ride this week, with investors closely monitoring any developments related to China's economic stimulus measures. On Tuesday, the index plunged 9.4%, its worst single-day performance since 2008, after a closely watched government meeting failed to deliver concrete announcements on stimulus plans.
Reflecting the bearish sentiment among investors, net flows into inverse exchange-traded funds (ETFs) that profit from declining Hong Kong stocks hit a record $290 million last week. Conversely, ETFs tracking the upward movement of Hong Kong stocks witnessed a massive $1 billion outflow, the largest weekly outflow since January 2015.
