By Gina Lee

Investing.com – on its first trading day resuming from a nine-month suspension.

Shares fell 52.94%, to HK$0.480 ($0.076), at 11:49 ET (4:49 GMT), a new record low for the Hong Kong Stock Exchange since October 2015 when China Huarong was introduced.

Following the March 2021 missed deadline, the company, which was one of four state owned bad-asset managers in poor-asset management, stopped trading its shares in April 2021. 31 March 2021 was the deadline for filing 2020 earnings. It reported in August 2021 that it had made a profit in CNY158.3million ($24.9 million), compared to a loss in CNY106.274 trillion in 2020.

Following its November 2011 announcement that share trading would resume, this resumption was achieved. Citic Group is now China Huarong’s second-largest shareholder after China’s Ministry of Finance.

China Huarong stated in an announcement that they had met the requirements for resumed trading of shares, which included the disclosure all information relevant to their business, financial performance and operations.

To strengthen its core business, the company announced that it was making a number of divestments. This included stake sales in its consumer finance and securities businesses as well as its bad asset exchange business.

However, investors had a different view. They believed the best way to avoid such a severe fall is up.

With the fall expected given the long suspension, “the worst is over, and the stock price needs time to go into an uptrend as investors need to evaluate its future developments, which are still unclear at present,” Emperor Securities analyst Stanley Chan told Bloomberg.