Sound Global Slumps After Trading Resumes Amid Allegation
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Sound Global Ltd. tumbled a record 29 percent after resuming trading in Hong Kong for the first time since the water-treatment firm was accused of exaggerating revenue, an allegation disputed by the Beijing-based company.
The shares closed 29 percent lower to HK$5.39, the biggest decline since the stock started trading in October 2010 on volume more than 30 times the three-month daily average. The stock hadn’t traded since Feb. 4, suspended after Emerson Analytics Co. rated Sound Global a strong sell with a price target of HK$2.40 in a 55-page report.
