Guangdong Investment Ltd (00270.HK) saw its stock price plummet by 9.38% in the pre-market trading session on Tuesday, as investors reacted to a series of significant leadership changes announced by the company.
The company disclosed that Lin Tiejun has resigned from his positions as Executive Director and Vice Chairman, while Wen Yinheng stepped down as Executive Director and Managing Director. In a surprising move, Kuang Hu, who recently resigned as Vice Chairman from Guangdong Land Holdings Ltd (a separate entity), has been appointed as an Executive Director of Guangdong Investment Ltd. These leadership changes have sparked concerns among investors about the company's future direction and stability.
Adding to the market's unease, Guangdong Investment declared a final dividend of HK 7.27 cents per share. While dividend payments are typically viewed positively, the significant stock price drop suggests that investors may have been expecting a higher payout or are more focused on the leadership transition. The combination of major management changes and potentially disappointing dividend news appears to have triggered a strong negative sentiment towards the stock.
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