Authorities investigate HMM’s share price slide

Authorities investigate HMM’s share price slide

The Financial Supervisory Service and the Korea Exchange are investigating the extraordinary plunges this week in the share price of local line Hyundai Merchant Marine (HMM).

When the restructuring line announced plans of a KRW200bn ($179.4m) convertible bond issuance on Tuesday evening it was greeted with disdain by investors the next day worried about their shares being diluted, HMM’s share price nose diving 27.9% on Wednesday and another 7.1% yesterday. In just two days KRW114.7bn was wiped off HMM’s market value.

It now emerges a total of 155,655 HMM shares were shorted on Tuesday, leading to speculation that some institutional investors and hedge funds were tipped off early about that evening’s convertible bond announcement. The investigation continues.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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