Oct. 1 (Bloomberg) -- Asian Citrus Holdings Ltd., an owner and operator of orange plantations in China, fell to the lowest level on record in Hong Kong trading. The company has ties to companies owned by a man accused of insider trading.
Asian Citrus, which reported a 90 percent surge in its full-year profit on Sept. 16, tumbled 28 percent to HK$3.62 in Hong Kong yesterday, its lowest closing price since its debut in November 2009. That compares with the 2.3 percent drop by the benchmark Hang Seng Index.
The company is 13 percent owned by Chaoda Modern Agriculture Holdings Ltd. and buys organic fertilizer from Fujian Chaoda Group, 95 percent owned by Chaoda Modern Chairman Kwok Ho, according to a Hong Kong stock exchange filing yesterday. Kwok, Chaoda Chief Financial Officer Andy Chan, and Fidelity Management’s George Stairs were accused by Hong Kong’s financial secretary of insider trading, according to a notice released by the tribunal on Sept. 28
Asian Citrus said it didn’t know any other reason for the decline in its share price.
Kwok, who founded Chaoda, has a 19.6 percent stake in that company, according to data compiled by Bloomberg. Kwok is disputing the allegations.
--With assistance from Marco Lui in Hong Kong and Joshua Fellman in Shanghai. Editors: Jason Clenfield, Romaine Bostick
To contact the reporters on this story: Kana Nishizawa in Tokyo at firstname.lastname@example.org; Michelle Yun in Hong Kong at email@example.com
To contact the editor responsible for this story: Marco Lui at firstname.lastname@example.org