HK Stock Market Move | Red Star Macalline Group Corporation (01528) soared nearly 40%, with the implementation of new market value management rules. The company's market value has plummeted by as much as 70%.

Red Star Macalline Group Corporation (01528) surged nearly 40%, rising 39.11% to HK$2.49 at the time of writing, with a trading volume of HK$147 million. On the news front, on November 15, the China Securities Regulatory Commission issued "Guidelines for the Supervision of Listed Companies No. 10 - Market Value Management". China Securities Co., Ltd. pointed out that the release and implementation of the market value management guidelines will have a positive impact on listed companies in the building decoration industry that have been trading below book value for a long time. The introduction of market value management guidelines will guide companies to enhance their own value through measures such as share buybacks, capital operations, dividends, etc., with valuation returning to 1 times PB. It is reported that Red Star Macalline Group Corporation has a P/B ratio of only 0.3%, with a discount of up to 69.33%. In the first half of this year, the company generated revenue of 4.225 billion RMB, a decrease of 25.35% year-on-year; the company's attributable loss to owners was 1.337 billion RMB, a turnaround from profit to loss. In 2023, the Xiamen State-owned Assets Supervision and Administration Commission invested 6.286 billion RMB to acquire controlling rights of Red Star Macalline Group Corporation.