HK Stock Market Move | SHENGHUI CLEAN (02521) rebounded more than 11%; Dongguan HuaLi Industries' cross-border acquisition of SHENGHUI CLEAN has been questioned by the Shanghai Stock Exchange.

SHENGHUI CLEAN (02521) plunged 34% yesterday, rebounded over 11% today, as of the time of writing, rose 11.43%, trading at HKD 0.78, with a turnover of HKD 16.0977 million. On the news front, according to the announcement made by Dongguan HuaLi Industries on January 17th, the company's wholly-owned subsidiary Huali Asia intends to use HKD 47.50 million of its own or self-raised funds to purchase a 19% stake in SHENGHUI CLEAN. After the completion of the transaction, the company will become the second largest shareholder of SHENGHUI CLEAN. SHENGHUI CLEAN's main business is property cleaning services and public space cleaning services. It is worth noting that on January 18th, Dongguan HuaLi Industries received an inquiry letter from the Shenzhen Stock Exchange regarding the acquisition. The Stock Exchange requested the company to explain the reasons for the investment, necessity, and risks of this transaction; to explain the pricing basis and reasons for the decline in performance of the target company; to disclose insider information management in the acquisition process and verify the trading situation of insiders. The company is required to disclose its response to the inquiry letter within 5 trading days.