HK Stock Market Move | TRANSTECH (09963) plunged over 20%, being named by the Hong Kong Securities and Futures Commission for its highly concentrated ownership.

TRANSTECH (09963) plunged more than 20%, with the company's stock price closing at 10.22 Hong Kong dollars on June 24, an increase of 413.57% from the closing price of 1.99 Hong Kong dollars on April 10, 2026. As of the time of writing, it fell by 20.4% to 8.39 Hong Kong dollars, with a turnover of 7.5291 million Hong Kong dollars. On the news front, TRANSTECH was criticized by the Hong Kong Securities and Futures Commission for its highly concentrated shareholding structure. The investigation results showed that on June 16, the company had 20 shareholders collectively holding 18.49% of the shares. Although 7.98% were registered in the name of Hong Kong Central Clearing (Nominees) Limited in the company's shareholder register in Hong Kong, they were not held in the Central Clearing and Settlement System (CCASS). These shares, together with 65.22% held by a major shareholder of the company, amounted to 91.69% of the company's issued share capital. Therefore, only 8.31% of the shares were held by other shareholders. It is reported that in April of this year, TRANSTECH announced its intention to acquire all the shares of Haomin Investment Holdings for approximately 78 million yuan, thereby indirectly controlling 51% of the equity of a company in Hangzhou. The latter has a fiber preform rod production capacity of approximately 1.04 million fiber cores kilometers and an actual capacity of approximately 850,000 fiber cores kilometers. The announcement stated that although the Hangzhou company recorded a net loss for the three years ending on December 31, 2025, due to the surging market prices of fibers and fiber preform rods, it is expected to turn losses into profits in 2026 and achieve a significant improvement in profitability.