HK Stock Market Move | LEADER EDU (01449) drops over 27%, named by Hong Kong's Securities and Futures Commission for highly concentrated shareholding; previously surged over fivefold in just over two months.

LEADER EDU (01449) fell sharply this morning, down 25.21% as of press time to HK$0.905, with turnover of HK$1.5361 million. On the news front, on October 14, according to the results of an inquiry by Hong Kong's Securities and Futures Commission into LEADER EDU's shareholding distribution, as of October 6 this year, 20 shareholders together held approximately 230 million shares, accounting for 28.74% of issued shares. Together with two controlling shareholders and one substantial shareholder holding approximately 497 million shares, they collectively accounted for 90.82% of issued shares, meaning only 73.41 million shares, or 9.18% of issued shares, were held by other shareholders, indicating a highly concentrated shareholding. LEADER EDU issued an announcement in response, stating that it will conduct further investigation into the shareholding matters set out in the SFC's announcement and will publish a further announcement as soon as possible, while confirming that its public float is not less than 25% and that it has complied with the Listing Rules. The company's closing share price had previously risen 527% from HK$0.31 on July 21 to HK$1.945 on October 6, and closed at HK$1.225 on October 13, still 295% higher than on July 21.