Li Ka-shing’s conglomerate disavows meme stock AMTD Digital after 14,000% surge


Hong Kong tycoon Li Ka-shing’s CK Hutchison Holdings has distanced itself from AMTD Digital after the meme stock’s worth surged to greater than $200bn since itemizing in July.

After pricing its American depositary receipts at $7.80 for its New York itemizing, the Hong Kong-based digital financial institution’s stock has risen greater than 14,000 per cent and closed Wednesday’s session at $1,100.

The rally has pushed AMTD Digital’s market capitalisation to greater than $203bn, simply surpassing Wall Street funding banks resembling Morgan Stanley ($149bn) and Goldman Sachs ($119bn).

There was no obvious set off for the surge, which drew comparisons to the “meme stock” buying and selling frenzy in 2020 and 2021. AMTD Digital’s ticker HKD was one of the crucial talked about on Reddit’s WallStreetBets chatroom this week, in accordance with information from Quiver Quantitative.

AMTD Digital “expressed its appreciation of support from the investor community” in an announcement on Tuesday, however mentioned there had been no materials change in circumstances or occasions regarding its enterprise operations.

CK Hutchison mentioned on Thursday it “does not hold any shares in AMTD Digital and has no business dealings with the company”. It mentioned it holds “less than 4 per cent” of shares in AMTD Group and is in negotiations to promote them. Li is Hong Kong’s richest man and CK Hutchison’s senior adviser.

But AMTD Group, a Hong Kong-based firm that partly owns AMTD Digital, mentioned on its web site that CK Hutchison “established AMTD Group in 2003 as a founding member”. AMTD Group owns a 50.6% share in AMTD Idea and AMTD Idea owns 88.7% of AMTD Digital.

On Thursday, the net web page about CK Hutchison had been taken down and skim “Page not found”.

Shares of AMTD Idea, which is listed in Singapore and New York, have additionally considerably rallied. AMTD Idea has risen 470 per cent on Wall Street because the AMTD Digital preliminary public providing final month.

Calvin Choi, a former UBS banker and AMTD Group chair, is contesting a two-year licence ban given by Hong Kong’s Securities and Futures Commission in June for “conflicts of interest”, in accordance with courtroom paperwork.

AMTD Digital and AMTD Idea Group didn’t instantly reply to a request for remark. Choi couldn’t instantly be reached for remark.

AMTD Group holds a digital banking licence in Hong Kong, which it gained in 2019 in a consortium with Xiaomi, the Chinese know-how firm. A bid to win an identical banking licence in Singapore the next 12 months was not profitable.

Mak Yuen Teen, an affiliate professor of accounting on the National University of Singapore, mentioned that since so a lot of AMTD’s shares had been held by its mum or dad firm, and never obtainable freely for buying and selling, the stock was a “classic candidate for stock manipulation”.

Turnover in AMTD Digital has fallen sharply over the previous week, with lower than 120,000 shares buying and selling arms on the New York Stock Exchange throughout Wednesday’s session, about one-tenth of the buying and selling quantity for Goldman’s shares.

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