The value of the securities of the Chinese computer equipment manufacturer Lenovo collapsed by more than 17% after the company canceled an application for listing its shares on the Shanghai Stock Exchange STAR Market. This is evidenced by the auction data.
The stock drop was Lenovo's biggest daily price collapse in the last ten years.
The company's representatives were going to place securities worth ¥10 billion (around $1.55 billion) on the Shanghai stock Exchange. However, on October 8, Lenovo announced that they would cancel the planned listing. This happened a few days after the STAR Market exchange approved the application for the placement of shares.
On October 10, Lenovo reported that the cancellation of the listing was due to a possible error in the financial indicators indicated in the documents. No further details were provided.
Lenovo is one of the world's largest manufacturers of personal computers. The company accounts for 20% of the PC market. The manufacturer's shares are listed on exchanges in Hong Kong and New York.
At the close of trading on the Hong Kong Stock Exchange, Lenovo securities were trading at 7.6 HKD.