Business
Trading Suspension Hits New World Development Over Leadership Changes: Retail Unit and Stock Prices Affected Amidst Major Losses
Trading activity has been halted for New World Development and an associated public entity due to a report concerning the firm's upcoming management. The retail division of New World Development also ceased trading in light of the report about Adrian Cheng.
Cheng, who belongs to the third generation of the family leading the business empire, is set to assume a non-executive position within the firm, according to the sources.
The Cheng family, one of the wealthiest in Hong Kong, controls New World. On Thursday, the company announced that it had asked for a pause in trading due to impending company-related announcements concerning undisclosed internal information. The same declaration was made by New World Department Store China (NWDS), a subsidiary of the company concentrating on the mainland China market.
Shares of New World closed with a 2.5 per cent increase at HK$8.19 on Wednesday, while the standard Hang Send Index saw a rise of 0.7 per cent. However, NWDS experienced a drop of 2.75 per cent, closing at HK$0.248 per share.
New World is on the brink of announcing a deficit ranging from HK$19 billion (US$2.44 billion) to HK$20 billion for the fiscal year that concluded on June 30. This is the company's biggest loss since its inception over fifty years ago by Cheng Yu-tung's grandfather, as per the earnings caution released the previous month.
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