{"id":42902,"date":"2019-01-17T10:40:30","date_gmt":"2019-01-17T15:40:30","guid":{"rendered":"https:\/\/olduvai.ca\/?p=42902"},"modified":"2019-01-17T10:40:40","modified_gmt":"2019-01-17T15:40:40","slug":"no-one-knows-whats-going-on-hong-kong-stocks-suddenly-plummet-in-avalanche-of-flash-crashes","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=42902","title":{"rendered":"&#8220;No One Knows What\u2019s Going On&#8221;: Hong Kong Stocks Suddenly Plummet In &#8220;Avalanche&#8221; Of Flash Crashes"},"content":{"rendered":"<div id=\"block-zerohedge-page-title\" class=\"block block-core block-page-title-block\">\n<h3 class=\"page-title\"><a href=\"https:\/\/www.zerohedge.com\/news\/2019-01-17\/no-one-knows-whats-going-hong-kong-stocks-suddenly-plummet-avalanche-flash-crashes\"><span class=\"field field--name-title field--type-string field--label-hidden\">&#8220;No One Knows What\u2019s Going On&#8221;: Hong Kong Stocks Suddenly Plummet In &#8220;Avalanche&#8221; Of Flash Crashes<\/span><\/a><\/h3>\n<\/div>\n<div id=\"block-zerohedge-content\" class=\"block block-system block-system-main-block\">\n<article class=\"node node--type-article node--view-mode-full\" role=\"article\" data-gtm-vis-recent-on-screen-2077925_22=\"1787\" data-gtm-vis-first-on-screen-2077925_22=\"1787\" data-gtm-vis-total-visible-time-2077925_22=\"100\" data-gtm-vis-has-fired-2077925_22=\"1\">\n<footer class=\"node__meta\">\n<div class=\"submission-wrapper\"><\/div>\n<\/footer>\n<div class=\"node__content\">\n<div class=\"clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item\">\n<p>By now virtually every trader has personally experienced or participated in a flash crash, whether in FX (most recently two weeks ago when numerous Yen carry pair suddenly tumbled), in stocks or in bonds. But few have observed a flash crash which sparks a domino effect of even more flash crashes.<\/p>\n<p>Well, that&#8217;s precisely what happened in Hong Kong overnight, when a string of local stocks plunged without warning and without any news in afternoon trading, the second perfectly unpredictable flash crash in two weeks leaving investors nursing massive, and unexplained, losses in the world\u2019s fourth-largest equity market.<\/p>\n<p>Jiayuan International Group, Sunshine 100 China Holdings and Rentian Technology Holdings all plunged over 75% in a matter of minutes and at least 10 companies by at least 20% or more by the close, wiping out nearly $5 billion in market value. Most of that came from Jiayuan, which lost HK$26.3 billion on record volume according to <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2019-01-17\/jiayuan-international-plunges-80-in-hong-kong-as-bond-comes-due\">Bloomberg<\/a>.<\/p>\n<div class=\"apester-loading-container apester-hidden\">\n<p><a href=\"https:\/\/www.zerohedge.com\/s3\/files\/inline-images\/hk%20falling%20down.jpg?itok=zDOcLmmO\" data-image-external-href=\"\" data-image-href=\"\/s3\/files\/inline-images\/hk%20falling%20down.jpg?itok=zDOcLmmO\" data-link-option=\"0\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/inline-images\/hk%20falling%20down.jpg\" srcset=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/styles\/inline_image_desktop\/public\/inline-images\/hk%20falling%20down.jpg?itok=zDOcLmmO 1x\" alt=\"\" width=\"500\" height=\"281\" data-entity-type=\"file\" data-entity-uuid=\"26597867-d8f5-445e-be80-3860a9bb2e3c\" data-responsive-image-style=\"inline_images\" \/><\/a><\/p>\n<p>The complete list of stocks that were &#8220;triggered&#8221; is shown below:<\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/s3\/files\/inline-images\/HK%20crashes.jpg?itok=kuaJ7Ohu\" data-image-external-href=\"\" data-image-href=\"\/s3\/files\/inline-images\/HK%20crashes.jpg?itok=kuaJ7Ohu\" data-link-option=\"0\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/inline-images\/HK%20crashes.jpg\" srcset=\"https:\/\/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com\/s3fs-public\/styles\/inline_image_desktop\/public\/inline-images\/HK%20crashes.jpg?itok=kuaJ7Ohu 1x\" alt=\"\" width=\"500\" height=\"400\" data-entity-type=\"file\" data-entity-uuid=\"c07134d5-61d1-412e-b263-dc125775f828\" data-responsive-image-style=\"inline_images\" \/><\/a><\/p>\n<p>What made the latest Hong Kong flash crash episode unique is that it appeared to spark a domino effect, with the first sudden drop catalyzing subsequent collapses: <strong>&#8220;some of these companies might have cross-shareholdings in each other and when one of those starts to tumble, it brings down other related stocks,&#8221;<\/strong> said Bocom strategist Hao Hong. &#8220;It\u2019s likely more similar stock crashes could happen this year.<strong> A lot of share pledges in Hong Kong are underwater, and as soon as the positions are liquidated it triggers an avalanche.<\/strong>&#8221;<\/p>\n<p>This is not the first time Hong Kong has seen such a coordinated liquidation: in 2017, an \u201cEnigma Network\u201d of 50 stocks roiled the city\u2019s markets triggering a crash in dozens of interlinked companies weeks after noted activist David Webb published a report.<\/p>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;No One Knows What\u2019s Going On&#8221;: Hong Kong Stocks Suddenly Plummet In &#8220;Avalanche&#8221; Of Flash Crashes By now virtually every trader has personally experienced or participated in a flash crash, whether in FX (most recently two weeks ago when numerous Yen carry pair suddenly tumbled), in stocks or in bonds. But few have observed a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[24018,24017,4318],"class_list":["post-42902","post","type-post","status-publish","format-standard","hentry","category-economics","tag-flash-crashes","tag-hong-kong-stocks","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/42902","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=42902"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/42902\/revisions"}],"predecessor-version":[{"id":42904,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/42902\/revisions\/42904"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=42902"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=42902"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=42902"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}