*Updated 09 Apr 2021*
It's come to light that in recent years, HK market seems to have several stocks with sudden stock plunges, many times with unknown reasons.
If you are receiving investment advise to buy a stock from unknown sources, please be extra careful.
Here are some articles related to HK sudden stock plunges:
- https://www.straitstimes.com/business/companies-markets/hong-kong-stocks-78-collapse-adds-to-wave-of-sudden-crashes
- https://www.nytimes.com/2019/12/01/business/dealbook/hong-kong-stocks.html
- https://www.businessinsider.com/hong-kong-stock-market-shares-crash-80-without-warning-2019-1
The Singapore Police Force has also brought to our attention the following advisory on pump and dump scams involving overseas listed companies.
What is a “pump and dump” scam?
A “pump and dump” scam is a form of stock market manipulation where fraudsters artificially inflate the price of a share (“pumping”), before selling their own shares once the price goes up (“dumping”). The fraudsters “pump” up the share price using a variety of methods, including spreading favourable but fake news about the company.
The Singapore Police Force has received many reports of Singaporean victims falling prey to pump and dump scams involving Hong Kong listed shares. The victims were typically approached by scammers via platforms such as WeChat, LinkedIn or dating applications. These scammers would then patiently work their way to gain the victims’ trust by texting them frequently on the pretext of friendship or networking purposes. Once trust had been established, the scammers would share that they possessed insider information on certain companies listed on overseas stock exchange and then encourage victims to buy these shares on the promise of quick and guaranteed profits.
