Huabao and Renhe tumble after sell-downs

The chairman of Huabao sells $149 million worth of shares in the tobacco flavouring company, while three shareholders part with $87 million of stock in underground mall operator Renhe.

Sharp declines in the share prices of two Hong Kong-listed companies that were the subject of sell-downs by existing shareholders late last week shows that, irrespective of the stockmarket recovery in March and two successful IPOs over the past week, investor sentiment is still cautious. Investors may be willing to buy shares at a deep discount, but a key reason for many of them to do so seems to be the opportunity to make short-term profit.

Huabao International Holdings...

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