Yurun placement triggers heavy sell-off

Hong Kong-listed China Yurun Food Group dropped 12% on Friday after a placement of new and existing shares that raised a combined HK$2.65 billion $341 million.

Market watchers said the sell-off, which pushed the share price well below the placement price, was a sign that investors are getting a bit fatigued after two weeks packed with follow-ons and block trades. In light of this and the fact that the deal was quite punchy in relation to the daily trading volume, some argued that the Yurun placement was too aggressively priced -- even though the final price was fixed at the bottom of the range. According to Kim Eng analyst Jacqueline Ko, the pork...