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MAGIC EMPIRE GLOBAL LIMITED

(MEGL)
Delayed Nasdaq  -  04:00 2022-09-28 pm EDT
4.000 USD   +0.76%
08/16Magic Empire Global Shares Tumble to Reverse Part of Monday Gains
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08/15Magic Empire Global Shares Rise Sharply Amid Active Trading
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08/10Magic Empire Global Closes $20 Million IPO
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Hong Kong-based fintech firms tumble after dizzying rally

08/09/2022 | 12:46pm EDT
Traders work on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City

(Reuters) - Hong Kong-based fintech firms AMTD Digital, Magic Empire Global and Top Financial Group tumbled on Tuesday after a meteoric rally this month that was reminiscent of last year's meme-stock frenzy.

The obscure companies have recorded eye-watering gains just days after their U.S. market debuts, with AMTD Digital climbing to as high as $2,555.30 last week from its debut price of $7.80 in July. At its peak, the company's market valuation dwarfed that of Facebook-owner Meta Platforms.

On Tuesday, AMTD Digital was down 45% at $221. Online brokerage Top Financial was trading 14% lower at $17.70, a day after its shares doubled in value to $20.75.

Magic Empire Global, which provides financial advisory and underwriting services, plunged 81.4% to $21.53. Its shares had risen as much as 6,000% from the $4 IPO price in just the second session of trading on Monday.

While the dramatic gains drew parallels to the frenzy in shares of GameStop and AMC Entertainment in 2021, trading volumes in the Hong Kong stocks have been at a fraction of the U.S. companies.

"I haven't seen a fundamental development you could point to and say this is why it (the rally) is happening," said Rick Meckler, partner, Cherry Lane Investments.

"Maybe the names are changing, but there's still a lot of interest among these investors seeking out a place to gamble. Eventually, it ends in tears for them."

AMTD Digital has said it was monitoring the share volatility. On Monday, the underwriters of its IPO exercised an option to buy 2.4 million additional shares at the IPO price, taking advantage of the rally.

"It seems strange and I'm surprised the stock exchanges or regulators are not getting more involved because it doesn't sound like an efficient market," said Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, New Jersey.

The Hong Kong-based companies did not respond to requests for comment outside business hours.

(Reporting by Medha Singh, Anisha Sircar, Sruthi Shankar and Bansari Mayur Kamdar in Bengaluru; Editing by Aditya Soni)

By Medha Singh and Anisha Sircar


© Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
AMC ENTERTAINMENT HOLDINGS, INC. 2.95% 7.67 Delayed Quote.-55.63%
AMTD DIGITAL INC. -7.31% 55.19 Delayed Quote.0.00%
CHERRY AG -2.43% 5.22 Delayed Quote.-79.04%
GAMESTOP CORP. 4.52% 27.31 Delayed Quote.-29.56%
MAGIC EMPIRE GLOBAL LIMITED 0.76% 4 Delayed Quote.0.00%
META PLATFORMS, INC. 5.36% 141.61 Delayed Quote.-57.90%
TOP FINANCIAL GROUP LIMITED 7.23% 13.2 Delayed Quote.0.00%
All news about MAGIC EMPIRE GLOBAL LIMITED
08/16Magic Empire Global Shares Tumble to Reverse Part of Monday Gains
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Financials ()
Sales 2021 16,8 M - -
Net income 2021 1,58 M - -
Net Debt 2021 4,68 M - -
P/E ratio 2021 -
Yield 2021 -
Capitalization 80,0 M 80,0 M -
EV / Sales 2020 -
EV / Sales 2021 -
Nbr of Employees 9
Free-Float 37,0%
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Managers and Directors
Sze Hon Chen Chief Executive Officer & Director
Yau Ting Tai Chief Financial Officer
Wai Ho Chan Chairman
Yiu Sing Chan Independent Director
Chi Wai Siu Independent Director
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