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Rumor on CEO Triggers Sharp Sell-Off in East Buy Shares Despite Company Denial

Summarized by NextFin AI
  • Shares of East Buy (1797.HK) fell sharply by 20.89% to HK$34.32 after rumors involving New Oriental Education CEO Michael Yu led to a late-session sell-off.
  • The stock had previously reached a two-year high of HK$53.70, indicating an intraday swing of over 44%.
  • East Buy's investor relations director labeled the speculation as a rumor and confirmed that the company is in its annual report quiet period.
  • A company representative stated that the claims were purely fabricated, dismissing the rumors reported by media.

AsianFin -- Shares of East Buy (1797.HK) plunged on Monday after a market rumor involving New Oriental Education & Technology Group CEO Michael Yu caused a sharp late-session sell-off.

The stock closed down 20.89% at HK$34.32, despite earlier climbing to a near two-year high of HK$53.70, marking an intraday swing of more than 44%.

In response, East Buy’s investor relations director dismissed the speculation in a company WeChat group, stating: “This is a rumor. Nothing like this has happened. We are still in our annual report quiet period. Thank you for your support.”

A company representative also told Chinese media outlet The Paper that the claim was “purely fabricated.”

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Insights

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