Hong Kong stock's 78% collapse adds to wave of sudden crashes

While Hong Kong isn't new to sudden stock slumps, the fresh wave of declines is putting the spotlight on corporate governance

A third Hong Kong stock in less than a week lost most of its value in a sudden one-day plunge, underscoring concern that the $5.2 trillion market has become a breeding ground for wild volatility.

China First Capital Group, an investment company that focuses on financial and education services, plunged as much as 78 per cent on Wednesday before trading was suspended. Virscend Education, which is partly owned by First Capital, also lost as much as 78 per cent before paring its decline to close 33 per cent lower. The moves wiped out a combined $1.2 billion in shareholder value. Virscend’s