HK Movers | East Buy Rallies 12% as Company Denies New Oriental CEO Investigation

East Buy rallied 12% in Hong Kong on Wednesday. Notably, the stock experienced a "roller coaster" movement yesterday; at 14:50, East Buy surged over 23%, then the price plunged, and by the close, the decline extended to 20.89%, ending at 34.32 HKD.

The company addressed market rumors about New Oriental CEO Michael Zhou Chenggang, allegedly under investigation by regulatory authorities for related transactions, with East Buy's WeChat official account denying these claims. The statement clarified that the rumors about Michael Zhou are completely baseless, and the assertion that "East Buy's commission rate has long exceeded 30%" is grossly inaccurate. The company ensures high-quality and cost-effective products, with an actual average commission rate of less than 20%. Following these false rumors, the company has reported to the police and initiated legal proceedings to pursue these unlawful actions to the end. Additionally, on the evening of the 19th, New Oriental CEO Michael Zhou also debunked the rumors by appearing in a video on his personal social media account.

Regarding the sudden plunge on the afternoon of August 19, Zhong Tai International strategy analyst Yan Zhaojun commented: "In today's after-hours trading session, there was a significant sell-off in the first tier, but later the volume and price coordination indicated signs of bargain hunting. The recent price fluctuations of East Buy are more driven by short-term funds. When these short-term funds collectively exit after achieving their profit targets, it can trigger sharp price volatility. Though the stock may rebound, such a trend dominated by speculative funds is often unsustainable."