-- Silkwave (HKG:0471) said forced sales of shares held by a substantial shareholder and its chairman triggered a sharp drop in its share price and spike in trading volume, according to a Wednesday Hong Kong bourse filing.
Shares of the media and transmission business were up nearly 2% in Thursday morning trade.
The company said Chi Capital, a substantial shareholder, defaulted on a loan secured by its holdings, leading to the forced sale of about 53.3 million shares, or roughly 11.1% of the company's issued capital.
Separately, about 24.4 million shares held by Chairman Chau Ngai Fung were also subject to forced sale following the price decline, reducing his stake to about 2.6%.