Jingwei Tiandi Plummets 83% Due to Major Shareholder Sell-off
Jingwei Tiandi (02477) experienced a drop of over 83% on May 21 without any substantial negative news, with a very high turnover rate, and mainland investors became the main buyers.
Key figure Qian Fenglei from Ningbo (nicknamed "Qian Duoduo") took control of the company at a low price and built a successful persona on social media while promoting topics like computing power platforms. In April, a 1-for-4 stock split was implemented, and it was included in the Hong Kong Stock Connect in early May.
In terms of market mechanics, funds from mainland Hong Kong Stock Connect bought heavily during the stock split and topic hype; event-driven funds shifted from the company's major shareholders and early investors to retail investors; Qian Fenglei and related parties benefited from selling off shares, putting pressure on mainland retail investors and small investors who bought at high prices.
Source: Public Information
ABAB AI Insight
Qian Fenglei previously accumulated a large following on social media through a persona of wealth and philanthropy, having participated multiple times in the acquisition of control of Hong Kong-listed companies and promoted topics like Web3 and stablecoins. In early 2025, he took control of Jingwei Tiandi through Hengfeng International Holdings and became chairman, continuing his path of rapidly boosting stock prices through thematic promotion.
In terms of capital strategy, Qian Fenglei mobilized mainland retail funds by increasing his stake at low prices, implementing stock splits, and including the company in Hong Kong Stock Connect, transforming it from a traditional telecom business into an AI computing power concept platform. After the stock price increase, he realized significant reductions through high turnover rates, achieving a rapid exit from company control to cash.
Similar to the flash crash cases of many Hong Kong stocks from 2020-2022 after thematic speculation, and the selling patterns of some 'concept king' companies after being included in Hong Kong Stock Connect; currently, small-cap companies in Hong Kong are transitioning from theme-driven to fundamental returns, and such events expose the fragility of stocks with poor liquidity.
Essentially, this is a concentration of capital, where retail funds are funneled into a single shell company through social media personas and thematic packaging, followed by harvesting at high levels. The mechanism relies on the convenience of Hong Kong Stock Connect and the reduced participation threshold from stock splits, quickly forming a high turnover selling structure while amplifying the price manipulation space for small-cap stocks.
ABAB News · Law of Cognition
Splitting + Themes + Hong Kong Stock Connect often constitutes a triple blow to retail investors. The more dazzling the successful persona on social media, the more severe the retail investor's losses when funds flee. An increase without fundamental support has always been a prelude to a sell-off.