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New | Reorient share price jumps in Hong Kong after investment by Alibaba’s Jack Ma, others

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Alibaba's Jack Ma at the debut of his company in New York. News that he and other investors have piled into Reorient Group sparked a huge rally in its shares in Hong Kong on Monday. Photo: AFP

The Hong Kong share price of Reorient Group shot up 172.2 per cent to HK$24.50 by 11.10 am on Monday after the Hong Kong-based investment bank announced details of its new investors who include entrepreneurs like Alibaba founding chairman Jack Ma Yun.

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Reorient was the Hong Kong stock that rose the most on Monday morning, when it resumed trading after being suspended on April 21.

The placement price of HK$2 is roughly 12 times cheaper than its share price of HK$24.50.

By 11.10 am on Monday, 29.5 million shares have changed hands in one of the heaviest trading sessions of its history, far above its five-day average of 4.8 million shares and its 90-day average of 1.2 million shares.

Last Friday evening, Reorient announced it had placed 1.94 billion shares for a total of HK$3.89 billion to five subscribers.

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The subscriber who will have the biggest shareholding of 56 per cent of Reorient is YHFL Financial Holdings, a Cayman Islands company which is 40 per cent owned by Ma and 60 per cent by David Yu Feng, a founding chief executive of Shanghai Target Media, a Chinese display advertising firm, and a director of Huayi Brothers Media Group, a Chinese film production and record label company.

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