Lenovo Is Close To Being Axed From Stock Exchange
Consumer electronics company Lenovo is close to being booted from Hong Kong stock market index, the Hang Seng Index.
Its shares have been tumbling more than other technology company in the world, Bloomberg reports.
Lenovo is being dubbed, ‘the world’s worst tech stock’ since it was added to the Hang Seng index more than five years ago it has fallen 56 per cent wiping out approximately US$5.6bn in value.
Other companies which have been dropped from the Hang Seng index have seen their value drop a median of 48 per cent before being axed, according to Bloomberg.
Reports say Lenovo’s stock is the most shorted on the Hang Seng Index with 13.8 per cent of its shares available for trade on loan to short-sellers.
The ThinkPad creator sank to its lowest price yesterday due to a US ban on ZTE corp plus a global selloff by hardware manufacturers.
Closer to home, Lenovo is targeting competitors HP and Dell this year to try and grow their share in the B2B, B2C, enterprise and PC markets.
Lenovo was added to the Hang Seng index in March 2013.