The stock began surging around the middle of this year and was added to the FTSE Global Equity Index Series China Index in late September, prompting passive funds managed by the likes of Vanguard and State Street Corp. to buy. On the first trading day after ArtGo was included in the index, it plunged nearly 50%. State Street and Vanguard declined to comment.
By early October, ArtGo had begun rallying again. The gain accelerated after MSCI said on Nov. 7 that it would add the company to its indexes, sending the stock up more than 100% between the announcement and Wednesday’s close. Its plunge on Thursday was the biggest in Hong Kong, where the benchmark Hang Seng Index slid 1.6%.
This article was provided by Bloomberg News.