From early July to August 19, East Buy Holding Limited (01797.HK, stock short name: EAST BUY) has surged more than threefold. The stock set a local intraday high at HK$53.7 before a sharp late-day slide briefly pushed it into negative territory. Intraday volatility widened significantly, with a swift sentiment reversal at elevated levels becoming the dividing line for the day’s action.

(Image source: uSMART HK app)

Market Action: Powerful Surge, Then Hard Brake; Single-Day Swing Exceeds 30%

During the August 19 session, the stock printed an intraday high around HK$53, a fresh 52-week high. Measured from early July, the gain has topped 300%, far outpacing major Hong Kong indices and peer e-commerce names. Multiple financial platforms have tracked the move since mid-August, noting the range advance expanding from “nearly 2x” to “over 3x.”

On liquidity, capital concentration was high and turnover accelerated on the 19th. Technically, the name had entered an extended trend phase, making it more sensitive to news and expectations in the short term. The day’s low touched HK$35.94, carving out a range of over HK$17 and a swing of more than 30%. Turnover exceeded 50 million shares, with a pronounced volume spike that underscored the intense tug-of-war at the highs.

Why It Doubled—and Then Doubled Again—Since July

Looking back at this primary up-leg, East Buy’s cumulative gain since early July approached/exceeded 300%, with nearly a one-month move close to a “double.” Beyond a sector-wide risk-appetite rebound, the company’s narrative is being re-rated—from “streamer traffic” to “product and supply-chain driven” growth—rapidly priced in over the summer. Over the past one month, three months and one year, the stock is up roughly +167%, +273% and +293%, respectively, consistent with investors’ bets on fundamental repair.

Catalysts also helped: in late July the company announced a share buyback programme of up to RMB 500 million. Coupled with the upcoming annual results on August 22, positioning around “improvement plus upside surprise” intensified, propelling the stock along a steeper acceleration phase with rising turnover. This “capital–expectations” positive feedback loop is central to the sharp slope of this rally.

Three Drivers Behind the Late-Day Plunge

First, profit-taking and risk control. After weeks of sharp gains, large paper profits built up. When intraday breakouts failed to extend, systematic take-profit/stop-loss triggers among quant and short-term capital likely produced a late-session “stampede.” The swift flip from strong gains to a brief decline reflects denser contention at elevated levels.

Second, derivatives and leverage amplified into the close. Trading in derivative warrants and callable bull/bear contracts (CBBCs) on the name is active; late-session ticks can spur hedging flows and Gamma effects, further magnifying volatility—a common “late-day amplifier” for high-beta stocks.

Third, pre-results expectations. With annual results due soon, views diverge. Some investors chose to de-leverage and lock in gains. Given the rapid prior ascent, any marginally negative rumor or micro-structure shift in flows was prone to being magnified into a sharp price drop.

Trading & Valuation: Volatility as the New Normal; Two Proof Points to Watch

In the near term, elevated volatility may persist. The >20% intraday swing and heavier turnover suggest the trend may not be over, but the path has become “steeper—and more prone to pullbacks.” For traders, sizing and slippage control matter more than chasing headlines.

Medium term, moving beyond the “streamer-to-product” narrative hinges on two validations: first, whether the August 22 results triangulate gross margin, fulfillment expense ratio and proprietary-brand SKU expansion; second, whether buyback execution aligns with inventory turnover, translating the recent “share-price rise” into “quality-of-earnings improvement.” If delivered, valuation digestion should be smoother; if not, elevated volatility may recur.

How to Buy East Buy on uSMART

After logging into the uSMART HK app, click on "Search" at the top right of the page, input the stock code to access the details page and view transaction details and historical trends. Then click the "Trade" button at the bottom right, select the "Buy/Sell" option, fill in the transaction conditions, and submit your order.

（image source：uSMART HK app）