Major Investor’s Forced Sale Triggers Sanergy’s Stock Meltdown: A 98% Plunge Wipes Out US$2.58 Billion

Sanergy, a Chinese company, attributes the drastic fall in Hong Kong's stock to the compulsory sale of shares by its primary investor, Otautahi Capital. Following the mandatory sale of shares by Otautahi Capital, Sanergy's stock tumbled by 98%.

Sanergy stated that the group's business activities continue as usual, with no significant alterations to the operational and financial status of the group.

The unexpected plummet of Sanergy's value on Tuesday took investors by surprise, with many rushing to figure out the cause of this drastic downfall. The day's activities resulted in a loss of HK$20.1 billion (US$2.58 billion) in market value for Sanergy, marking a 1,000-fold increase in daily turnover from the average of the past 30 days.

Previously, Otautahi Capital held the most significant share in Sanergy, while a collective of 25 stakeholders possessed an extra 27.65% stake, as per a prior announcement from the Securities and Futures Commission (SFC) in Hong Kong. The SFC had carried out an investigation into the ownership structure of the company.