Business
Regulatory Warning Sparks Massive Sell-off: Sanergy’s 98% Plunge Erases US$2.6 Billion From Chinese Graphite Firm Amid Concerns Over Concentrated Ownership
Sanergy's colossal 98% crash erases $2.6 billion from the Chinese graphite company's worth. A caution from the Hong Kong regulator about the risks of concentrated ownership prompted a massive sell-off in a stock that had previously soared by 400% in the past quarter.
The Sanergy Group, a company that produces graphite products, saw a dramatic 98% drop in value following a warning from Hong Kong's securities regulator to investors about trading the stock due to its extremely focused ownership.
The significant drop perpetuates the turbulent journey of the stock, which had previously surged over 400 per cent in just three months until mid-August. This dramatic fluctuation highlights the dangers associated with numerous small-cap stocks in the city, which are currently under more rigorous inspection by authorities as they aim to eliminate wrongdoings and preserve the trust of investors.
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