Sanergy’s 98% Collapse and Regulatory Concerns Wipe Out $2.6B in Value for Chinese Graphite Firm Amid Hong Kong’s Stock Sell-Off

A drastic 98% plunge in Sanergy's value has obliterated US$2.6 billion from a Chinese graphite company's worth. A caution from Hong Kong's regulator about the risks of concentrated ownership has sparked a massive sell-off in a stock that had seen a 400 per cent rise in recent months.

The Sanergy Group, a company that produces graphite items, saw a dramatic drop of 98 per cent in their stock value. This came after Hong Kong's securities regulatory body cautioned investors about trading their stock due to the excessive centralization of its ownership.

The significant drop perpetuates a turbulent journey for the stock, previously surging over 400 per cent in the span of three months leading up to mid-August. This erratic fluctuation highlights the dangers associated with a group of small-cap stocks in the city, currently under intensified examination from regulatory bodies aiming to eliminate wrongdoing and safeguard investor trust.