Business
Sanergy’s 98% Crash Erases $2.6 Billion Amid Warnings from Hong Kong Regulator: The Risky Ride of Concentrated Ownership
Sanergy's dramatic 98% crash demolishes US$2.6 billion from the value of a Chinese graphite company. The Hong Kong regulatory authority's alert about concentrated ownership initiated a stock sell-off that had soared by 400% in the previous three months.
Shares in Sanergy Group, a company that manufactures graphite products, plummeted by 98 per cent following a cautionary statement from Hong Kong's securities watchdog. They advised investors to refrain from trading in the stock due to its excessively centralized ownership.
The dramatic drop remains a part of the stock's turbulent journey, which had seen an increase of more than 400 per cent in just three months leading up to mid-August. This unpredictable fluctuation highlights the dangers associated with a range of small-cap stocks being traded in the city. These stocks are now subject to more careful examination from regulatory bodies as they aim to eliminate wrongdoing and safeguard the faith of investors.
Discover more from Automobilnews News - The first AI News Portal world wide
Subscribe to get the latest posts sent to your email.