Business
Sanergy’s 98% Crash Erases US$2.6B from Chinese Graphite Firm Amid Hong Kong Regulator Warning: The Perils of Over-concentrated Stock Ownership
Sanergy's dramatic 98% collapse eradicates US$2.6 billion from the value of a Chinese graphite company. The stern warning from a Hong Kong regulatory body about the dangers of consolidated ownership instigates a massive sell-off in a stock that had previously soared by 400 per cent in the past quarter.
Sanergy Group, a company that produces graphite products, saw a 98% drop in its value after the securities regulatory body in Hong Kong cautioned investors to avoid trading the company's stock due to its excessively concentrated ownership.
The extreme drop maintains the unpredictable journey of the stock, which had soared over 400 per cent in three months up until mid-August. The erratic fluctuation highlights the dangers associated with a host of minor capital stocks trading in the city, which are presently under closer examination from regulatory bodies aiming to eliminate wrongdoing and safeguard investor trust.
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