Business
Sanergy’s 98% Market Plunge: Chinese Graphite Firm Loses $2.6 Billion Following Hong Kong Regulator’s Warning Against Concentrated Ownership
Sanergy's colossal 98% collapse eradicates US$2.6 billion from the worth of a Chinese graphite company. A caution from a Hong Kong regulator about the dangers of ownership concentration leads to a massive sell-off in a stock that had previously soared by 400 per cent in the recent three months.
The Sanergy Group, a manufacturer of graphite goods, saw its shares plummet by 98% after the securities regulator in Hong Kong cautioned investors about trading its shares due to the company's extremely concentrated ownership.
The significant drop extends the unpredictable trajectory of the share, which had soared by over 400 per cent in just three months leading up to mid-August. The erratic fluctuation highlights the dangers associated with a range of low-capitalization stocks trading in the city. These are now under closer inspection by authorities in their efforts to eliminate wrongdoing and safeguard investor trust.
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