Business
Sanergy’s 98% Meltdown and Hong Kong Regulator’s Warning Lead to US$2.6 Billion Loss for Chinese Graphite Firm
Sanergy's massive 98% decline eradicates US$2.6 billion from the worth of a Chinese graphite company. A caution from a Hong Kong regulator regarding consolidated ownership provoked a stock sell-off that had surged 400 per cent in the previous three months.
The stock of graphite product manufacturer Sanergy Group plummeted by 98% following a cautionary announcement from Hong Kong's securities regulator. The regulator urged investors to avoid trading the company's stock due to its significantly concentrated ownership.
The stock's dramatic fall is just the latest twist in a tumultuous journey, which saw it skyrocket by over 400 per cent within three months up until mid-August. This extreme fluctuation highlights the dangers associated with a range of low-cap stocks on the market in the city. Currently, these are subject to greater inspection from regulatory bodies aiming to eliminate misconduct and ensure investor trust.
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