Business
Sanergy’s 98% Plunge and Regulatory Warnings Trigger Mass Sell-off: The Risky Ride of Concentrated Ownership in Hong Kong’s Small-Cap Stocks
Sanergy's massive 98% crash eradicates $2.6 billion from the value of a Chinese graphite company. A caution from a Hong Kong regulator regarding excessive concentration of ownership prompts a massive sell-off in a stock that had previously surged by 400% in the past three months.
Sanergy Group, a company that produces graphite products, saw a shocking 98% drop in its value following a cautionary statement from Hong Kong's securities regulator. The watchdog advised investors to avoid trading in the company's stock due to its highly concentrated ownership.
The dramatic fall extends the volatile journey of the stock, which had seen a rise of over 400 per cent in just three months leading up to mid-August. This extreme fluctuation highlights the dangers associated with a range of small-cap stocks being traded in the city, which are currently under greater examination by authorities in their efforts to eliminate misconduct and safeguard investor trust.
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