Sanergy’s 98% Plunge Erases $2.6bn from Chinese Graphite Firm Amid Hong Kong Regulator’s Warning of Concentrated Ownership

Sanergy's massive 98% collapse eradicates $2.6 billion from the worth of a Chinese graphite company. A Hong Kong authority's caution concerning centralized ownership incites a stock sell-off that had previously escalated by 400% in the past three months.

Sanergy Group, a company that manufactures graphite products, experienced a 98 per cent drop in their stock following a warning from Hong Kong's securities regulator. The regulator cautioned investors about trading the company's stock due to its significantly concentrated ownership.

The sharp drop prolongs a turbulent journey for the stock, which had seen a surge of over 400 per cent in just three months up to mid-August. This erratic fluctuation highlights the dangers associated with a range of small-cap stocks being traded in the city, which are currently under intensified examination from regulatory bodies aiming to eliminate wrongdoing and safeguard investor trust.