Business
Sanergy’s 98% Plunge Wipes Out $2.6B in Value Amid Hong Kong Regulator’s Warning, Highlighting Risks in Small-Cap Stocks
Sanergy's substantial 98% decline eradicates US$2.6 billion from the worth of a Chinese graphite company. A caution from the Hong Kong regulator about the risk of concentrated ownership led to a stock sell-off that had previously surged by 400 per cent in recent months.
Shares in Sanergy Group, a manufacturer of graphite products, plummeted by 98% following a cautionary statement from Hong Kong's securities regulator. The regulator urged investors to refrain from trading the company's stock due to its exceedingly centralized ownership.
The severe drop persists in a chaotic journey for the stock, which had seen a rise of over 400 per cent in just three months leading 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 presently under heightened observation from regulatory bodies aiming to eliminate misconduct and safeguard investor trust.
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