Business
Sanergy’s 98% Plunge Wipes Out $2.6B: The Risks of Concentrated Ownership Exposed by Hong Kong Regulator
Sanergy's drastic 98% plunge demolishes US$2.6 billion from the worth of a Chinese graphite company. The Hong Kong overseer's alert about concentrated ownership initiates a massive unloading of stocks that had previously surged 400 per cent in the past quarter. The same warning from the Hong Kong regulator about concentrated ownership caused a massive sell-off in the stock that had previously soared 400 per cent in the last three months.
The value of Sanergy Group, a company that manufactures graphite products, dropped drastically by 98% following a warning from Hong Kong's securities regulator. The regulator cautioned investors to refrain from trading the company's shares due to its significantly centralized ownership.
The severe drop marks another twist and turn for the stock, which had previously skyrocketed over 400 per cent in just three months leading up to mid-August. This unpredictable fluctuation highlights the dangers associated with a range of small-cap stocks traded in the city. These are now under closer examination by regulatory bodies as they aim to eliminate wrongdoing and safeguard investor trust.
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