Business
Sanergy’s 98% Stock Plunge Erases US$2.6 Billion Amid Hong Kong Regulator’s Warning: The Perils of Over-Concentration in Stock Ownership
Sanergy's staggering 98% plunge eradicates US$2.6 billion from the worth of the Chinese graphite company. A caution from Hong Kong's regulatory authority about over-centralization of ownership induces a stock sell-off that had previously skyrocketed by 400% in the past three months.
Sanergy Group, a company that manufactures graphite products, saw a 98 per cent plummet in its stock value after Hong Kong's securities regulator advised investors to refrain from trading the company's stock due to its excessively centralized ownership.
The severe drop carries on the turbulent journey of the stock, which had previously surged by over 400 per cent within a period of three months leading up to mid-August. This erratic fluctuation highlights the dangers associated with a broad range of small-cap stocks trading in the city. These are now coming under greater investigation from regulatory authorities as they aim to eliminate misconduct and safeguard investor trust.
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