Business
Sanergy’s Cataclysmic Plunge: Regulator Warning Sparks Massive Sell-Off, Erasing US$2.6 Billion from Chinese Graphite Firm Amid Concerns Over Concentrated Ownership
Sanergy's dramatic 98% collapse eradicates $2.6 billion from the worth of a Chinese graphite company. A warning from a Hong Kong regulator about the risks of concentrated ownership has prompted a sell-off in a stock that had previously soared by 400% within the last quarter.
Sanergy Group, a company that produces graphite products, experienced a drastic drop of 98 per cent in its value. This occurred after the securities regulator in Hong Kong cautioned investors about trading the company's stock due to the high concentration of its ownership.
The significant drop is just the latest twist in the tumultuous journey of the stock, which had seen a more than 400 per cent surge in just three months leading up to mid-August. This erratic movement highlights the potential dangers associated with a number of low-cap stocks being traded in the city, that are now under the watchful eye of regulatory bodies. These bodies are aiming to eliminate any wrongdoing and ensure the trust of investors is maintained.
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