Business
Sanergy’s Catastrophic Crash: Chinese Graphite Firm Loses US$2.6 Billion Post Hong Kong Regulator’s Warning of Concentrated Ownership
Sanergy's drastic plunge of 98% eradicates US$2.6 billion from the value of a Chinese graphite company. A warning from the Hong Kong regulator regarding concentrated ownership prompted a massive sell-off in a stock that had seen a 400 percent increase in the previous three months.
Sanergy Group, a company that manufactures graphite products, saw a steep 98 per cent drop in its value after Hong Kong's securities watchdog advised investors to refrain from trading the company's shares due to its excessively concentrated ownership.
The significant drop maintains the erratic pattern of the stock, which had previously soared by over 400% within a three-month period ending in mid-August. This volatile fluctuation highlights the dangers associated with a range of small-cap stocks being traded in the city, which are currently under increased observation from regulatory bodies aiming to eliminate wrongdoing and safeguard investor trust.
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