Business
Sanergy’s Staggering 98% Meltdown Erases US$2.6 Billion: Hong Kong Regulator’s Warning Fuels Sell-Off, Shakes Confidence in Highly Concentrated Stocks
Sanergy's dramatic 98% collapse eradicates US$2.6 billion from the value of a Chinese graphite company. A warning from a Hong Kong regulator about the dangers of concentrated ownership sparks a massive sell-off in a stock that had previously risen 400% in recent months.
Sanergy Group, a company that produces graphite products, saw a dramatic drop of 98% in its value following a cautionary statement by Hong Kong's securities watchdog. The regulator advised investors to refrain from transacting in the company's shares due to its significantly consolidated ownership.
The severe drop persists in a tumultuous journey for the stock, which had seen an increase over 400 per cent in just three months leading up to mid-August. This extreme fluctuation highlights the dangers presented by a range of small-cap stocks being traded in the city, that are currently under the watchful eye of regulatory bodies aiming to eliminate wrongdoing and safeguard investor trust.
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