Chinese Multibillion-dollar Company Loses 98.4% of Value in Seconds

Sanergy Group Shares Lost more than 98% of Value during trading on the Hong Kong Stock Exchange on Tuesday.

Describing itself as a “world-leading manufacturer of high-energy graphite electrodes,” the company’s share price crashed 98.4% on Tuesday after Hong Kong’s market regulator issued a warning about the company.

In a statement, Hong Kong’s Securities and Futures Commission warned investors that just 26 shareholders own 85.32% of Sanergy Group’s shares, meaning the stock could “volatility significantly even with a small number of shares traded.”

It has.

The SEC announcement in turn sent Sanergy’s share price into a tailspin, sending its market value plunging from more than HK$20.8 billion (US$2.7 billion) on Monday to just HK$328 million on Tuesday, according to Market Watch.

Headquartered in Xinxiang City in China’s Henan Province, Sanergy Group was founded in 2012 with production bases in both Europe and China ahead of its listing on the main Hong Kong Stock Exchange in 2023.

Its shares surged more than 1,190% between its initial public offering in Jan. 2023, and Aug., 2024.