HAIZHI TECH GP's stock plummeted 7.41% during intraday trading on Thursday, as the share price experienced a sharp decline following a period of significant gains.
The sell-off is attributed to intensified profit-taking pressure from short-term traders. This comes after the stock surged over 22% and 12% on the two previous trading days, respectively, following the company's official inclusion in the Stock Connect program. The rapid rally accumulated substantial short-term gains, prompting investors to lock in profits.
Broader market factors also contributed to the downturn. Market institutions had previously advised investors to temporarily avoid the crowded AI hard-tech sector, while rising expectations for Federal Reserve rate hikes weighed on overall Hong Kong market sentiment, further strengthening the willingness of funds to secure gains at elevated levels.
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