YOFC's stock plummeted 5.14% during intraday trading on Tuesday, as heavy selling pressure emerged following a significant stake reduction by a major institutional investor.
The decline was triggered after JPMorgan Chase disclosed that it had sold 6.16 million shares of YOFC on August 5 at an average price of HK$117.02, reducing its long position from 6.77% to 5.31%. The sale signaled weakening institutional confidence and sparked a wave of profit-taking. The stock had already seen a sharp rally in prior sessions, with its A-shares triggering abnormal volatility alerts twice as cumulative gains topped 20% in just three trading days. Although the company guided for first-half net profit growth of 711% to 914% year-over-year, the market had largely priced in the upbeat earnings outlook, leaving the stock vulnerable to a pullback.
The combination of the JPMorgan disposal, elevated valuations, and an overbought technical picture weighed on sentiment, intensifying near-term selling pressure and driving the sharp intraday drop.
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