Geely Auto's stock plummeted 6.65% during morning trading on Wednesday, reflecting significant selling pressure on the automaker's shares.
The sharp decline came amid broad weakness in the automobile manufacturers sector, with several major peers also experiencing downward pressure. Additionally, the company recently issued 132,000 new shares from employee stock option exercises at prices significantly below market value, raising concerns about potential shareholder dilution.
Despite Geely Auto maintaining an active share buyback program with consecutive repurchases for over eight trading days, these positive measures were overshadowed by the sector-wide challenges and dilution concerns from the below-market share issuance.
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