Kingboard Holdings' stock tumbled 6.68% during intraday trading, reflecting significant market pressure on the Hong Kong-listed company. The sharp decline follows broader sector weakness and negative sentiment surrounding the firm's leadership and business environment.
The sell-off was triggered by regulatory developments in the United States, where New York State's governor signed an executive order banning the construction of large data centers consuming 50 megawatts or more of power. This move has raised concerns about potential constraints on AI-related capital expenditure, putting pressure on AI hardware stocks. Kingboard's subsidiary, Kingboard Laminates, had already plunged over 14% in the previous trading session in response to these regulatory headwinds.
Compounding the regulatory concerns, the company has faced persistent insider selling. Chairman Zhang Guorong disposed of 100,000 shares recently, while Executive Director Zheng Yongyao also conducted share disposals earlier in the month. Additionally, major shareholder Hallgain Management Limited's stake has declined to 31.54%, approaching the 30% threshold that would trigger a mandatory general offer requirement.
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