BAO PHARMA-B's stock plummeted 6.39% during intraday trading on Wednesday.
The decline reflects fading market enthusiasm for the company's previously announced supportive measures. Chairman Liu Yanjun had announced plans to increase his stake via open market transactions within three months, while the board proposed a share repurchase authorization of up to 10% of issued H shares. However, market participants have grown skeptical of actual execution: the repurchase remains an authorization rather than a binding commitment, and the company's cumulative losses of RMB 919 million over the past three years raise serious questions about available cash flow to fund meaningful buybacks.
The stock had previously suffered a dramatic flash crash triggered by profit-taking following weak annual results showing widening net losses. A brief rebound driven by the chairman's stake increase announcement has now fully reversed, as selling pressure from fundamental concerns overwhelms the short-term sentiment boost.
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