The Zhitong Finance App learned that Zhongbao New Materials (02439) fell by more than 14% and plummeted 69% in the past 2 trading days. As of press release, it had fallen 14.43% to HK$0.83, with a turnover of HK$500,000. It is worth noting that the company's stock price once surged 343% since it went public in March last year.
According to information, Zhongbao New Materials was founded in 2014 and is an enterprise focusing on the development and manufacture of biodegradable plastic products. Its main products include biodegradable roll bags, shopping bags and packaging stretch film, etc., which are widely used in supermarket chains, department stores and shopping malls.
Earlier, on the evening of October 3, 2023, the company announced that controlling shareholders Lvsetianye and Lvsesenlin signed an agreement with no less than six buyers to sell a total of 160 million shares of the company, accounting for 16% of the company's total share capital.
Analysts believe that the current sharp drop in the stock price of Zhongbao New Materials may be related to market concerns about the uncertainty brought about by its controlling shareholders' holdings reduction to the company's future development. Furthermore, the recent weak overall performance of the Hong Kong stock market may also have had a certain impact on the stock price of Zhongbao New Materials. However, for “monster stocks” such as Zhongbao Xincai, stock price fluctuations are often affected by multiple factors such as market sentiment, capital flows, and company performance, and investors need to maintain a cautious attitude.