Hanwang’s shares slumped nearly 6 per cent upon Friday after the business flagged business, investing, and earnings dangers at the request from the Shenzhen bourse plus disclosed that several major shareholders experienced reduced their buy-ins. Still, the share is up 65 % so far this 30 days.
If a stock is wear the exchange’s “focus watch list”, it allows regulators in order to potentially demand clean disclosures, impose limitations on trading, or investigate related securities accounts for suspected misbehaviours if required.
The regulatory scrutiny on Hanwang can further cool the frenzy around the technology that had pumped up shares within Chinese AI businesses such as Beijing Haitian Ruisheng Science Technology and CloudWalk Technology.
In its swap filing, Hanwang stated its NLP technology is still small and nascent, and faces numerous uncertainties ahead.
In addition , the business expects an annual lack of up to 140 million yuan (US$20. 57 million) for 2022.
“We recommend investors to invest rationally, refrain from speculating, plus pay attention to investment danger, ” Hanwang said.
The company also disclosed share product sales by its main shareholders this month.
Henan Yellow-colored River Computer System, a top 10 shareholder, offered 2 . 6 million Hanwang shares among Jan 30 and Feb 7, Hanwang said.
Tongfang Investment sold 3. 4 million stocks during the period, while Juneng Capital Management offloaded 1 . 2 million shares, the company added.