Ganfeng Lithium Co. shares were sharply lower on Monday, after the Chinese metal producer and processor said it has received regulatory notice that a case had been filed against it.
The company’s Hong Kong-listed stock lost as much as 8.7% within an hour of trading, while its Shenzhen-traded shares dropped 7.1%. Losses narrowed later on, with shares in Hong Kong and Shenzhen down 3.0% and 1.8%, respectively.
Ganfeng Lithium said in a weekend filing that it had received notice from China’s top market regulator on Friday saying that it decided to file a case against the company earlier this year on suspicion of A-share insider trading.
Ganfeng said the China Securities Regulatory Commission’s case wouldn’t affect its “normal production and business activities,” and that the company will “actively cooperate with the relevant work” of the regulator.