HUA HONG GRACE's stock experienced a significant decline of 5.08% during intraday trading on Thursday, extending a recent corrective pattern.

The sharp drop represents continued profit-taking pressure following a substantial rally earlier in the week, when the stock surged approximately 18%. Market data reveals clear institutional distribution, with institutions net selling RMB 324 million and Shanghai-Hong Kong Stock Connect net selling RMB 98.2 million during the previous surge. Additionally, short-position capital inflows have increased notably in recent sessions, reflecting cautious sentiment among market participants regarding near-term prospects.

The selling pressure has persisted across consecutive sessions as investors take profits following the rapid price appreciation that accumulated significant unrealized gains. The stock had previously benefited from regulatory approval for its share-based acquisition and a target price increase by Goldman Sachs, but these positive catalysts have been overshadowed by the current wave of profit-taking and institutional selling.